2014 15 budget presentation

FY 2014-15 Proposed Budget and Plan of Municipal Services

August 11th, 2014

Presented by Robert Camareno, City Manager

Population Projections

2

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

18/8

2

FY 2014-15 Proposed Budget Recap of Priorities

Employee Retention and Attraction through

Competitive Compensation

Addressing Increasing Demand on Services

Street Repairs and Improvements

Reinstatement of the Equipment

Replacement Fund

3

FY 2014-15 Proposed Budget Challenges

4

Maintaining 30% fund balance reserve

Employee compensation is behind the market

Maintaining balance of recurring revenues and expenditures

Loss of sales tax revenue from Ashley Furniture

Funding debt service for the 2013 bond program

4

FY 2014-15 Proposed Budget Summary

5

Budget is Structurally Balanced

No Property Tax Rate Increase Proposed

Strikes Balance

Among Many Priorities

5


6 6

No proposed property tax rate increase for operations and maintenance or debt service

General Fund operating expenses (non-personnel) reduced 5% from FY 2013-14 base budget

Includes funding for first phase of market compensation study

Includes 31 new positions; 23 in the General Fund.

Including those required for mandatory programs and new facilities

Invests $1.2 million in equipment and initiatives

Maintains a 30% fund balance in General Fund

Equipment replacement program partially reinstated

$12.7 million in unmet needs remain unfunded

7


7

FY 2014-15 Proposed Budget General Fund Position Summary

8

8

General Fund Positions Proposed in FY 2014-15

Department Division Position

Public Works Engineering Senior Construction Inspector

Public Works Drainage Watershed Inspector

Police Department Patrol Police Officers (5)

Police Department Support Services Evidence and Property Technician

Library Services Westside Community Center Facility Specialist

Parks and Recreation Park Operations Foreman

Parks and Recreation Operations Equipment Operator

Parks and Recreation Operations Field Technician

Parks and Recreation Operations Maintenance Worker

Parks and Recreation Recreation Recreation Supervisor

Parks and Recreation Recreation Part Time Recreation Instructors (4)

Parks and Recreation Recreation Seasonal Recreation Attendants (4)

Planning and Community Development Environmental Health Animal Control Officer

•14 – Proposed positions associated with mandated MS4 program and new facilities •8 – P/T & Seasonal positions

FY 2014-15 Proposed Total City Budget

9

FY 2013-14 Adopted Budget

$135,499,825

FY 2014-15 Proposed

Budget

$138,712,269

$3.2M

or

2.4%

9

Expenditures

FY 2014-15 Proposed Budget

10 10

General Fund 37%

Capital Improvement

Fund 32%

Debt Service Fund 9%

Enterprise Funds 10%

Restricted Funds 12%

Total City Budget: $138.71 million Expenditures

General Fund Revenues

11


$45,996,156

FY 2014-15 Proposed

Budget

$49,594,501

$3.6M

or

7.8%

11

General Fund Revenues

12

FY 2013-14 Estimates

$47,436,306

FY 2014-15 Proposed

Budget

$49,594,501

$2.2M

or

4.5%

12

FY 2014-15 Proposed General Fund Budget

13

Property Tax 26.1%

Sales Tax 36.6%

Other Taxes and Franchise Fees

16.5% Licenses and Permits 5.3%

Charges for Services 6.2%

Fines and Forfeitures 2.1%

Parks and Recreation 2.6%

Interest Income 0.1%

Miscellaneous 2.9%

Interfund Transfers 1.6%

FY 2014-15 General Fund Revenue $49,594,501

13

14 14

Property Tax 9.2%

Sales Tax 2.7%

Franchise Revenue,

-2.8%

Building Permits 3.3%

Fines and Forfeitures

3.6%

Parks and Recreation

11.6%

-4

-2

0

2

4

6

8

10

12

General Fund Revenue Snapshot

Compared to FY 13/14 Estimated Revenue

General Fund Revenue Snapshot

15

Sales taxes – 2.7% net increase 7.5% growth after reduction for Ashley Furniture and May audit adjustment

Franchise revenue – 2.8% reduction Driven by New Braunfels Utilities declining water revenues from water restrictions

Parks and Recreation – 11.6% increase New revenue from Fischer Park pavilion rentals and Nature Center programming and events

15

General Fund Expenditures

16


$46,330,598

FY 2014-15 Proposed

Budget

$50,961,453

$4.6M

or

10%

16

17

General Fund Expenditures

Infrastructure 11.3%

Public Safety 57.3%

Quality of Life 12.9%

Growth and Development

5.4%

Effective Management

13.1%

FY 2014-15 General Fund Expenditures by Strategic Priority $50,961,453

17

General Fund Summary

18

Description Amount

Total Revenue $ 49,594,501

Total Expenditures $ 50,961,453

Fund Balance Drawdown $ 1,366,952

One time expenditures proposed in FY 2014-15 $ 1,387,250

18

19

General Fund Summary

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

45,000,000

50,000,000

55,000,000

60,000,000

FY 2008-09 Actual

FY 2009-10 Actual

FY 2010-11 Actual

FY 2011-12 Actual

FY 2012-13 Actual

FY 2013-14 Estimate

FY 2014-15 Budget

Revenues Expenditures Fund Balance

30 % of total expenditures

19

FY 2014-15 Proposed Budget - Compensation

20

Market Study – analysis of New Braunfels’ compensation plans against comparator cities Employee guided process through three committees

Committees developed pay and step plans that represent 100% implementation • $4.5 million – approximate full implementation cost

across all City funds • Phase 1 implementation – 40%

Behind Market (on average)

Non-Uniform Employees 14.8%

Police - Uniform Employees 17.6%

Fire - Uniform Employees 22.3%

20

FY 2014-15 Proposed Budget - Compensation

21

All employees moved to new pay plans at 40% of ultimate implementation Non-uniform employees receive a minimum 4% increase Public safety step plans adjusted to market in compliance with Civil Service Rules

Proposed implementation of signing bonus to address Police recruitment $1,869,000 – Impact to the General Fund

64% for uniform Police and Fire employees 36% for non-uniform employees

21

FY 2014-15 Proposed Budget Employee Healthcare

22

City is self-insured for employee medical/dental/vision coverage. City and employee share in premium costs.

Currently developing multi-year strategy to achieve the following goals: • Complying with health care legislation • Evaluating plan value and design comparable with the

market • Adding a consumer driven health plan • Managing the financial impact to employer/employees • Exploring joint partnerships with other entities • Exploring healthy living premium incentives

22

FY 2014-15 Proposed Budget Employee Healthcare

23

In FY 2014-15: All premiums increase for Plan A (higher cost, lower deductible plan) Deductible/maximum out of pocket increases in Plan A Family coverage premium increases for plan B (lower cost, higher deductible plan) Changes to prescription plan including mandatory generics (both plans)

23

24

FY 2014-15 Proposed Budget Enhanced/New Services– Police Department

Increased presence of officers on patrol in the community • Five new Police Officers ($634,065

includes vehicles and equipment) • Brings police force to an authorized 112

sworn positions • Police force will have increased by 28

sworn personnel or 33% since FY 2005-06

Support evidence and property management increased workloads ($33,375)

• One Evidence and Property Technician

FY 2014-15 Proposed Budget Enhanced/New Services– Public Works

25

Compliance with Municipal Separate Storm Sewer Program (MS4) ($111,950)

• One Watershed Inspector • Professional services/surveys

Increased customer service to subdivision, commercial and utilities inspection work to meet growing demand ($71,575 includes vehicle and equipment) • One Senior Construction

Inspector

25

26

FY 2014-15 Proposed Budget Enhanced/New Services– Library

• Increased programming and facility management at

the Westside Community Center ($25,875) • One Facility Specialist

• Increased Library materials budget by 5.5%

27

• Fischer Park Nature Center – City staff will manage the nature center, programming and equipment rentals ($51,050 – Net cost for staffing and operations)

• One full time Recreation

Supervisor • Four part time Recreation

Instructors • Four seasonal Recreation

Attendants

FY 2014-15 Proposed Budget Enhanced/New Services– Parks & Recreation

27

FY 2014-15 Proposed Budget Enhanced/New Services– Parks and Recreation

28

Fischer Park and Walnut Avenue Maintenance & Operations

$433,445 includes personnel, operating and capital equipment

$175,428 for employee expenditures One Parks Foreman One Equipment Operator One Field Technician One Maintenance Worker

$154,572 for operating expenditures $103,445 for capital equipment

Additional funding for contracted mowing services for Walnut Avenue

28

FY 2014-15 Proposed Budget Enhanced/New Services– Planning

29

Maintain Animal Control customer service to meet increased demand ($68,150 includes vehicle and equipment)

• One Animal Control Officer

Picture from Joe

29

FY 2014-15 Proposed Budget Major Equipment and Initiatives – General Fund

30

Pavement management software upgrade and updated street survey - $185,500 Fund traffic calming projects - $54,000 Additional street repair funding - $65,000 Wild land gear for Fire Department personnel - $30,000 Real-time flood gauges - $49,500 Library carpeting and meeting room improvements - $93,100

30

FY 2014-15 Proposed Budget Major Equipment and Initiatives – General Fund

31

Parks and Recreation program registration and reservation software - $75,000 Westside Community Center building improvements - $61,000 First phase of Comprehensive Plan update - $100,000 Additional funding to continue on demand bus service through AACOG - $70,000

31

FY 2014-15 Proposed Budget Major Initiatives – General Fund

32

• Partial reinstatement of the equipment replacement program - $300,000

• Full program contribution - $875,000 • A limited number of eligible replacement vehicles will be replaced in FY 2014-15

Original Vehicle Replacement Schedule

Fiscal Year Number of Vehicles

Approximate Cost

FY 2014-15 40 $1,459,000 FY 2015-16 71 1,980,000 FY 2016-17 15 575,000 FY 2017-18 18 672,000 FY 2018-19 13 634,000 Total 157 $5,320,000

32

General Fund Summary Growth vs. Unmet Needs

33

40,000,000

45,000,000

50,000,000

55,000,000

60,000,000

65,000,000

70,000,000

FY 2014-15 Projection

FY 2014-15 Budget





Revenues Baseline expenditures/current level of service and resources Baseline expenditures including unmet needs and increased demand for municipal services

Financial Forecast assumes current unmet needs phased over five years

33

FY 2014-15 Property Value

34

Total Values $4.996 Billion

Increase in valuation $559.4 Million

Increase from prior year 12.6%

Increase from prior year excluding TIRZ

10.0%

New Construction $163.4 M = (29%)

Existing Properties $268.8 M = (48%)

TIRZ $127.2 M = (23%)

34

FY 2014-15 Proposed Tax Rate

35 35


Current and Proposed O&M rate 27.8079 cents Current and Proposed Debt Service rate 22.0151 cents Total Proposed Tax Rate 49.8230 cents

No increase from FY 2013-14 rate

Additional debt service requirement completely absorbed

by property value growth in FY 2014-15

36

Tax Rate Requirement and Debt – 2013 Bond Program FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 FY 2018-19 Total Projected Incremental Tax Increase

1.109 ₵ .558 ₵ 3.610 ₵ 1.651 ₵ .262 ₵ 7.190 ₵

G.O. Bonds Issue Assumptions

$14,500,000 $15,493,500 $28,150,000 $18,270,500 $9,586,000 $86,000,000

36

Tax Rates – Comparator Cities

37

$0.49823

$0.00 $0.20 $0.40 $0.60 $0.80 $1.00

Grapevine Conroe

Round Rock Georgetown

Flower Mound Euless

Cedar Park Bedford

Schertz New Braunfels

Austin Seguin

San Marcos Missouri City

Allen Galveston

San Antonio Pflugerville

North Richland Hills Leander Rowlett

Baytown

FY 2013-14 Adopted Tax Rates

FY 2013-14 Adopted and FY 2014-15 Proposed

37


38

General Fund Debt Service Total FY 2006-07 Rates $.327016 $.082846 $.409862 FY 2007-08 Rates $.294862 $.115000 $.409862 FY 2008-09 Rates $.282179 $.127683 $.409862 FY 2009-10 Rates $.282179 $.127683 $.409862 FY 2010-11 Rates $.261362 $.148500 $.409862

FY 2011-12 Rates $.261362 $.187000 $.448362

FY 2012-13 Rates $.268564 $.198780 $.467344

FY 2013-14 Rates $.278079 $.220151 $.498230

FY 2014-15 Effective Rate $.469500

FY 2014-15 Rollback Rate $.524300

FY 2014-15 Proposed Rates $.278079 $.220151 $.498230 38


39

$-

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

Tax

Rat

e

City of New Braunfels Tax Rate General Fund Rate Total Tax Rate Debt Service Tax Rate

39

40 FY 2014-15 City Manager’s Budget 40

FY 2014-15 Proposed Budget

Other Funds

River Activities Fund

41

River Activities Fund FY 2012-13

Actual FY 2013-14

Estimate FY 2014-15

Budget

River Management Fee $197,315 $414,100 $414,100

Parking Revenue 0 191,000 191,000

Other Revenue 71,367 66,000 66,000

Solid Waste Transfer 116,100 120,000 125,000

General Fund Transfer 551,296 168,992 155,027

Expenditures – (River Activities Fund) $936,078 $961,088 $951,127

General Fund transfer reduced by $382,300 in FY 2013-14 (estimate)

41

FY 2014-15 Proposed Budget New Braunfels Airport

•$2.7M proposed expenditures

•Revenues and expenditures driven by fuel sales

•Includes transfer to General Fund for administrative services ($55,426) and contribution for debt service on hanger ($107,938)

•Debt service for property purchase and Airport improvements fully funded by lease revenues ($209,207)

•Includes revenue from General Fund payment for CTTC and ground lease ($146,500)

42 42

FY 2014-15 Proposed Budget Landa Park Golf Course


•Revenues and staffing reflect financial pro-forma

•New Braunfels 4B Board contribution of $290,500 to partially fund debt service

•Added staffing for increased customer service and higher level of maintenance ($113,700):

•One Maintenance Worker •One part time Maintenance Worker •One Equipment Technician •Two part time Golf Cart Porters

43 43

FY 2014-15 Proposed Budget Civic/Convention Center

•$650,275 proposed expenditures

•Funded by rental revenue and contribution from the Hotel/Motel Fund

•$225,000 to replace all Civic/Convention Center banquet chairs from Hotel/Motel Fund 44 44

FY 2014-15 Proposed Budget Solid Waste


•2.7% increase in projected revenue

•No fee increases proposed

•Includes contribution to debt service for Public Works facility land and design ($76,457)

•Meet existing and growing service demands of the recycling division and expand brush and bulky item pickup ($100,046):

• One Recycle Center Foreman • One Recycle Center Refuse

Collector • One Solid Waste Operator

45 45

Scout

FY 2014-15 Proposed Budget Debt Service Fund

• Total debt service: $13,247,729 • Increase of $1,614,379 or 13.9% from FY 2013-14, driven

by: • 2014 Certificates of Obligation ($10.1 million)

• Golf Course Improvements • Airport property/buildings acquisition and

improvements • Paid by revenue from these funds

• 2013 Bond Program ($14.5 million)

• Funding for all four propositions included in first issuance

• No tax rate increase proposed for debt service

46 46

FY 2014-15 Proposed Budget Capital Improvement Project Funds

$43.5 million appropriated for project costs in all capital improvement project funds

• 11 Capital Improvement Funds included

• 2013 Bond Program – includes an anticipated issuance of $15.3 million in FY 2014-15

47 47

Initiatives Requiring Further Analysis in FY 2014-15

48

• Police staffing levels • Police Criminal Investigation Division assignment pay • Fire Department Support Services compensation • Investigate alternative delivery methods for river

security detail and custodial services • Long term strategy for managing health care costs

48

Future Year Budgets Priorities and Challenges

49

• Full implementation of the market compensation study • Full reinstatement of the equipment replacement program –

requires an additional $575,000 in recurring expenditures • Reestablishment of a Facilities Maintenance Fund • Managing health care costs • Unmet needs

• $12.7 million of identified unmet needs in FY 2014-15 ($10.7 million in General Fund departments)

• Includes 46 position requests across all General Fund departments

49

Budget Schedule Summary •Council Work Sessions @ 3:30pm

•Tuesday, August 12

•Wednesday, August 13

•Thursday, August 14

•Monday, August 18

•Tuesday, August 19

•Public Hearings @ 6:00pm

•Thursday, August 28 •Tuesday, September 2

•Budget Adoption @ 6:00pm

•First Reading – Tuesday, September 2 •Second Reading – Monday, September 8

50 50

FY 2014-15 Proposed Budget and Plan of Municipal Services

Questions?

51 51

52

Dates Requirements Monday, August 11 Submission to Council of Effective and Rollback

Tax Rates, Statements and Schedules Submission and Presentation of FY 2014-15

Proposed Budget Council discusses tax rate and, if proposed rate

will exceed the rollback rate or effective rate (whichever is lower), recorded vote is taken .

Council sets time and date of public hearings on the FY 2014-15 Proposed Budget and the time and date of the meeting to discuss the tax rate.

August 12, 13, 14, 18,19

Council work sessions on FY 2014-15 Proposed Budget.

Sunday, August 17 Notice of Public Hearings on the FY 2014-15 Proposed Budget and Tax Rate

53

Dates Requirements Sunday, August 24 Notice of 2014 Tax Year Proposed Property

Tax Rate

Thursday, August 28 First Public Hearing on the Proposed Tax Rate; schedule and announce meeting to adopt tax rate

Public Hearing on the FY 2014-15 Proposed Budget

Tuesday, September 2 Second Public Hearing on the Proposed Tax Rate; announce meeting to adopt tax rate

First reading of ordinance to adopt the Budget First reading of tax ordinance

54

Dates Requirements Monday, September 9 Council adopts FY 2014-15 Proposed Budget;

second reading of budget ordinance; ratifies property tax revenue increase reflected in the budget (if needed).

Meeting to Adopt Tax Rate; second reading of tax ordinance (must be between 3 and 14 days after Second Public Hearing.

Documents

2014 15 budget presentation