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City of Annual Budget Workshop M2007-W-06 City Council Chambers August 13, 14, & 15, 2007 I. CALL TO ORDER With a
quorum present, Mayor Raul G. II. PLEDGE OF ALLEGIANCE Mayor
Raul G. III. ROLL CALL for In attendance: Raul
G. Mike Garza, Council Member, District I Hector Garcia, Council Member, District II Johnny Amaya, Council Member, District IV Johnny Rendon, Council Member, District V Gene Belmares, Mayor Pro Tem, District VI Juan Chavez Council Member, District VII Juan Ramirez, Council Member, District VIII Gustavo
Guevara, Jr., Horacio De Leon, Assistant City Manager IV. COMMUNICATIONS NONE. V. DISCUSSION AND POSSIBLE ACTION
REGARDING THE PROPOSED FISCAL YEAR
2007-2008 ANNUAL BUDGET. A. Introduction of the budget by City Manager vision and goals. “In accordance with the City of October1,2007
through expenditures and
transfers totaling $404,059,036, a $10.9 million or 2.8% increase from 2007. The total net operating
budget, excluding operating transfers, is $324,589,860. The
total proposed ending balance for 2008 is $102,197,987, representing
an increase of $2.7 million or 2.7% from the 2007 ending fund balance and 3 1.4% of the total net operating
budget. This financial statement represents the hard work and commitment of City staff
to develop a budget that addresses the challenges associated
with the growing needs of our community. The budget reflects my commitment to provide a higher
level of service, with an emphasis in
addressing those basic services
related to street improvements, water, sewer and public safety. Tax Rate The proposed tax rate for 2008 is
projected to remain at the same rate as 2007 at $0.63700 per $100 assessed valuation.
The 2008 property values are projected to increase by
12% over the estimated 2007 amended valuations. The total taxable value of $9.4 billion will generate a
proposed levy of $59.6 million, representing an increase of $6.1
million or 11.5% over the 2007 levy. The proposed levy excludes an estimated
amount of
$251,156 for the tax freeze approved by Council for taxpayers 65 years of age and older. The proposed maintenance and operations
tax rate allocation of .513745 will generate a total revenue of $46.8
million for General Fund for 2008, signifying a $5 million or 12% increase over the
2007 estimate. The proposed debt service tax rate
allocation of -123255 will generate a total revenue of $11.2 million fox 2008, a $1.08
million or 10.6% increase over 2007 estimate with a proposed
97.25% collection rate. Total collections for 2007 are estimated at $51.9 million,
representing 97.08% of the adjusted levy. Staffing and Benefits A total of 2,473 111 time equivalent positions are included in the 2008 budget at an estimated cost
of $138,985,929. Incorporated
within this budget is a 2% cost
of living adjustment to become effective increase for
all non-civil service employees at an estimated cost of $959,973. A $5 increase for health and benefits
is proposed for each of the following items: (1) City's contribution
for employee coverage; and, (2)
City's contribution for dependent coverage. This cost is estimated at $217,055. In line with the directive to improve
basic services, the 2008 budget
reflects the creation of 6 new street sweeper driver positions
for the is in addition to the 29 FTEs for the through combination
tax and revenue Certificates
of Obligation for 2007. The following table summarizes
the proposed new and deleted positions by department for 2008:
*Represents the City’s 29% contribution of
total costs: 71% or $555,000 is grant funded.
General
Fund General Fund revenues for 2007 are estimated to total $1 19,995,953, a $5.2 million or 4.5%
increase over 2006. Estimated
expenditures for 2007 are
estimated to total $119,112,845,
excluding a one time drawdown of $1,425,000 from fund balance. This represents
an increase of $1 1.1 million
or 10.2% over 2006. The estimated ending fund balance of $20,547,3 12 represents a 16.6% of
total expenditures excluding operations transfers out. The proposed 2008 budgeted expenditures are
$128,618,687 reflecting an increase of $8.6 million or 7% over
2007. Current 2007 sales tax revenue for
General Fund is estimated to total $25.4 million, representing a shortfall of $1.168
million from that previously budgeted.
Sales tax growth is at
6.25% rather than that at the 12% initially projected. A 12% increase was budgeted in
2007 due to the 13.5% growth in sales tax experienced in 2006 from 2005. The proposed sales tax budgeted for
2008 is $27.4 million representing an increase of 8% or $2 million over the 2007
estimate. General Fund receives fifty percent
(50%) of bridge toll receipts.
Estimated transfer for 2007 is $19,191,551 a shortfall of
$884,065 or 4.4% from budget. The 2008
proposed transfer of $22,287,269 will be realized by
the toll rate increase proposed by the Bridge
Department. Revenue will increase by
$3,095,712 from 2007. General Fund expenditures increased
$9.1 million from the 2007 original budget.
The categories which will have a
significant impact (increase) are as follows: Personnel $4,052,690 Materials & Supplies $ 793,621 Contractual Services $1,290,837 Other Charges $2,512,442 Investing to Our Infrastructure On following table illustrates the
proposed activities and corresponding amount:
Drainage 18,654,000 Fire 850,000 General Government 2,607,000 Parks 16,050,000 Streets 17,096,745 Landfill 4,600,000 Waterworks
7,453,500 Wastewater
7,145,500 Equipment 13,891,775 Drainage, water and wastewater system
enhancements continue and will allow for the community to prepare for and maintain
its prosperity in the future. Current
challenges with drainage and flooding during
significant rain events will be addressed and solved on a short and
long-term basis. Projections remain on a positive level
and the community is expected to see continued investment
from outside firms as well as additional population increases. With this comes the need
to expand current systems to be able to meet the needs of these new consumers. Some of those projects include the expansion
of the current water and wastewater treatment facilities and the
replacement of an installation of new water distribution
and wastewater lines. Quality
of Life Parks and Recreational Facilities The development and creation of park
and recreational amenities continue to top the list of
priorities with $5.7 million budgeted in FY2006 and $16.05 million in
FY2007. This includes projects
such as the construction of a municipal golf course, Independence Regional Park, El Eden
Recreational Center Phase II, the Northwest Recreational Center and the Police Providing for the public safety of the
residents and visitors remains a tope priority with 420 police
officers budgeted for FY2008. During
FY2007, nine additional police officers were
added to the General Fund. We are
proposing to add an additional 33 officers in
January of 2008 at a cost of $1.5 million.
This is contingent on the approval by City
Council to increase bridge toll revenues the latter part of FY 2007. A total of 27 officers are being
transferred to General Fund after completing their third year with the
COPS Universal Hiring grants. Total
cost for these officers is $1.8 million of which $1.4 million will be
funded through the current match; $443,198 is the cost to the
General Fund. The Police Department’s
budget of $44.3 million represents 34.4% of the City’s total 2008 General
Fund budget, excluding the $1.5 million for the 33 additional officers. Fire The City of Department’s budget of $32.7 million,
representing 24.4% of the City’s 2008 General Fund budget. During 2007, the Emergency Response” (SAFER) Program
fund providing for the staffing of an additional 15
firefighters. The academy is scheduled
to start on 23 cadets. This will boost the Organizational
Infrastructure The firm of Waters Consultant Group was
contracted to conduct a feasibility study of the City’s
organization during June and July 2007.
A comprehensive report of their observations, findings and
recommendations will be presented to City Council during the annual
budget workshops on August 13, 14, 15, 2007.
Recommendations include consolidation of departments, upgrading
of positions as well as the elimination of positions of
streamline the City’s organizational structure and enhance operations. Plans are to implement these recommendations
on October 1, 2007. Economic
Prosperity During FY2007, hotel accommodation and
tourist offerings increased with the addition of three new
hotels adding a total of 287 rooms to the current inventory. These included the
Holiday Inn Express, Comfort Suites and Value Place Inn. With the recent hotel
expansion there are a total of 4,081 rooms in the market and 44 hotels. From 2003 – 2007, this market saw a
significant increase of 1,181 total rooms constructed. This is an average of about 3 hotels
constructed per year, signifying major capital investment
from industry sources. Major brand
names came with the expansion from Hilton and Marriot. Of significant importance to our
community is the recent announcement that the Eagle Copper Tube
Company will be constructing a manufacturing plant on a 75 acre tract at phase will be
added at this location once the plant is fully operational. Legislative
Issues The City set out to make its priorities
know to on state and
federal agendas approved by Council in August of 2006. Efforts included setting up preliminary meetings with
each office to inform them of our priorities and working with legislative staff during
the
session
of Congress to keep the City’s priorities on track and in focus. Legislative activities
were coordinated in conjunction with the City’s consultants. While these actions served as an important step in
the bill making and appropriations process, the City’s legislative trips to the state
and nations capitols serve a crucial role in getting our priorities heard and in acted in
several instances. In January 2007, the Mayor and Members
of the staff attended a three day schedule of
back-to-back meetings with individuals from the Governor’s Office, Lt. Governor’s
Office,, Speaker of the House, chairperson of committees and state agencies such as
Texas Department of Transportation, Commission on Environmental Quality and
the Texas Department of State Health Services, among others. Of significant during the trip to Webb County officials, namely the newly
elected Judge Danny Valdez. This same
trip was replicated in of Council and City staff met with
White House staff, members of congress; including our two Department of State, Department of
Homeland Security, Department of Commerce and Federal Railroad Administration among
others. The City has seen direct
benefit from
these legislative trips in the
form of grant allocations and legislation to advance our priorities. Most importantly, these trips allow
delegates to convey, on a personal level, our needs for
our City and how the community is impacted by certain legislation. Of importance to note, this year’s the usual
two-day schedule. Overall, this
allowed the City delegation to have more meetings with
high level officials. The City of legislative process and bring about a
higher level of awareness of our community’s legislative
issues. Closing
Comments Laredo continues to report tremendous
growth, making it imperative that basic services related to
infrastructure be addressed and opportunities to promote improved quality of life, public
safety and economic diversity be supported.
The City of Budget represents a balanced budget
that appropriately addresses the community’s needs and reflects City Management’s
continuing commitment to provide for a higher level of
service.” Sincerely, B. Update on One Stop Shop. Erasmo A.
Villarreal, Purpose To facilitate orderly development from platting to building. Objective To have all staff involved in the development process located in one place.
Key Points Worked with the Laredo Builder’s Association Development Committee to formulate One Stop Shop in Reduce plat processing time by having staff at one location (save 3 to 4 months) Combine Utility Coordination with Technical Review Board.
Have engineer & developer present at Technical Review board.
The new software for building permits will include fire department permits and will add new module for tracking plats. Click to govwillallow on line capability to track building inspections by contractors. Create geographic information system. Consolidate code enforcement and cross train inspectors to operate seven days a week, have presence
from Cm. Chavez instructed staff to look at
the possibilities of initiating the One-Stop Shop location at
the base and begin negotiations with the Laredo possibilities of using one of the structure next to the Laredo Development Foundation. Also to transfer the employees of the Administrative Services Department to the Bruni Library Bldg instead of housing them on
Motion to approve. Moved: Cm. Garcia Second: Cm. Chavez For: 8 Against: 0 Abstain: 0 Motion to limit the CIP Presentation to the CIP of 2007-08 only. Moved: Cm. Landeck Second: Cm. Amaya For: 8 Against: 0 Abstain: 0
C. Update on Capital Improvement Project, Current Bond Projects. This item was heard on
D. Proposed Re-Organization Plan by Mr. Ted Benavides, Water’s Consultant Group. recommendations to certain departments. He noted that he has already reviewed the plan with Mr. Benavides and is concerned about for the individuals that might be moving up or down. Ted Benavides, Water’s Consultants Group, said that the Water’s Group was asked to look at the organizational structure to see if they could suggest improvements with the services, service delivery to internal/external customers and to try to create a leaner organization. The methodology was construed by talking to the City Council Members except for Council Member Johnny Amaya. He continued by saying that he has interviewed each and every City Manager and department directors. They have also reviewed all the budgets and organizational charts including data, personnel, staffing information and they have compared the
City of compare how the City relates to others in practices. He added that he has met with the City Manager staff and outlined the course of action and a time schedule. They also interviewed and benchmarked all the organizations. He continued to say that they have compared
salaries to the Water’s Consulting Data Base for all explained that they have many recommendations for Council to consider. Motion to present this item as a workshop to City Council. Moved: Cm. Garcia Second: Mayor Pro Tempore Belmares For: 8 Against: 0 Abstain: 0 E. Proposed General Fund highlights. Consolidated
Budget Total Available $506,257,023.
General Fund $149,165,999 Special Revenue Funds $81,845,928 Debt Service $34,037,834 Capital Improvements $3,037,311 Other Programs $1,030,643 Permanent Fund $118,964 Consolidated
Operating Revenues $406,802,094 General Fund 32% Hotel Motel 0% Sports & Community 2% Risk 1% Fleet 2% Special Police Programs 1% Other 3% Sewer 4% Health & Benefits 4% Transit System 6% Water 9% Bridge 11% Debt Service 12% Consolidated
Operating Expenditures $404,059,036 General Fund 32% Sports & Community 1% Hotel Motel 1% Risk 2% Special Police Programs 2% Fleet 2% Health 3% Sewer 4% Health & Benefits 4% Other 5% Transit System 6% Water 9% Bridge 11% Debt Service 11%
Total Closing Balance (All Funds) $102,197,987 General Fund 20.11% Special Revenue Funds 27.68% Debt Service 5.31% Enterprises Funds 45.17% Internal Service Funds 1.60% Permanent Funds 0.11% Other Programs 0.01% FTE
History (All Funds) FY04-05 FY 05-06 FY06-07* FY07-08* Transit 179.31 179.31 179.31 179.31 Other 1,104.21 1,123.15 1,129.98 1,098.90 General 1,265.89 1,289.47 1,335.62 1,373.37 *Amended *Proposed General
Fund Revenues Taxes 60.4% Charges for Service 24.8% Franchise Fees 5.4% Licenses & Permits 4.8% Fines & Forfeits 1.9% Parts & Royalties 1.4% Fees & Collections 0.5% Intergovernmental 0.4% Reimbursements & Misc. 0.9% Other Financing Sources 0.0%
General
Fund Major Revenues FY06-07 FY07-08 Property Taxes 41,820,422 46,819,662 General & Use 25,478,048 27,457,139 Bridge Transfer 19,191,551 22,287,269 Electric System 4,630,765 4,769,687 Municipal Court 2,531,958 2,504,758 Tax
Rate History FY05-06 FY06-07 FY07-08 Debt 0.124981 0.123255 0.123255 M & O 0.508677 0.512019 0.513745 Tax Collection Rate on Original Levy FY04-05 96.63% FY05-06 96.64% FY06-07 97.03% FY07-08 97.25%
Valuations FY 04-05 $6,761,295,604 FY 05-06 $7,431,482,261 FY 06-07 $8,403,938,776 FY07-08 $9,410,538,322
Sales Tax Trend History FY05-06 FY06-07 FY07-08 Arena’s $5,965,748 6,498,524 7,050,897 Transit’s $6,658,730 5,797,040 6,173,848 Allocation $23,928,715 25,478,048 27,457,139
General
Fund Expenditures by Activity Public Safety-Police/Fire 59.9% General Government 13.5% Cultural & Recreational 9.1% Other Financing 8.8% Health & Welfare 0.6%
General
Fund Expenditures by Category Personnel 73.78% Contractual Services 12.94% Intergovernmental Transfers 5.78% Materials & Supplies 5.49% Other Charges 2.89% Capital Outlay 0.02% Debt Service 0.08%
Personnel Cost by Activity FY05-06 FY06-07 FY07-08 General Govt 9,931,941 12,210,044 13,300,839 Public Safety 60,321,876 65,810,289 70,470,963 Full
Time Equivalents FY05-06 FY06-07 FY07-08 Public 67.50 68.50 73.50 Culture & Recreation 199.18 208.33 209.83 General Government 242.79 231.54 231.74 Public Safety 780.00 827.25 855.25 Health and Welfare 3.05
F. Bridge Department funding and operations. This item was not heard. G.
This item was not heard. H. Parks & Recreation Department funding operations. This item was not heard. I. This item was not heard. J. This item was not heard. K. This item was not heard. L. This item was not heard. M. This item was not heard. N. Police Department funding and operations. This item was not heard. O. This item was not heard. P.
This item was not heard. Q. Transit/El Metro funding and operations. This item was not heard. R. Funding and operations of the Mayor and City Council, City Manager’s Department, Department, Information Technology and
Support Services Department, Convention and Visitor’s Bureau Department, Department, Party Funding. This item was not heard. Motion to adjourn. Time: 9:25 p.m. Moved: Cm. Garza Second: Cm. Rendon For: 8 Against: 0 Abstain: 0 |