San Angelo City Council Budget Workshop 8-8-17

[0:00:00] I'm going to call the meeting to order it's 8:30 on Tuesday August the 8th and we'll call the meeting to order anybody who has your cell phone please turn the cell phone off if you would and we will start this workshop agenda a is to the session and consideration matters regarding the fiscal year 2017 18 budget preparation including but not limited to major funds revenue and expenditures and other items needing council direction all right okay well we're going to get started this morning by just quickly going through our budget process and calendar just as a reminder for where we start out in April we start out there with training for the department's our budget stuff oh sorry I'm looking at my screen y'all can't see it and so we started on April with training for the departments and divisions our budget staff conducts that training and we also hand out the revenue packets where we ask our department directors and managers to estimate their revenue for the upcoming year then in May we hand out our expenditure packets where we ask our directors to project their expenditures and justify what those expenditures are for the coming year we hand out the salary and benefit reports the targets and things like that and and they get those back to us and then in June we sit down and review all the information with the city manager's office our budgets to our budget review team includes the budget staff myself and of course CMO and then we also begin sending out council memos in June to get you started on information that we see upcoming in the upcoming budget year in July we continue those council memos on each Friday to continue to feed you information so that you're aware of everything that we're expecting what's going on and then in August of course we start our workshops this being the first of our budget workshops for this year and we also begin our public hearings on the fifteenth we'll have our first

[0:02:02] public hearing where we can allow the citizens to come and discuss our proposed budget and tax rate and it's in September we continue those public hearings for to allow for more public discussion and then of course we adopt the budget and the tax rate by ordinance so that's our process you'll have any questions on how all that works we can move on okay so today we are going to discuss the major funds revenue and SMX pitchers our major funds this year of the state office building the airport solid waste stormwater water wastewater Civic events Fort Concho hotel occupancy tax and Development Corporation we have information on all of those funds we won't spend too much time on state office building storm water or waste water just because there's not a whole lot going on there but we certainly have that information available should you have any questions for us on that so we'll start out here with the airport fund so we're not a lot of changes this year with the airport fund and oh and let me just say here that we do have the department directors and managers here should you have any specific questions related to their operations or anything like that but again the airport fund not too many changes they do have some additional lease revenue this year so that increased their income a little bit the revenue and they also had a little bit of additional revenue for concessions and they use that to that to redouble their maintenance schedules and to provide for more operational capacity out at the airport next we have the solid waste fund again not a whole lot of change there was a solid waste fund they do budget revenue over expenditures in the solid waste fund in an effort to build their fund balance because they do expect you and need a permit in the in the future I think they're trying to build that fund balance up over a period of eight years to allow them to build up the capacity to purchase that permit in the future the water fund here we have again budgeted revenue over expenditures

[0:04:08] in line with the water right study so we're trying to grow that fund balance so that they have the capacity to operate in a manner that is efficient and effective they do have an increase as well in their expenditure budget that is largely due to debt service payments for the Ford ranch the Civic event son we did make a change this year with civic events fund that's fund for ten historically we have accounted for civic events and hotel occupancy tax in the same fund we've decided the for accounting purposes and to make it more transparent that we're going to pull out the hotel occupancy tax into its own special revenue fund so that all hotel occupancy tax will now go into fund 605 and then from there it will go out to the different stakeholders that we have as well as civic events fund so that would just be an income stream a revenue into civic events fund from the hotel occupancy tax fund again hotel to the CTX fund is one of our major fund so we'll see that in just a moment as well Fort Concho not a lot of changes in Fort Concho fund but it is one of our major funds so we do put it up here and allow you to see the activity that's happening there this coming year again hotel occupancy tax fund and this is where we've moved all of our you'll see our revenue is the hotel audience e-tags that we have budgeted for revenue for next year and then the expenditures would just be again those external partners and the transfers to other funds which would be our Civic event fund Fort Concho Texas Bank Sports Complex those those partners that we have there you do see that we have revenue budgeted under expenditures this fund we do expect to draw down funds this year for this fund and we have met with city manager's office and our external stakeholders and we have built up that funds fund balance in the past because we had some good years we're looking forward to hopefully having another good year but in the in

[0:06:12] the event that we do not then we do expect to possibly draw down that fund balance a little bit to fund those operations and we will be meeting with those stakeholders and city manager's office again in March to discuss that to see where we are and make sure we keep on track with our plans for that fund Development Corporation and they are budgeting their revenue down this year you know the develop corporation is funded by the sales tax and so they're being cautiously optimistic and budgeting down a little bit that is not what we are budgeting for the general fund but they feel like that's achievable and so of course their expenditures are budgeted down in correlation with that so that's all of the major funds that we have to discuss and we'd be happy to go back through them a little more slowly talk to department directors and managers whatever you your appetite would be for discussion with those or I'm not sure whom I assume everyone goes through the as a part of the process to look at things that may need to be added or increased things that may no longer need to be done that may be decreased just from a process standpoint I guess when and how is that done to be sure that we're being as wise as possible with with the tax money we receive sure so I'm in your let me go back to your budget calendar here so that would occur in April and May when we send out the revenue packets and the expenditure packets as far as tax is concerned though we're not discussing that today

[0:08:15] that would be our discussion when we discuss the general fund in two weeks we're having to discuss it now and answer any questions you have of course but these are more of our enterprise funds that are expected to operate on their own revenue streams that's the intent anyway sure okay when I was really more concerned about process of everybody saying okay we know we have this expenditure we can match up this revenue but we may need to decrease here we don't need to do this anymore but you're saying that happens in the April and May time frame yes sir okay thank you Tommy will also look at those items during the city manager review period you know so even though directors may look at it and determine the care these are the areas what we feel we can come up reduce our expenditures we actually look a little bit more deeply during a city manager reviews as well to question those items in addition our budget staff really hones in on once we receive those estimates we would be that on a very regular basis ever and after we close every month we go in and see you know what's the trend this year what do we expect to happen next year if we feel like we should increase or decrease a revenue or expenditure based on that information than we get with the department director or manager and discuss that with them they may have information that we're not aware of we may have information that they're not aware of and so we definitely we're very closely in tune with what what their needs are and trying to budget accordingly we also do have a process for for target increased request and so the departments are whenever we hand out expenditure packets if they feel like they need more money in their budget for some reason then there's a form that they can fill out and they let us know what those needs are and we discuss those as well in our budget review process of the city manager's office so we always start with last year's numbers and use that as the basis for what we're planning for the next year for the most part so if we go through this one area at a time starting with the airport fund talk through the increase opportunity and leases and concessions the $60,000

[0:10:22] tell me about that can I get Lou up here to talk about your new lease okay good morning good morning in concessions we have one additional hanger that we leased out this year the large what we call the am come south hanger they released on a month-to-month basis and that was the increase in rent for this coming year and that's the only thing where you see an opportunity for increased revenue at the moment yes and how about concessions any opportunity for increased concession we already included the the allotted amount where we estimate for next year there was that equal to last year's or an increase in last year there was an increase of twenty thousand dollars for concessions from last year and that's based on what trends from this year especially rental cars revenue okay and there's no other opportunity for increase in revenue not at the moment in concessions nothing same amount of vending machines yes no new vending machines what's the profitability on vending machine we're running around a 20 percent return on investment but we need to recover our investment that we made this year for those vending machines and those were what around five thousand dollars and that was what two vending match to candy machines and we leased those or we buy those we bottle low can you tell us what's included in your concessions revenue is that just vending machines or is there something else as well we have just primarily rental cars in concessions car rentals and we also have the two restaurants and those are leases the restaurants are leases and the car companies give us what the rental companies we have five rental companies Avis Hertz budget and $15 and they pay us a lease

[0:12:26] yes it's a concession lease we have a minimum guarantee plus or a percentage whichever is greater and the other is one the two restaurants what used to be above the clouds and that has an open yet but it will reopen pretty soon in Mathis field cafe and those are Lisa those are leases again those are leases concessions so there's a minimum guarantee or a percentage of revenue whichever is greater is there any risk in the revenue forecast here no very conservative on that and what would you say the biggest opportunity is over and above what you have budget land leases in the future especially non aeronautical all right on personnel you have an increase of 29,000 and tell me about that as well as the operations and maintenance I'm assuming is at 53 on personnel we use those numbers that come from HR so we stick with those numbers and on maintenance we estimate what we going to have for next year and that it's very detailed in the today does counsel have the detail package no no I've been very detailed as one can counsel receive this so they can see all the detail that I have for the personnel increases are you you are funding a position that you've held open because of lost revenue in the past is that right those positions have held hoping but the positions has always been there we never deleted those answers okay but that's the increase is that when he lost a key tenant in the past he defunded a couple of positions and did not refill them when they came open and so that his maintenance has been suffering as a result and so I think this year you're picking your going to refill one of those positions correct correct that's that's the personnel increase you ask okay yep you'll also see some personnel increase probably and

[0:14:28] all of our funds do to increase health insurance premiums and benefits but those haven't been voted on right so you Jennifer not voted they were voted on in the prior year so they increased last year they increase our targets for next year okay but I thought at last meeting council meeting or you presented to us some additional increases and costs for healthcare right and so if we decided to do that that would be an increase to our budget for next year so those are not in in this existing budget that's correct so these are only the ones that have already been prior approved yes and so when we feel the personnel positions those positions are based off of actually making a knowing that the revenue forecasted will be produced or do are you planning on hiring before the revenue trend we've hired one this year but we already received that revenue so we're estimating to have the revenue for next year so for 2017 and 18 correct anything that you eliminated from your budget that you is not included that we don't see the detail here but anything that was eliminated that was not not necessary there's a lot of routine maintenance that we've had to cut back especially on the earth field but we're estimating to cover those as revenue increases - especially those open positions that we have - in the maintenance that was not done is one airfield maintenance we've cut down on the frequency of moment on the airfield and we addressed the major issues with the drought probably helped with that didn't it a little bit but the rain has not helped so lose does that become a safety issue for further airlines no sir anything that it's safety related we go ahead we have to do we have to okay

[0:16:30] according to the FAA regulations there's no clever way saying as you and the Deputy Director Mitch run mowers run tractors and do some of that mowing do both of us fill in wherever needed at the airport in any position so sometimes Luke comes to meetings he's wearing jeans and he's covered with grass clippings or I love when a boss shows everybody that you can do the work - thank you for that sure are there and there's no other opportunity for revenue here on that something appears right now no I'm being conservative on the revenue again if the finance department can provide the detail to counsel I think this will explain everything for you the on airport well the airport lease rates are governed by a schedule standard rates and charges we update that periodically don't we yes this year will be another year that we do so we'll have this upcoming year at existing rates and charges and during that year we'll be updating the for the new door rates and throws for the next three years yes and when you talk about standard rates and charges to find that we establish all our rates and charges for every category that we have so all the tenants know what their rates will be and it's something that the FAA requires too so we have to publish those the council both benchmarks against which we here we compare against other airports are specifically for T hangars all of those planes they're sitting out there on the tarmac what's what do we charge American Airlines for all of those planes right now it's 192 per month per plane and we conservatively estimate the amount of aircraft we have for next year of revenues as included in the [Music] yet to release a section okay again once

[0:18:35] you receive this you'll see a complete detail I've been very detailed in our revenue and our expenditure students is there any reason to believe those planes will be going away that might be but I've been conservative on the number two so they have a conversation with you or notification with you if in fact they're going to take planes off the tarmac and haul them away yes I notify you ahead of time when the planes are coming I well not when they're coming just if they're using them and whereas to made a few to go back to service in the next year or two it takes some time to put them back into service and whose service is those planes to American Airlines maintenance facility out of Abilene so they come down here they've moved some mechanics to San Angelo and they move travel each day - thank you on solid waste is that the next one yes ma'am so this is two hundred fifteen thousand almost two hundred sixteen thousand less than last year's and total budget is that correct yes ma'am changing to come and talk to you about that good change that's the decrease in the net revenue over expense it's you know I've been to contingent assembly yes is if we put every year we budget revenue over expense which is a little bit different a little bit different than it was last year as we put some in contingencies in case when we start looking at any the permitting green the things that we have to do out at the landfill any of the environmental issues that we have to deal with out there at the landfill working with Republic to do those but we do every year we budget revenue over

[0:20:38] expenses we intentionally are building up our fund balance so within the next eight within the next eight years or so we're going to have to look at permitting either the new land we're going to have to look at expanding our existing permit vertically and so with that we're setting but the money's back now so we can pay for that process in the future so we're building it fund balance to be able to do that as we move into the future and what's your fund balance now I'd have to give the Blue Book ten yes idea one moment dependent depending on it depending on how we tackle it it could be anywhere from two to four million dollars and that's depending on looking at a new permit or whether we do it from an expansion if there's anybody that you know that challenges the permit anything like that if we have a lot of legal fees associated with it that price goes up really really quick now would that be for just dumping to raise the level of the landfill there's we can we can do a permit modification to to increase the vertical height of the landfill the existing landfill as the permit sets now or we can we have the 320 acres to the north to where we can either modify our existing permit to expand the landfill into that area or we can create a new permit for that landfill area there we have several options that we can look at as we move forward we just as we move forward depending on what the state legislature and even some of the federal laws we're looking at at the time will depend on what that best what our best action or best move forward will be at that time based on kind of where we are within the you know our previous federal administration we were getting becoming

[0:22:42] very tight and you know very more restricted in our abilities and what we were able to do and with the new administration we're starting to see or hear talk of some of that relaxing and so there may be different options for us to look at as we move forward into the into our next need for expansion I was going to your capital increases 250,000 over the previous year talk about that again that's that's just going into contingencies in case there are things that come up out at the landfill that we need to address looking as we look into the future whether we need to look at some fencing issues or things like that as we're moving forward looking into the looking into the new looking into the new area and and some of the issues that we're working through right now so $250,000 increases a large increase what is the number one large increase in capital expenditures because that's a huge jump it is it's a huge jump in it and again it's going back as we're looking into some of the things that we're looking at right now that that you've asked us to look at we said some of those funds aside just in case there's something that we need to do whether that's in a professional service or if that's in some other area we have placed that money back into contingencies for those and if the landfill did not see a need to use those funds in this coming fiscal years and that would of course still follow the fund balance and would aid them in the future with their permitting and to answer your question on their current fund balance their budget AddThis current year to have an ending fund balance of just over 2.5 million dollars we were saving up for more than just that permitting exercise have we achieved all those other objectives is that the main thing now the main thing currently is the future per meaning is what we're looking at the majority of the other objectives have been covered in the contract a lot of the other ones have been covered in the contract that we have now so the new contract cleaned

[0:24:44] up some of that old it cleaned up a lot of it and of course prior to the new contract and everything we're sitting at a negative 2.6 million dollar fund balance so we've not only cleaned that up but a lot of the other liabilities that we had as well to cost of that permit go up over time each year or not not necessarily it it's based on the current regulations that are in place at the time and the amount of legal work and preparation that has to go into it there's a all the all the different studies you know that you have to do all the testing and the water testing the just the soil testing and everything that goes into it all the engineering studies that go into it at this dude now as those prices increase of course the cost goes up but not necessarily the permitting that's our metal self so it is there any wisdom in going through that process and getting it permitted prior to you actually needing it or is that just a waste of waste of time he can do that you have to start placing material in that landfill within 24 months of receiving a permit so it's not like we can go out and get a permit 8 years or 10 years early unless it we unless we do modify our existing permit to to expand our existing permit and then we're okay but if we go out and we create a new permit on the new land and then within 24 months we have to start using that new landfill okay is there what is the height restriction because we talk about airspace and we have X amount of airspace available to us under existing permit but we have opportunity to go over and above that height for additional air space aerial expansion so how close are we to the existing height under existing permit currently under the field space other than the existing cell that we're working in right now we're very close to

[0:26:47] the to our Heights restriction on all the areas that have been filled to this point of course we would have to do a perp if we want to continue to see a vertical increase we would have to do a permanent modification which basically goes through a lot of the same processes it's not as complicated as starting a new permit but a lot of the same processes where you know we have to allow for public public feedback in the whole nine yards to do a vertical expansion but it's doable and it's it's whatever well I mean there is a certain point where you hit a peak and I'm not sure exactly how high that is out there right now but it's basically going to be left up to Council as to how high you don't want to see a mountain out to the northeast into town so much wiser to use existing opportunity then create new expense and yes correct correct here's terms to see how far along we can go until we hit that limit we can't and we're actually working through a lot of those airspace numbers kind of right as to what what's actually out there and what's available within not only the existing permit what's a 10 a 10 foot increase or a 20 foot increase with our existing permit mod would be and then also you know looking at available air spaces we move into the future into the new into the new side we you know we've kind of projected out in years that that's roughly you know the new site the 320 acres would give us approximately in an additional hundred years of airspace but we have it in years but we don't necessarily have an exact capacity so so are there any risks or opportunities in your revenue side we're staying pretty steady right now within our revenue and of course revenues based on how not only well how many citizens we have and how much money is collected from that end of it but also the majority of our revenue comes from you know work when it comes across the scales out at the landfill and so as

[0:28:49] we're if if we see a large boom like we did three or four years ago in the oil field and all of a sudden we started seeing a lot more trash and debris coming from out west of us bring it into our landfill our tummies goes way way up and we and we can see an increase there we have seen since then we've started seeing the decline and so we have based our revenues on on a fairly conservative number as to what we can expect from a tonnage going across our scales out of the landfill and we budget you know the from the collection side of it on that side of it from the billing and collection side that's that stays fairly flat every year we don't see a huge influx one way or the other it stays fairly flat the biggest e the biggest increase or decrease that we see is based off tonnage at the landfill tracks that we put in place in April has the every other week bulk hurt or helped the fees out on the scales have you seen a trend are we collecting more or less from the from the tonnage stamp on a massive umbilicus has it decreased we see pool out there going across the scales we have we have started we've started seeing a decrease in the free dumping in the take the water bill once a month after landfill we started we started seeing a you know those numbers those tonnage numbers are starting to finally decline which they had for quite some time increased been increasing very steadily over time and so we're starting to see it starting to see somewhat of a decrease there from the free dumping aspect of it we're still and of course a lot of it I had to do a lot of with the storm debris and some of those other things we've ever since we've implemented it we there's been a it's been very well and very heavily utilized since we've implemented the every other week both pick up so far we haven't

[0:30:52] really started to see a huge decline in those numbers yet but again as we start getting into you know this time of month where grass is getting harder and harder to grow we'll probably start seeing less of those until we get into the October November when we see a huge increase in the leaves not granted that's not heavy leaves aren't necessarily real heavy but we will see an increase in that utilization of that service when we get into the fall and winter months Shane I'm educating me please looking at the Blue Book I have a question on several of the line items under revenue could you share with me what landfill host fees are and under expenditures contract services and professional services what are those the host fees are the tipping fees that's when you go across the scales out at the landfill there's a there's a certain dollar amount that that comes back to the city from that and that's the revenue based off of the host fees or the tipping fees out there and so and then contractor on the contract services we have we have a third party engineering firm that we keep that we have a contract with that reviews a lot of the documentation when we do a lot of the permanent modifications we all of our annual inspections the emissions inventories a lot of those thing they review those for us to make sure that that's all correct before we submit all that to the state okay okay and then professional services well I'm sorry that what I was actually professional services was is what I just described their contract services I think which one it's I budgeted for two hundred and ten thousand four oh that's decisions free dumping program so what the citizens free dumping program then once a month when you take your water bill out there once a month that's where we budget those funds is in that line item but it's an expenditure yeah we

[0:32:58] have to anything over six thousand tons that is taken out there under that program anything above and beyond the city is responsible for those costs so we pay standard for anything above the six thousand the first six thousand tons are at no cost to the city anything above the six thousand tons which for the last two years we have exceeded significantly it's been such a well utilized program that anything above that we we pay regular gate rate for every every ton that comes in after that the city is response the city is responsible this man because you have to count for all dumping yes yes everything that goes goes out there goes across the scales and so it's always all weight and it's all capacity so I know that both pick up to have that opportunity for citizens to actually put their their bulk items out in front of the yard actually helps our that expenditure it does it does it will have an having the opportunity for them to be able to get rid of it in front of their home and have it being picked up as part of their service will help that hopefully and we started to see a decline in that number and so we hope that trend continues because that will free up it will free up those dollars out of this fund Thanks Thank You Shane still Riley she's up next sale could you come up and talk with us about the water fund please [Music]

[0:35:09] alright let's talk about the sales under revenue of million almost a million six increase over the previous year this is in line sorry I'm Alison Strube the assistant director of water utilities this is in line with the raft illustrate plan they are the consultants who did the right plan a couple years back we had them update last year's actual revenues and usage numbers and so this is the new projections based on rates for the remaining of 2017 and new rates go into effect 2018 is that usage the same is just an increase in rate or is there combination of increase in sales and increase in rates not an increase in usage because we're not seeing that base that were being conservative in the usage numbers last year as it was a rainy year we did see a decline in our we did not meet our revenue as we had or what we had budgeted last year based off that usage so I want to just be clear at word 2016 and 17 is actual numbers through June or is it budgeted numbers that's budgeted numbers so when we're little original as we're not looking if you will apples to apples in the budget versus the actual trend line so we're really looking at these have not been updated relative to actual numbers these are original forecasted 2016-17 numbers yes ma'am those were also budgeted in accordance with the right plane at that time so if we talk about actuals right now the sales number increased versus actual through third quarter of this year what would that number be at June 30th we are tracking at 68 percent of our water sales which should be at 75 percent but we see our high usage in the

[0:37:11] summer and so we will see we're tracking very close to what we had budgeted for last year okay Schmidt Lee is what I'm trying to say so when we're looking at the million five that's a pretty close estimate terms of what actual 2016-17 will be verses the increase projected for seventeen and eighteen yes ma'am and the other is we see revenue in other ways than water sales we have the city farm leases we have Lake leases around names worthy rentals the camping fees out of the lake all of those are pretty steady a large portion of this is due to the the leak light leases in the increase in those all right we bought the ford ranch and their releases on the ford ranch are those in here yes those would be in the other category but the late the lease from the ranch will be used to pay debt service so it won't be and overall increasing the budget it'll just be used to fund that additional debt service and okay partially funded an smart meaning 50% 60% all of that revenue will be used for debt service but it will not be enough to cover the entire cost of the debt service yes and so what percent of the debt service will it cover are you budgeting three roughly $300,000 thousand in the debt service is three million to ten percent there should also be we anticipate some operating costs associated with that three hundred that three hundred is the lease income or it's the net lease income it is the leasing them not to be there are some experiments some ranch expenditures we expect to have to pay from that money also right that's correct is that in your operating and maintenance and under

[0:39:14] expenditures because there's a three million dollar increase in that over last year so to describe that the the three million om is mainly attributed to the debt service for the for grange so that's where it's reflected the debt service yes so that's the three million so basically you have a two hundred forty two thousand dollar increase outside the actual debt service it's a little over 3 million for the debt service I don't have that exact number all right and you have a $225,000 increase in capital expense what's that this would be in line to keep up with the street programs so the water main replacement and we're also doing the water master plan which has the infrastructure needs for the water replacement so this additional capital expense will be spent on water line replacement and that is in conjunction with the street work we are working towards that yes but right now yes it is the part that is going to be done before the street and what are those additional costs that we will incur with the Ford ranch purchase in terms of things that you said we would have to spend money on we don't know what those really are right at this time but we're going to do in 2000 and that would be what the pilot is that we'll be paying that directly or the least lesser is paying that the lessons are paying then okay there's some road maintenance and things like that that we have several miles of roads on the ranch that we have to maintain so that we some expenses that we'll have directly ongoing each year to maintain there's some other things that fencing and stuff just the things that we'll have to do over the next few years or well actually the whole time we're out there so that's we anticipate using those funds to in the sensing is because you have AG leases out there so we're responsible

[0:41:16] for the fencing well they're already we need to fix just as part of our our operation out there maybe 250 thousand foot level you know at some point we're going to have to start talking about water treatment wastewater treatment and that sort of thing in terms of upgrades is that something there will be a separate discussion item from you all at some point in the future is that a different day different discussion but at some point when will we start having the discussions you know here's what we may need to do out there here's what you know the expected cost would be is now not the time to have that conversation but we can have it to the extent that that we have the answers for that the the project that I've been discussing with you here recently will include developing that information so that we are okay exactly what we need to do and what it's going to cost okay okay well that's inclusive of the five wells perhaps and the water treatment plant or is that just the water treatment plant well there's two treatment plants the one associated with the wells I mean that's a different project than what I think humor is talking about you some that are surface water treatment facility that's very old and needs upgrading and then our wastewater treatment facility they're the ones that we understand on the groundwater side we know what we need to do they're on the surface water side and wastewater treatment plant there's some other information we need to develop to understand what those upgrades need to be and one of those is what our future water supply sources would be so you that's based off of future water supplies not existing water supplies well we know what our existing supplies are and what it takes to treat those but we don't want to make sure that we are not - that we are as farsighted as possible and understanding what what we're going to need to do in the future

[0:43:19] so that we can accommodate that there are some some sources west of here that are very brackish and that would in that would need some special water treatment in order to get it to consumer use is that correct that is correct yes sir and it's not even I mean that's of course a brackish supply but even depending on what our whatever the supply is could impact what treatment processes are used and so we just need to understand that and again that's part of the the project that we've been talking about is that to develop that information so that we can move forward we have a plan and it has including a timeline and cost has there been any discussion about moving the water treatment plant outside the city limits we have not I can go down a short rabbit trail for just a minute but while ago we were talking about the solid waste fund and chain is saving up for a known large expenditure in the future he has an idea of the time frame and has an idea of the amount so we have a plan where we're hoping to pay cash for something we think is going to be ten million dollars or less this is an example of a fund that is somewhat in recovery we're trying to build that fund balance back where we think it needs to be thinking early about setting money aside for future capital expenditures is is how you get that's how you avoid debt larger amounts of debt in the future it's probably not realistic to think that we would in a short period of time save a hundred million dollars toward these big improvements we're talking about but to the extent you can continue to build the fund balance with the idea that you would cash flow some of those even a small piece of those large expenditures if that's consistent I know some of you have talked to us about minimizing our debt load and now is the

[0:45:23] time to think about that if you have an idea that you want to spend big money in the future if I can just piggyback on that a minute the example of that of course is what Allison was talking about with our infrastructure rehab in relation to the street program obviously we have those needs we're not just replacing them because we're redoing the streets those that infrastructure needs to be replaced as well but we're hoping to be able to cash fund that as much as much as possible but over the next I mean the street program is 80 million over the next ten years an example is what you're going to see with Bell Street is the water in sewer replacement is considerably the largest part of that expenditure for that project we're very likely going to see that as we move through the street programs the point being is it's going to be expensive and so in order to cash fund that and not have to incur debt for that we're going to have to plan for that up front to be able to have those those funds available to keep up with that program well which is a good point but I also see the budget only has $225,000 budgeted towards that so when you talk about it's a great expense what does $225,000 Bayou relative to quote the expense that you're indicating I think she's referring to the increase that's just the increase right correct so you're basically planning to spend two point six five five 777 towards infrastructure repairs attached to Street there's also a dedicated fund a water capital fund that goes along with the CIP plan and so that has money in it as well that is dedicated to water line replacement so what is the total dollar water replacement infrastructure improvements we're speaking about in this 2018 budget mayor while they're digging for those numbers these capital

[0:47:28] amounts would also be where they would replace equipment trucks that crews go out in screw back hoes whatever whatever they need that would come out of this capital line also can you talk about the difference between capital improvement relative to trucks and back hoes etc versus actual infrastructure improvements give me one they're currently in the water capital fund which is the one outside of this one there is two point eight million dollars set aside for infrastructure improvement to water line replacement and of this capital expense on this slide right at two million dollars is pretty close to two million is dedicated to water line improvement so four point eight million dollars brotherly all right so the 655,000 is going towards new equipment replacement equipment vehicles machinery and that's also technology improvements describe the technology improvements with all of our divisions there's six divisions under both bill and I computer servers those type of technology improvements that is minimal compared to the machinery and vehicles though this is one of the first years that water utilities has bought vehicles and machinery and I believe

[0:49:31] about three years and the benedetti machine is where was in what fun yes came out of the street bond fund so Alison did you purchase the gel purchase some dump trucks this year just to give an idea of how much one of those pieces of equipment cost just by itself we did purchase two dump trucks this year and I think they were 200 250 each so their equipment adds up rather quickly the 600,000 doesn't really go that far okay sorry 110 so it's 2 220,000 together but move forward with whatever you will be bringing to us soon next 3045 days you know we're going to be talking about some really big numbers I assume when we're talking about future water supplies when we're talking about treating those water supplies when we're talking about upgrades to facilities when talking about upgrades to wastewater treatment cells and so we're talking big numbers and so you will have the revenues and expenditures tied to those sorts of things this is really day-to-day operations you know in our water fund but when we're talking about some what we've got to look for for the citizens 5 10 15 and 20 years down the road we're not touching it here that's correct there's nothing in here that for funding any of the infrastructure you know the treatment plants upgrades our future water supply there's nothing in

[0:51:35] here that that's related to that at this point what's our water fund balance right now at the end of this fiscal year is anticipated to be a little over 3 million about 3.1 million which gives us about 50 days I think in cash on hand and our goal of course is 75 hours and that's a minimum I would think being not necessarily the gold standard that's probably not achievable but what would be what would give you in your line of work comfort in terms of coverage I think generally what you would see in the utility business is probably ninety to a hundred days you know I think 75 days is minimum okay so we're looking at trying to trying to achieve double the number roughly did are the current goal we said this that the council adopted was 75 days so we're hoping you're shooting for that but if we can go above and beyond that would be nice too but water plan basically was to get to 75 days and then has some dollars for some of these other particular needs is that correct that's correct we meet the other needs and still build up our fund balance to 75 days cash on hand this one has the disadvantage of being highly seasonal in that in the beginning of the fiscal year water sales are low because we're in a fallen winter and we hope to climb out of that deficit we touched on revenue earlier we're 3/4 the way through the year and only 68 percent revenue we think that we will climb out of that this year but that means that the fund in those lean months relies on its fund balance and it routinely gets lower than it should be during those months and so achieving some base level to facilitate operations we think is appropriate in even on the looking at the overall

[0:53:39] 5-year plan since since you know our the revenue is highly impacted by whether we could have you have to look at it on a five-year basis because we in projecting the the revenues we normalize the usage so that we have a straight line if you will on usage knowing that that's not the case and so looking out over the five years we would anticipate having the fund balance to be where it needs to be but we could have negative years and then high years depending on on whether so you really want to look at it over a multi-year period and that's what the plan has done and on top of that our expenditures don't always track just you know linear either because we have some years we have larger expenditures than others so all that has to be taken in consideration in that what budgeting is about this is are we talking about besides the utility equipment such as backhoes dump trucks the vehicles that the guys go out on just the trucks are we replacing just basic work trucks or we do yes okay how many are we looking at what are the cost of those what are the lifetime usage of what we have currently are they are they wearing out what's what are we budgeting for for vehicles we have a little over three hundred thousand dollars budgeted for vehicles and that would include everything from the pickup to the service beds but as far as pricing on individual trucks I I don't have those numbers I mean Brian Cramer to probably speak to that but we work closely with him he gives us a list of trucks or vehicles that have reached their lifespan in terms of mileage and how often he's seen them in his Joshua and how much we're putting back into the truck and it is it worth it to replace

[0:55:43] and put an option so we have our closely with them to coordinate them okay do we have our own inventory of parts and or do we have a contract of somebody for buying parts and maintaining the equipment are you talking about vehicles or with like a water in precision our fleet services division is where we do our vehicle maintenance and we do have a contract with Napa for parts and inventory and where we be is that where that will be in another area that we're going to talk about today fleet services and I don't think that we have that on discussion for today but Shane is here and I'm sure he'd be happening as our questions but he could on the next budget meeting I'm fine talking about it saying I just want to make sure it's not it's not one of our major funds so if we do want to discuss it it would be fine to do that today okay let's talk about it okay Shane do you want trying to come up now or do you want to finish with water first and finish with this if there's any other further questions on this area so I think we're good and if you'd like us to work up one of these slides like this for discussion at the next meeting we can do that as well if we're not able to answer the questions that you have today great so describe to me what this contract is and how it works the Napa contract yes sir we we used to do all of our parts inventory ourselves back several years ago and we found ourselves that we would we'd have parts inventory and some of it would would actually become obsolete before we would use it or we would turn it due to due to changes in fleet there changes in in years of fleet and so we actually work

[0:57:48] through and what a lot of other cities and municipalities around the country do they have gone to a basically using a provider such as NASA to actually do their parts acquisition so they can their national company they have huge buying power as to where we buy ourselves do not and and of course it also cuts down a lot of the issues that we also have you know from the purchasing issues about spending a lot of staff time taking bids and doing this and going through all the parts and stuff so we actually I guess is probably three years ago four years ago now going on third year we we've have a contract with Napa and basically what we do is they come in we provide them a space within our shop and they basically set up a little mini parts store for us and our guys our computer system in their computer system are tied directly together as our guys need parts they put it into the they put it into the computer it automatically goes to them they either go pull parts off the shelf and have ready for our guys or they order from their national distribution center and it's here the next day and so that's and it's become a lot more efficient for us we're getting our parts a lot faster our downtown's on our machines are actually a lot quicker because their their ability their availability for parts is so much quicker than what our you know if we had to order something through one of our local part suppliers or through the local courthouse or dodge house or whatever that might take two or three days is to now deficiency is depicted substantially and the cost of actually even though we're paying a little premium on their parts they get to buy their parts so much cheaper than we were able to buy them before that it's really kind of the cost offset them offset themselves so give me a typical cost structure so if the part costs $50 they get what percent of that for 10 a 10 percent markup on that is what is what they they make their markup on ordering it and ten percent on top of that which is what we pay yes and so do we also pay the salary

[0:59:54] of that person from from the ones that work for NASA no they they pay their there there the others a management fee that goes with it that includes but it's quite a salary it's a straight number a straight cost number so it doesn't go up or down relative to how many parts that we order or you know that that's that management fee is set based on and what is that now that person was about four forty thousand a year annually yeah and there's two parts they run two different okay Shane out of that contract that you're staffing we will reduce you we didn't we reduced our staff to to comment and actually they went to work for our people that were in the parts room went well one of them retired and the other one did go to work for Napa so Shane you also don't have as far as inventory convinced title yes or you know we don't have gone of our money tied up in inventory anymore has we used to have I can't remember Patrick do you remember what your inventories were back then with your I can't remember that far back with her but we had what substantial amounts of dollars tied up in inventory back when we ran our own parts room we carried in on the books inventory of about one hundred and forty thousand dollars in parts we had an annual shrinkage so of approximately anywhere from fifteen to twenty five thousand dollars in parts that's due to loss that's due to obsolete obsolescence as well not to mention that we had to run our own inventories not only from a semi-annual basis but that our annual inventory as well so that was an overhead overtime expense for the shop as well so we were able to eliminate all

[1:01:59] of that expense I'm moving to Napa the other thing that Napa really garnered us was a a way to search for parts the in the past we didn't have a good system to look for it all we had was our historical buying so Napa was able to use their resources and their software in order to find the appropriate parts the first time for us so we got a lot of benefit of moving that not only did we eliminate that the parts inventory on our books and free up that capital and that money but we were able to get parts the right parts a lot quicker and a lot better price when you look at two employees if I understood Shane correctly that we in effect eliminated two positions that we were paying for the salaries plus the benefit wouldn't it be a cost savings there if we're paying a $40,000 annually management fee versus two employee salaries plus their benefits cost and all of the cost associated so we saw savings there as well that was basically a wash for us yes okay when did we go into this system two years ago three years ago where we're in our third year of it this is our first full term we're coming up to the end of the first full term and we have two one year extensions so we have the option to extend for two more years with them and at this point the benefit that we're seeing absolutely subsidizes our supports that the extension thank you purchasing or though no I just want to understand how the process worked in relative to why we made the decision to go from basically in-house inventory management and parts ordering versus contract okay before y'all get away we do struggle with regularly is

[1:04:01] replacement of equipment in funds that lighter duty equipment half to 3/4 ton trucks is that and one ton have to have to one ton huh we struggle with that regularly and what they advise is that when we slow down the replacement of vehicles this makes sense you can predict and we do see an increase in repair and maintenance expense and downtime that goes with that so they are constantly fighting that battle to keep the downtime at a minimum keep the repair expense low and manage how to replace equipment with interest tight budget is that a fair statement I would add very like our households right the same thing we do at home the place the when we do when we do take take a piece of equipment offline and we do auction it those ryan when he puts them in the end of course will go into an online auction system instead of a on site auction and we've seen incredible gains just by doing that because it opens up to much bigger by our base and so we have seen good good there but as he as Ryan does that he whatever fund that that vehicle or a piece of equipment came out of Ryan tracks that and keeps those funds separate and then those funds whatever proceeds that we received from the auction go back into that fund that that machine came out of so do we go ahead and budget for it and then once we see those numbers come in it just helps that decrease what our actual cost is yes we've give me a number that we would get from the auction in total the last one we ran was seventy or eighty thousand and it was it was a small auction with mostly just vehicles and we'll see anywhere from some of our very heavily used vehicles

[1:06:04] will sell for 2,500 to 3,000 up to when we sell some specialized piece of equipment street sweeper one of those type things they can go for as high as fifty and sixty thousand so now granted based off purchase price they're kind of equivalent to some degree but it's a who would buy street sweeper from us another municipality other smaller municipalities would buy from us we have we do have a lot of people from other countries actually buying some of our equipment now especially the specialized equipment when we start talking about back ons and street sweepers and some of those type things you have again smaller communities we'll buy it and then you also have just sometimes private contractors that are small contractors that are just trying to get a business started we'll end up buying some of our dump trucks those type things and some of our again specialty equipment so what percentage do we usually see from the auction on our total vehicle replacement how much does that bring in that seventy five thousand from what we spend while are we seeing any yeah well annually we're budgeted one point to one million I believe for equipment replacement in the jitney and the general fund only one point to one million in the general fund it's a small percent it yeah we might see may add yeah to ten percent I would say that's a little high even on a return on that so but that doesn't go in your because we don't see the fleet services screen so we don't know how that breakfast so that auction proceeds is budgeted and fund 501 which is our general equipment replacement fund and this year they had budgeted fifty five thousand dollars in revenue in made seventy six thousand five ninety seven and then that's in the general fund that's for the general fund only in use so those proceeds go to fund the next round of purchases is our Civic events fund again we I pointed out

[1:08:28] earlier that you will see some significant changes here but that is largely due to the way we're accounting for it in breaking out the hotel occupancy tax into a different fund so that we feel like that's more transparent and then the revenue stream would be from the hotel occupancy tax fund into the Civic event fund for their forty eight percent that they received from that revenue stream so where will we see on these budgeted areas where will we see that other revenue that will be up shortly we'll discuss the hot fund fund 605 in a few minutes okay so when we look at this and we see a nine hundred sixty five thousand dollar decreases not apples to apples so when you talk about this give me apples to apples so we are budgeting hotels even see tax revenue the same as we did last year at 1 million eight hundred fifty seven thousand dollars five 1 million eight hundred fifty seven thousand five hundred dollars so the revenue stream that you see coming into the civic events fund for that would be forty eight percent of that amount so it did not change from last year for their revenue from hotel occupancy tax so we're basically for civic events fund planning it flat to last year flat yes ma'am yeah so there's where it says a million dollar decrease it's not really a million dollar decrease you're really talking about flat that million dollars would be related to the portions that would have been allocated to CVB DSA all of those organizations and you'll see those later on in the presentation okay so the internal the internal difference in civic events fund is the 37,000 that you see up there and that largely is due to downward trend in and rentals particularly at the convention center we had budgeted this year based on trends of the previous year most of you are still getting a lot of rentals from the oil industry oil companies doing different trainings at the convention center and a little bit downward trend in advertising sales so that's what that difference is 37,000 so relative to you

[1:10:32] know weddings and banquets etc how is that trend it's still pretty flat we've seen a little bit of downward trend just because of the downward trend in the general economy but we hope that we'll pick back up but we just budgeted a little bit lower than a lot last year based on the recent trends we've seen in Reynolds I would like to mention that the last few months we've seen an upward trend in as you've noticed concerts so that has increased recently our concession sells and some some other rentals call same in the river stage that we hadn't experienced recently what percent do we get off of the concession it's 25 percent for alcohol and 20 percent for food and soft drinks yes we process question if I'm looking in the Blue Book yes me and looking at all of the revenue lines would that add up to the two point four because I see hotel-motel revenue Coliseum yes that should add after that would my ad lab to that number that's that would be original okay thank you so what's the opportunity for increased rentals whether it be call us an McNeese Convention Center River stage etc what's the strategic plan to bring in more revenue in those facilities well particularly the river stage you started to see that new plan takes shape the last few months working with different promoters we've been bringing in new acts it's not just been wonderful motor it's been three different promoters also that you could spill over to the Coliseum as far as the Convention Center it's like it it's a little bit based on different usage so and Coliseum one of

[1:12:40] the things has been discussed amongst the groups and some with with Carl Civic of in sport is the limitation of the buildings the Convention Center to be able to accommodate conferences and those things here in San Angelo mainly because it's lacking some breakout room that you need to pull in those type of conventions and it's lacking an exhibit hall so those groups have talked about that they've talked about potentially looking at developing a plan for that and in looking at the whole process of how you fund that you know the hot money of course is not at this point going to support that so there have been things discussed such as a venue tax those are things that are placed on a hotel room some communities do to help fund those type of projects which then can assist in bringing any conventions and everything other things to actually enlarge your usage of the I'll leave anything out crawl all right and we've also been working a lot closer with CVB Dayan who's new with the CBB to try to market our facilities better I think as they came in one thing I noticed that they have started to try and do is also look at smaller conventions that can actually be accommodated here the thing we struggle with is for instance we hosted Texas Parks and Recreation here several years ago we were able to pull that in assist from a city standpoint with our connections we bid on that again and they turned us down because not because we don't have enough hotel rooms it's because the the building can't accommodate it right so even those that we think we could get for San Angelo we can't get them because the building won't hold it buildings are but we also know that regardless of the negatives there's got to be some positives because we own those buildings we got expense to maintain those buildings so at some point we got to strategize how to maximize those buildings and those assets because we own them and the expense of maintaining them does not go away regardless of the negatives

[1:14:43] attached to those facilities so we have to look at what the positives of those facilities are and try to market towards those because we own them we agree I think the staff does a good job of looking and running those facilities typically the city contracts with the CVB who is responsible for helping to market and and push forward bringing outside events our staff does a very good job primarily of focusing on the local use of those buildings and as you said earlier we have a lot of weddings we have concern eras and all those kind of things that happened there the thing that has dropped is the meeting times going on it was largely driven a lot by the oil industry over the past few years that has dropped off drastically we have a fee structure that we went over a few years ago to try and encourage more use it it allows for a cheaper rate during those off time so a lot of that's in place of course I think your board always looks at that to see if there's other opportunity that's correct speaking of that I see that there's no capital expense budgeted for 1718 does that mean there are no capital issues and that the buildings are in top shape and there's no expenses associated with maintaining those buildings clearly not as you know we did go to the City Council about a year ago and got almost a half a million dollars to do different improvements throughout the Civic events facilities and a lot of those most of those projects are wrapping up and there's only a few more left we'll be coming back Council likely in September to give an update on the progress of all those projects and we intend to ask Council for some additional funds to do some other improvements as for good or bad the way that it is typically operated in the past a lot of departments will build in into the budget a certain amount of capital improvement budgeted within his his yearly budget the way they have typically operated is that they have

[1:16:46] their operating budget in general and then if they have above and beyond such as large improvement projects they have to come to you and the Civic events board and say okay we want to do this and there's X amount of money and the hot fund so we want you to allocate additional dollars for those improvements another way to do it would be you could you know allocate a certain amount per year just in his budget to start with that we make it easier on them but not as much accountability as having to come and justify the project to this board investment in na all facilities what's our our fund balance going to be towards the end of this fiscal year I don't have that information with me right now because we did break it out into the two separate funds and we haven't published that into our blue book yet but our goal is to leave the Civic events fund within a 90-day operating fund balance and then the rest would go into the fund 605 hotel occupancy tax fund balance and I think you're asking what the hot-button balances correct right I don't have it broken out that way well my challenge would be the following is is that again in a conversation maximizing facilities because we own them they cost us it exists the expense doesn't go away so at some point we have to take a look at facility by facility and say what's our priority in terms of potential revenue increases in that facility and what would it take what does it take from a capital expense to ensure we maximize revenue for that facility so that we don't have conversations about well the reason we can't do it is what we don't want to hear is we can't lease it out because of the following negatives I want to know why what we need to be able to lease something not to increase

[1:18:48] revenue and focusing requests and strategic plans or capital expenditures towards maximizing a resource for example the river stage as a facility for as long as I've lived in San Angelo everyone talks about what that River stage should be and could be if it was brought up to a level of X what's that level of X to maximize the revered stage because we we've spent 14 million dollars improving the river what are we doing to improve the River stage to maximize the use of the River stage on the 14 million dollar River because that's one of the biggest assets we have quote is the ribbon we do have ideas and we'll be coming back to council what those ideas saying that Carl touched on it a while ago is that they have focused on the river stage event and as you've seen there have been a lot more events going on there so what we tried to focus on is while we haven't had funding allocated to do large improvements there basically what you just said a while ago we focused on okay we don't have those improvements yet but how can we improve the number of events they've been very successful in that rant but yeah I think what we need really the most you know there's there's a group talking about the Colosseum there's a group talking about the Convention Center there's a desire for the river stage you know we really need those prioritized you know what we would like to do is eventually bring something back to y'all and say okay there's all these projects we clearly can't do them all at once what is our top priority which one do we focus on and now we'd like to focus on all of them and look for opportunities and maybe one rises to the top because of an opportunity for grant funding or whatever but that will help us like at a work session when you all are having one where we might discuss this topic in general and kind of get a focus on what is what is the top priority and then we can hone in on that but as a top priority I strongly believe that we have to make sure we maximize existing assets

[1:20:53] because the bigger the pot in terms of more facilities the more expensive it is to maintain all of them and then we have to choose between a and B or C and D or J and K and so all of the facilities lack the level of maintenance that perhaps we would like to give that facility and it doesn't help if we add more facilities to the pot what I like to make sure we do is to make sure the facilities that we own function correctly and that we don't make excuses for why the facilities don't work I think we can handle that and I think they can bring those back to you and Carl may have more to add on that the the point I was going on on the helping to look into the future is to help us what I want to do is you know we know that the oil is going to come and go and so in those when it's gone you know how are we going to make sure that we still have those hot dollars coming in so whether that improve into the river stage or convincing sin or ecology and whatever that is that's where I'm looking for the community buy-in as to what is the top priority to focus on in the meantime I think Carl can address what what you're speaking to as well I do believe we need to look forward to make sure we move our community forward in terms of potential opportunities I just don't want to ignore existing problems I don't like those problems to grow in terms of expense and lack of attention to or lack of an audience to use that facility because we haven't maintained them and I know there's always a struggle with maintenance dollars for existing facilities but they don't improve over time they get worse over time so I want to make sure we don't ignore it wherever those dollars are I want to make sure what strategically we have a plan for maintaining our buildings to get maximum value out of our assets in terms of the improvements we have envision improvements that will maximize those assets and it is reflected in the capital improvement plan for each of those facilities great part is what I'm hearing is don't be shy

[1:22:57] about bringing that plan to the council you know we know it'll take some hot funds and maybe we can live our devoted dollars but don't ignore that maintenance and bring it to you thank you any other questions or comments okay if you could just stay seated we're going to talk about the Fort Concho fun next what Fort Concho funds is okay what about if they have any questions about it sure I know that we are planning on some major improvements to the fort talk about if there's anything in here relative to that or that's not going to happen too until the 18 and 19 budget I know you have a two million dollar investment that's out there I don't see that number up here so my assumption is that two million dollars isn't going to be put to work in the 1718 well what city is not holding that money for that particular project a two million dollar project oh when we approve that and the money's coming out of the area foundation that's correct then we will look at that as a part of this once that revenue has I mean once that dollar amount will come into here it will be in the capital in terms of capital no it's not that those funds for the development of those buildings will not touch city accounts it will affect us once they're built on that sort of like in a way in a manner that we did with the auditorium where we have a partnership some of those dollars actually may never come into the city coffers we will contract we have a contractual agreement between the two entities and they may actually pay the bills we actually oversee the project and approve that yes the work has been done and now it is ready for payment and then that entity processes it so once it's done once it is done then the operating and maintenance or that improvement will come into this budget right meanwhile I know there's a lot of things that the fort that need

[1:25:00] work done on and I only see a three thousand dollar capital improvement in this fund and so my question is once again what does three thousand dollars buys I know it doesn't bias the improvements just in paint and scraping and painting right is that correct Carlos correct and we did an increase made it's more than usual more than three thousand it's right over all think about $30,000 just in terms of buildings and grounds winglets we increased for this year so that reflects the overall in league that you're talking about we do have two other major projects the renovation officer scores one and the visitor center in barracks one and two but you're also talking just across the board they need to upgrade facilities so the 320 1582 does what that's that's all the related expenses utilities repairs maintenance all operations of personalities take the utilities number out of there what is the buildings and grounds number the things that we have had a plan for some time now in places that when we brought on the state office complex buildings the plan was to focus on moving the fort off of the city as far as its subsidy and reducing that amount so actually we're like in that timeframe now next year so you're going to see income coming in from the state office complex for the for one of our goals is while we want to reduce that subsidy that the city's putting in I think you've keyed on another thing we've got some areas we've neglected over the years as far as maintenance because that's the first thing to go so I would recommend over the next few years as we transition that you know down from the city we may hold for a little bit get all of our house in order as far as our maintenance goes and in the same breath

[1:27:03] start reducing that general fund subsidy where we're relying more on the income from the state office complex so basically our debt service on the state buildings goes away so then what we have is the revenue side only associated with that building but then I'm assuming we also at that point in time also take on some new maintenance issues exactly it exists with that building as well so the question mark is how much of the rent takes care of the maintenance versus what is available once the maintenance of that building is done goes into what and have you stated before you know we can't deny the maintenance so one of the buildings that we haven't neglected maintenance I don't think on really at all is the state office complex because we've got at least out we have to make our client happy so we've done those things and maintained it so that fund will now you know still maintain that state office complex at the level we need but I think be able to increase our maintenance at the fourth where you see it you know we can't have a rotting boards and I mean it's just a maintenance deal but it's some conformation it's a jewel we got to take care of it what's the when we bring on the facilities like you're talking about doing at the fort is there a specific plan to go to the mayor's point specifically of making sure that these new facilities don't get behind on their routine maintenance just simply because we don't have the is there a plan specifically to make sure that we stay up with those things we need to stay up with now this building is not a new building you're talking about the the new visitor center project two million dollar project million dollar project or which is private funding through the area foundation but we're going to get them we're going to get the facility so we're going to have to maintain those so what's the point you don't have to lay it out here but I'm really asking is there a specific plan to address those maintenance issues over the next 25 years so that we don't have this conversation that the mayor is talking about and we don't dump this on a future council to have to deal with we do have

[1:29:07] a general plan that we have a possibility to fund it what are the where are the fees like if you come visit the fort it costs you what to come in and do a tour of the fort it's a part of that's part of the other the fort hazard so is several different 8,000 total in minutes fees or is that one of another organization rents out the commissary for an event right for different events we've seen a big trend upwards in terms of revenue for renting different facilities that we have officer scores a dog scores one the stables living history stables off barracks six we've seen an increase in rentals and that's mostly where a good portion of our revenue comes from so I'm in terms of fees that we get there's a membership fees there's a whole slew of different revenue streams that come in let me let me go go back and beat this horse one more time on from my standpoint let's be sure when we get these this new facility and anytime we get new facilities that we capitalize those costs upfront so that we can take care of the maintenance again so that we go to the mayor's point we don't have to have the conversation either on this council or on another council ten years down the road that they are then struggling to figure out how they're going to maintain those things let's have a plan in place before those facilities ever become ours that you know we've got an opportunity in my in my opinion with this new facility let's figure out how we're going to maintain that for the long term go forward called I think that the fort board really has

[1:31:10] has looked at some of these things so maybe some time when we get through the budget we can have Bob come and and address the council on these things and he could talk about the visitor center he can also talk about the partnership that we've got with the Clements foundation on repairing okie one and those future projects that are out there the Fort Reedy probably does a better job of public-private partnerships than anybody else in the city and that started when I was on the board several years ago so I think we need to continue to look at that but bob has all that information I mean the fort board is disgusted I suspect that that he more than likely has more all of that information pulled together so at some future time September October whatever the timeframe maybe maybe we could have him come make a presentation maybe it's a jewel I mean there's there aren't that many forts in the United States of America it's a jewel and it once again I go back to strategically what are we done to maximize what that fort is and when I say that maximizing it relative to the revenue stream to help offset any capital maintenance issues that need to be done because right now we're kind of just getting this paying that out you know it's like where is the opportunity here what are we doing to make sure that rent line increases that the other line increases what are we doing to increase revenue strategically I think Carlin just to give you a little history perspective what they've done on that is you'll see buildings that did not have a floor in them before they put in a new wood floor so those buildings are being rented out now the big success most recently is the stables it didn't have air conditioning and had heating but we could not rent it in the summers period now it's booked almost all the time because if we just open that

[1:33:14] opportunity so I think the board's done a good job at that but we need to keep watching for those opportunities where we can bring in the revenue so a little bit to answer Tommy's question and we'll try and do it with the other buildings but the auditorium is a good example what we did was set up a fee structure where each ticket a percentage are actually a I remember what it was fifty cents or something off of each ticket goes into a city fund and then that fund is used for the large maintenance option or things in the future so it's up as a committee that reviews those if it's an expenditure over a certain amount that comes before Council for authorization so we try to set up that fee structure and you have the ability to adjust that fee per ticket as needed so it's geared it okay we don't want it to fall apart it looks really nice now if the general fund can't support it how are we going to support it so we've set up those in place and we can of course those buildings don't necessarily have a ticketing thing with them so we have to look at other ways to do that we'll do that and the concessions alcohol etc that is where is that in the other column so if somebody leases out two stables and it's part of the route so that's but that the rent is the rent where does the concession revenue come into play does that go to the city totally or does is the concessions revenue in here as well so the fort they don't really get concessions because there are events or private events sometimes they have alcohol sales and that comes back to the forum most of their events aren't using the city concessionaire carlo does not have exclusive rights at at the port food does ray offer housing so he does well he does for alcohol but not for food yes so the alcohol sales where are they it's part of the other part of the other right okay so it's not significant it's not a big has people have events there that don't sell alcohol so it's insignificant

[1:35:17] because anytime they serve alcohol right you get revenue if it's sold yes if it's sold a lot of our events that the smaller buildings don't have alcohol in them if such an insignificant amount that its budgeted when within another budget line where we budget for admissions booth rental sponsorships those kinds of things and but beverage sales is included in that budget line in your budget so I'm thinking we just group it in with all of that together and if it's an event like a wedding for instance and the stables and the alcohol is not sold it's the family providing it like you then there's not a concession amount that comes to the city but if the city has this case so somebody can plan a wedding there pay for the wedding and all the alcohol and they don't have to use the city host no right there they do regardless of whether the family pays for it or not until alcohol they're supposed to because he does supposed to how do we regulate that sorry okay here you said supposed to so that doesn't sound very definitive when you say because in the past in the past in the past recent past week he hasn't been required to we're trying to prove its us that he is the one that they have to go to if alcohol is provided so it hasn't been across the board for all events so they don't have to use city host I thought they did have to this should they have to if they're selling it and if they're providing alcohol they're supposed to in the past to have it always so that's a clarification that your board and group has been working on that has not been necessarily enforced as y'all thought it should be correct so that is something they have been changing in the recent future to make sure that's consistent okay if he has a licenses and the knowledge of the TABC

[1:37:21] laws yes but he's using our facilities correct - generally generally we rely if that's the case in Carlos providing the alcohol then they have to purchase it from Hanna Mac and then he remits those concession percentages back to the city and Clara Tama correct so that's the thing that he's clarified just wanna make sure we're working on that right we are okay and I just wanted to follow up on your question about what the Fe revenue is budgeted at for next year its budgeted for $14,000 that's just the day-to-day towards that come in based on a fee schedule of a dollar 50 to $5 per person and right now there's no facility charge on that as you were talking about not at all I don't know yeah and that is solely day-to-day you know people just coming into and self-guided tours things like that that doesn't include you know fees for things like the Christmas at Old Fort Concho those kinds of things right there's a whole slew of other revenue stream right and you know we may look at as you were talking about that in general you know we used to have a river stage fund that as as we had events it built up and then you could use those dollars for improvements you know those may be things that the board will look at it if council is receptive to that you know either at the river stage you have it whatever quarter per ticket that you add on and that starts building that fund for these type of improvements that we want to make that can make it even a more used facility okay thank you next step we have the hotel occupancy tax fund fund 605 this again is our new fund that we've created to account for the revenue stream from hotel occupancy tax and the expenditures you'll see there are again those transfers out to our external partners and to our internal funds as well so just quickly go through the 1 million

[1:39:25] 857 500 so that's what we're going to bring in in hot text it is that is what we are currently budgeting for next year and that is flat from this fiscal year we have not increased it or decreased it again I did mention earlier that we will have to draw down our fund balance to fund the obligations that we already have in place as far as our external and internal partners but that was something that we discussed with all of those stakeholders with city manager's office and we felt like that was the best route to take at this time and then again in March we'll will meet again with those folks and see where we need to to move ahead for the next year but when you combine all of that basically we are projecting flat the hotel Auggie's occupants the tax to the 1617 actuals yes ma'am no no 1617 budget and what how is the budget relative to actual right now one it's at seventy five point one percent for revenue and we're at seventy five percent through the year so we're pretty good on track and so relative to that then you're planning a flat - sixteen seventeen not only budget but actual revenue yes ma'am okay and the other is what other probably I think it's interest income interest revenue and the decrease is due to what that revenue under expenditure again that's where we plan to draw down the fund balance of the hotel occupancy tax to fund current obligations for next year okay thank you Merson that 1 million forty-five sure 48 percent goes to the Civic events fund so any revenue that we receive we will you

[1:41:30] know of course multiply that by 48 percent and transfer it out to civic events eight hundred and sixty-five thousand dollars is budgeted for the Chamber of Commerce CVB five percent goes to the San Angelo Cultural Affairs Council thirty seven thousand five hundred dollars goes to downtown San Angelo fifty thousand dollars for Fort Concho fifty thousand dollars for Texas Bank Sports Complex and Fisher of the bank complex fifty thousand yes ma'am and fifty thousand dollars for the San Angelo Performing Arts Coalition okay and the CVB is a set number not a percentage that's correct $865,000 five change four or five years ago correct it did it used to be 47% of hotel receipts okay thank you just one SS developing position finally for the funds that we had for discussion today is the Development Corporation alas mr. Pena to come up and talk with us about his budget if he doesn't mind council morning so when we look at the decrease of a million 150 that is relative to the budget not relative to the current sales trends so if you were budgeting based off the Trangia bit eight million four

[1:43:32] fifty is that what that says no yeah oh so you say edging the same sales tax income as a general fund they would have eight million four hundred fifty in revenue not right that's in line with what we are currently planning to propose for sales tax revenue for the general fund so eight million four hundred fifty thousand dollars so and that is what percent decrease from 2016 and 17 I don't know the percentage of a $300,000 decrease to our original budget for 1617 and so right now for the past two months hopefully a three-month trend were actually increasing over last year's so right now what we're doing is budgeting to actual numbers not a 90 day sales tax trend it's a mixture there's more to it than that we do look at a trend over the last several years as well we're still waiting for that those numbers come in as far as still text numbers and yes turns but immoral tomorrow we should have those sales tax numbers and again that's just our conservative initial estimate for sales tax we haven't presented that to Council yet but that's what we're thinking right now that we could optimistically achieve again after we receive sales tax numbers tomorrow then we plan to sit down with Daniel again and discuss and make sure that we have a solid number to present a council when we discuss the general fund so on a big-picture basis right now the 2017-18 budget relative to 16 and 17 actuals what are we looking at we originally budgeted for sales tax for the general fund and 17 point two million dollars and that was up or down from the prior year it was at 3% I believe from the prior nursin so relative to that this trend what's

[1:45:36] the 1 million 150 as a percentage decrease to actual not plan well now this is Development Corporation no but still you have type II sales tax so it's a sales tax trendline and you're projecting a million 150 down from the budget to do that but that's not an apples to apples it's not about budget it's about what the trend line is for 16 and 17 on type B sales tax can I provide some insight Marin counsel just just to provide some additional information that the Development Corporation begins their budget process around February of every year and by May or June we've solidified what we think is going to be the budget and we do look at trends as you know this this year has been very unusual the trend line at some point during the course of the year has been below 2013 2014 2015 and 2016 to date we're still down five hundred seventy three thousand dollars from from our estimated budget our board was wanted to be very conservative because we've had two years worth of non attainable budget revenues just because of the you know the sales tax situation in an actual versus budget because budget was what was put out there right I want to know actual so so we based we based our estimated budget based on actual last year and so we're going to be a million dollars below last year's actual is what we've estimated that's 11 percent for the Development Corporation it's an 11 percent reduction in estimated revenues for us which means we've also reduced our expenses by that same amount go ahead no go ahead rolling when you're

[1:47:45] when you're doing the trends analysis like marriage talking about you mentioned as far as having you numbers kind of solidified by June of the year so that does that mean as far as the trended numbers that you're looking prior to that because recently of course we've seen two months where those terms have gone up and hopefully this month will be the third month will be going up so he solidified your numbers in June you're looking at a trend that was actually still flat or correct okay that's correct and so we're optimistically cautious we've seen a couple of good months in the past 90 days but we do have a month in between where we were down three point three four percent so we continue to monitor that we think we have a good estimated number probably a little bit more conservative than what financing and our budget manager predicted but the board because of what they've seen the last two years in terms of those actual revenues coming in they wanted to be a little bit more conservative just so that we don't get into a bind in the future no and I think we should be I just but on the other hand I want to make sure it's relative to trend and actual not budget because budget means nothing to me at this point when you get into two months from the year ending it's no longer a budget issue it's a trend issue for the current fiscal year was eight million eight hundred and fifty thousand dollars total I believe last year yes for the current year that were incorrect such grand we have had to lower that revenue budget by about seven hundred thousand dollars and so at June 30th with that decrease to his original budget he was at seventy four point seven percent for making revenue for the current year so I think what he's seeing is 8.1 million dollar may be a trend for the current year if you take the original budget lists what we've had to lower it so so a 20 by $500,000 down the 20s between 7 & 8 yeah from our original

[1:49:49] budget also we have the issue with budgeting strategy what we have the same revenue stream or very similar revenue stream same revenue different different amounts but or different half cent versus general fund which would be a full penny but the general in the general fund there is very high pressure to maximize the use of all revenues so that we can minimize the property tax and fee pressures associated with those decisions in this fund if they are a little conservative and they budget for a lower amount so they know they can achieve it it doesn't have that negative impact where it increases pressures on fees or on other tax revenues it just decreases what's available to be spent in that in future projects which is their line for economic development projects I agree so if they actually if they budget let's say we budget seven point eight million and they're actually coming in at we actually think trends going to be eight million and they need that extra two million they can they can consider a budget amendment request to council to capture that extra two million they've just been a little overly conservative and so they're sure they can make budget but they haven't increased the pressure like it would do in the general fund in the general fund if we under budgeted we'd be capturing more that we could have put in the potholes or into vehicle replacement or into some service that is a priority for council in this case they're shorting economic development and usually the timeframe associated with executing a project would allow for a budget amendment if we needed to capture a different edition already knew that already existed yeah it's I agree with all of that it's still an issue of trend and that's all I'm asking about is

[1:51:52] trend regardless of general fund versus whatever it's still here is this specific area what's the trend line because it is something that we hope to have available to increase economic development and to that extent and you would say so based off of those expenditures for ikan on development what had those expenditures brought back to us in terms of economic development dollars sales tax increases are these companies bring in higher it sales tax increasing are they bring in property tax increasing because obviously we're spending money to to do something and that would be ultimately to hope helpfully improve the property taxes in the general fund and the sales taxes and perhaps other things to the general fund so this has a dramatic impact based off of those dollars on these expenditures on the general fund relative to how wise those investments have been placed that's very well st. Mary's graphic we have a presentation after this is done that'll kind of really spell out what you're saying as well because there's a huge impact of sales tax and property taxes offsetting each other to help each other out as well so Tina we'll cover that in just a little bit and she'll go more into detail about what you just said you're right on the money though okay you and that may be another day another presentation but do you have data that really go straight to what the Mayor was just been saying about increases in we do we do and valorem tax in increasing jobs and you know home sales do you capture that kind of data we do let me just give you an idea this is this is detailed information than so I'm glad I brought my laptop with me so just to give you an idea I'm going to focus on three areas the business retention and expansion for example at the end of calendar year last last year we helped to generate 319 new jobs which resulted in 449 new indirect jobs we retained 303

[1:53:58] jobs and we had a capital investment of 5.3 million with an annual economic output of 166 million that's just in the Brep business retention expansion program you talk about so when you talk about lost jobs what did we do to prevent the lost jobs well when we talk about retention of businesses and and jobs we secure an agreement a performance agreement with the company these are companies that are thinking of expanding or thinking of leaving the city of San Angelo so if we've retained that company we've retained that property tax on the ad valorem tax role and we've retained those jobs that are at risk of leaving leaving the city if if this company is thinking of expanding in five years and through our talks and negotiations we can convince them to expand within this fiscal year or within the short term then we've secured additional capital investment that goes on tax rolls and increases those number of jobs which in turn turns increases indirect jobs and provides an economic impact we we monitor that data we gather that data and we put together that kind of economic impact analysis for every one of our performance agreements good keep going okay the council has been and I do appreciate the entrepreneurial spirit that the council has displayed I mean you have been very supportive in the past the city of San Angela vehicle Development Corporation has a business incubator and we reinstituted a business plan competition that helped us garner the past two years successful companies from

[1:56:03] within the city we've had innovation ideas that have turned into new companies and they competed for these business plan competition dollars and so we feel like we've generated some new companies as a result of that program we do have companies that we incubate in the business and convey dur and we do provide analysis about how many jobs are being created and as they graduate and move into the city what kind of capital investment they have and we record that as additional economic impact information in terms of target marketing we contract with the chamber and we have a good relationship with the chamber last year they were successful in having three company locations they generated 28 new jobs with 40 indirect new jobs this had a capital investment of 1.3 6 million and an economic output of 21.5 million in addition to the target marketing we have an asset and you were talking about how do we capitalize on an asset we have an asset that's over 743 acres that's the city industrial city San Angelo business and industrial park that in essence had been inactive perhaps I don't know if that's the proper word for for many years and we've been able to sell some of those assets but companies in the industrial park that helped to create jobs and we sold several parcels last year alone we sold three parcels in the industrial park so it does for new companies or companies moving existing locations in San Angelo out there we have I don't have these I'd have to look more but it was both we have companies that purchased property at the peak or as we were in the recovery stages of the economy and so they're waiting to build new facilities

[1:58:06] so we have sold to those that are new companies including FedEx and then we have sold to existing companies who are obviously expanding there at the industrial park those are the three top areas I can talk more about other things that we're doing but I think that helps to answer your your question you know I look at this as one of the things that we have to constantly monitor and challenge because as it relates to our ability to grow San Angelo and jobs and opportunities and new corporations this is singularly the only area that has dedicated funds to do that obviously our general fund and the some of the areas that that we have just talked about are all relative to available dollars and and we're always very tight on those things because we're not increasing enough in terms of sales tax dollars property tax dollars relative to overall growth and development of this city and here's the one area where those dollars exists so it's a critical area for San Angelo relative to the future and relative to all budgeting issues that are made because these are the dedicated funds that have to make sure it brings something to the table and I know that many citizens have been critical of the Development Corporation some years back because so many funds went to areas and businesses that didn't bring anything to the table but actually we lost due to bankruptcies bankruptcies etc so this area has to be constantly challenged and reviewed because it is the dollars that have been put here that go to wards this part of the business not to the general fund so they become critical critical critical dollars in terms of our growth and development so we have to make sure that this is functioning to the highest level possible and the greatest strategic plan

[2:00:12] to ensure these dollars are well spent and bring what needs to happen in terms of economic growth and development I totally agree I'd like to comment on on the the nature of our Development Corporation it is very different from all other development corporations in the state of Texas as you can see the majority of the funds are our ballade allocated they go to water supplies and other quality of life projects and so our our funds are very very limited and the other unique piece about the economic development side of the Development Corporation is that we not only can utilize those dollars and so this is this goes toward that strategic plan that you're talking about we our program I work is very diversified we work on areas that affect quality alive for example the parks and our city hall annex and we look at infrastructure so where we can influence additional businesses that can generate or locate the downtown area where the Development Corporation just recently made a commitment to and so we are very diversified in what we look at and so those dollars are very spread out so which in turn makes those dollars much more limited because we do spread the pie so to speak but we believe that in all those projects they have to meet the spirit of the law the criteria the law to be able to qualify however it is it is very limited because we do sort of spread the wealth so when you say that you say that in the economic development piece you have 2.5 million dollars to goes towards economic development versus the ballot initiatives here that are the

[2:02:17] five million 656 which are those water issues those parks issues those city annex issues is that what you're saying I'm saying both so on the ballot side we were fulfilling some some prior ballot projects that were on the I guess on a certain timetable but on the economic development side we cannot we not only can use it to target new industry and help existing businesses but we can also use them for quality of life projects which includes park related improvements the quality of life of the City Hall hanoks improvements where we help to supplement that project so economic development by itself can can do quality of life as well as primary job targeting and retention so you can break out quality of life dollars versus true economic development dollars yes we can barely contained requirement that the ballot project segment would be at least 20 or 72% that's correct and that what that does is limit the economic development portion to no more than 28% and that I think from a if you back away from a bigger picture perspective is what he was alluding to earlier I agree and that's my question is relative to the ballot initiatives which are obviously detailed right there but then when you get down to the economic development issue those are I'm interested in knowing ultimately quality of life dollars versus true economic development dollars because I think we need to be aware of the difference between where we're investing in quality of life versus where we're developed where we're spending monies for true economic development projects because there are certainly different issues yes

[2:04:19] ma'am I do want to well I know that Roland didn't mention this when you look at the economic development amount of 2.5 million dollars we do have competing economic development entities in other cities it's around us and quite frankly mayor they have quite a bit more money than we do so we have to be more creative when I'm asking the question we have to be more creative those dollars to get planned as far as moving forward so absolutely it's it's really difficult at times to to provide those incentives to those those companies that are looking at other areas so yes we have to do everything we can with overhead that's what I'm that's conversation I want to have thank you thank you you're welcome thank you plan to discuss as far as major funds revenue and expenditures again I do have that presentation regarding our property and sales tax analysis and I don't know if you're interested in a break or if you want to move right into that or however you all might want to break I see a lot of heads nodding yes for a break we are on a break so um we wanted to put together some information to try to kind of give an overview of how property tax and sales tax works together and to give you an idea of where we stand with our existing sister cities and how we ranked amongst those and so that's what this presentation is about first of all why do we care about property valuation well it's the key component of the property tax equation which is valuation which is assessed by the appraisal district times the tax rate which is set by the City Council and that equals our tax levy which is what we budget for property tax revenue on an annual basis that's most excuse me because the evaluation is determined independently governing boards can decide the evaluation or the tax rate but not both okay so our city's current property tax rate is point seven

[2:06:27] seven six per 100 dollars of assessed valuation point six seven seven four of that goes to in some operations and point zero nine eight six of that goes to interest in sinking fun which is our debt service fund for the general debt service if you excuse me our combined local rate is two point five zero eight five per $100 of assessed valuation of that point seven seven six obviously it's the city of San Angelo the county accounts for point five one two five of that and the school district is one point two two of that amount so you can see here that the combined local property tax rate some Angelo accounts the city accounts for thirty one percent while other entities account for sixty nine percent of our citizens tax rate burden this is the historical property tax rate for San Angelo you can see there I don't know if this is a pointer but starting in 2005 we began slowly to decrease the tax rate on an annual basis we flattened out there in about 2014 and we have neither increased the tax rate or changed it since that time this is our general fund revenue slice source you can see there that the property tax accounts for 40% of our general fund revenue while sales tax accounts for about twenty five percent of that revenue and then our expenditures live department our property tax was initially adopted into the Charter and the purpose of the property tax was to fund public safety well you can see from forty six percent of our revenue being from property tax and fifty one percent of our expenditures going toward police and fire that property tax revenue that we do generate is not even enough to cover the cost of those services and the next slide just shows our expenditures by

[2:08:29] category seventy two percent of our general fund expenditures go to personnel and again the majority of that goes to police and fire police police officers and fire personnel this slide depicts our assessed valuation per capita so you can see there in comparison with some of our sister cities on average the assessed value per capita for Samantha was lower than most of them I think Wichita Falls might be a little bit lower than San Angelo but this just shows that per your average citizen our assessed value is much lower than some of our sister cities and so our property tax rate again going back to that equation combined with our assessed value is where we produce our property tax revenue and and so for San Angelo it has to be a little bit higher in order to generate the some same amount of revenue that other cities are able to generate because their assessed values are so much higher they have a much broader tax base this is just a comparison of our property tax rate again with our sister Texas cities and just same discussion that we had before it's a little higher but again that's because of our smaller tax base and so in order to generate the same amount of revenue and provide those services we do need to have a bit of a higher tax rate and you'll see more about that again like I said when we discussed in further detail in correlation with the sales tax revenue this is the amount of property tax revenue by city so Midland is up there of course more right in line with Odessa and Wichita Falls I do want to point out that all of these numbers do come from audited financial statements from 2016 I did want to make sure that we had accurate and up-to-date numbers so that was the most recent year that had been audited so I want to point that out that's where these numbers are coming from in this presentation so this is our text levy per capita so this is the

[2:10:36] amount of tax each individual citizen would pay based on and the amount of tax revenue that we received for the city of San Angelo $352 for San Angelo in comparison with the other cities but ranging from two hundred eighty one dollars to three hundred twenty nine dollars another thing that we take into consideration when we're talking about the tax levy and tax levy comparisons our property tax invent exemptions excuse me so San Angela's exemption is up to 20% of a home's value or at least $5,000 aveline's is 15% or $5,000 Wichita Falls is a flat 25,000 odessa is 20% or $5,000 and in Midland it depends on the value of your property and the location and so San Angelo homestead exemption of 20% also gives our citizens you know some relief when it comes to their property tax bill as well so to start on sales tax our city rate is a point zero one five of that one cent goes to the city and a half cent goes to the Economic Development Corporation our combined local rate is eight and a quarter so again one and a half cents going to the city of San Angelo and the Development Corporation a half cent goes to the county and of course six and a quarter goes to the state of Texas this is our sales tax revenue by sitting again for fiscal year 16 audited financial statements you can see how San Angelo is lagging quite a ways behind any of our sister cities when it comes to sales tax and that in conjunction with the property tax is what we wanted to talk about today our sales tax revenue per capita is a dollar seventy again lagging quite a bit behind our sister cities when it comes to sales

[2:12:40] tax revenue and then this is depicting our combined property in sales tax per capita and you can see that we're kind of close for fiscal year 16 with Odessa and Wichita Falls but we're still even with the combined property tax and sales tax per capita we still like behind all of our sister cities when it comes to generating revenue for those two revenue streams San Angelo was at five hundred and twenty three dollars total per capita Abilene at 570 Wichita Falls at five hundred and three Odessa at 535 and Midland at 592 dollars per capita and so again we just wanted to kind of give an overview of how the property tax and sales tax worked together and and to show that you know while we are being very conservative you know we still have to find other ways to generate that revenue to provide those services that our citizens have come to expect and so with that I'll be happy to answer any questions to expand on any of that provide more information if you have any questions do you have what other cities in total have ours is 72% let me go back to that slide for personnel what do other cities what percent because what we the big picture course is the following conversation we keep trying to do salary and pay relative to those cities but if you take a look at them we're not close to those cities so you look at it and you go okay so we 72% of our funds go towards personnel what do those other cities percent of personnel equal you know that's not something that I've actually looked at in detail I don't want to put Lisa on the slide but she wouldn't know either okay I could get that information for you but so I mean my big point is the fine we can't use Midland Odessa Wichita Falls and Abilene is comparison cities because we don't compare ranked close to them in almost every category particularly property tax and so we just

[2:14:44] need to be cognizant of it's nice to talk about Midland Odessa relative to where we should be but we're not close to where they're I mean they have double the amount of sales tax revenue we have double that's a good point so you look at double the amount of sales tax revenue that they have because they do have those additional numbers that come in I mean they really can afford to have a lower tax rate property tax rate so you start looking at that and you see the challenges that the city of San Angelo has in combining those two which are top two revenue generators we have to be more efficient with our monies basically what it comes down to we do however the reality is we do compete with those cities for employees we just wanted to see how to put this together I just want to make sure that we're clear as far as we start talking about property taxes sales tax revenues I wanted to make sure that I'll be doing the same presentation Thursday evening but to another group that had asked for this but on our part we just want to make sure that we go into especially our general fund when we start discussing that item at the next pleasure workshop with our eyes wide open and looking at exactly what those challenges are and then addressing them accordingly but again I think this is a good presentation by Tina good numbers you put together so I appreciate you doing that I would like to say that you know sales tax is something that we have limited control over how much revenue we bring in and so property tax is one of our biggest tools that has to be unfortunately and if we did have the same sales tax per capita and this slide as are some of our sister cities we would be generating a lot more revenue in that regard and be able to lower our property tax rate and so that's why I know you've talked about a lot mayor about we need more industry we need more commercial base and and that's very true if we did have that additional source of income we'd be able to lower I mean from

[2:16:47] the math that I've done we could lower our tax rate anywhere from 9 to 18 cents and so you know that's it's very important to keep up on that and to try to bring in those new industries and new new revenue streams thank you very important point that's what you have to use yes all right that is it mayor councilmembers we want to thank you of course but to participate in this workshop we will have our next one two weeks from now which we will go in-depth into our general fund in our needs we'll have some some numbers more definitive numbers especially with social tax revenues and property taxes and they'll give us a is a better idea of our forecasting and what we need to go from there so again we do thank y'all for spending this time with us and we look forward to the next one the meeting is adjourned at 10:57

Captured 2026-07-26 · source: youtube.com/watch?v=dowbZmrGBvY