San Angelo City Council Budget Workshop 8-14-18

[0:00:00] so the first line item is workshop agenda so let's dive into that a discussion and consideration of matters regarding the fiscal year 2018 19 budget presentation including but not limited to one major funds revenue and expenditures and two other items needing council direction we'll go ahead and hand this over to the finance department now I'm going to start the presentation we're going to be discussing the major Enterprise Fund the budgets the proposed budgets for those for fiscal year 2019 our major enterprise funds are those that have expenditure budget exceeding 1 million dollars and they are those that will be listed on the PowerPoint here before you and so I will present the summarized proposed budget for each of those funds and then we will have the department directors on hand should you have any more specific questions for them so we'll start off here with the water fund 1 260 of course our primary source of revenue and the water fund is water sales proposed at about 26 million dollars this budget is proposed in accordance with the water rate study that we have completed a few years ago and a proposed two point 1 million dollars is budgeted revenue over expenditure of course in correlation with that plan to grow our fund balance to the appropriate number of days on hand and that's all I really have to present for the water fund but if you have any other questions we'd be happy to answer them number one what's the security in the tremendous increase in sales that's a huge increase Alison you're on I guess so starting January 2019 will be the fourth year of our rate increase per the five-year rate plan one of the largest increases in that is the January 1 increase that's been adopted in the budget or into the ordinance for

[0:02:03] the first three years of the rate plan water rates were on average of eleven point seven percent increase January 1 is the first year of that decreasing decreased increase if that makes sense sorry January 1 those rates are only supposed to increase by 7% vs. previous three years have been 11% little over 11 percent so the increase in sales is due to that increase will see in January 1 2019 what does it mean though in terms of usage because it's one thing to have a rate increase so if you take the 2018-19 actual and say okay there's a 7% increase is a 2,352 larger than a 7% increase okay the water sales are the actual volume was also tracked as a part of the rate study and so while I say a 7% increase that's not true all the way across the board of those rates but on average the residential or residential customer would see a 7% increase in their bill so the rates themselves aren't a direct 7% increase so what you in a projected increase in sales usage we are keeping flat with usage so so what happens if we have another drought or or so what happens right so the drought multipliers are while they also to in conserve to incentivize conservation they also keep our revenues neutral and so that's why we see those multipliers of the five to ten percent twenty percent in those categories is to keep our revenue budget neutral as well so the ref tell us the rate consultant also built those drought multipliers to maintain us in revenue stream during droughts very better if we have a drought and we sell us water we won't make the revenue budget that's my question so I'm not sure if we know what the runoff was this past weekend with

[0:04:08] the rain but we were a long ways away from having a large quantity of water in our legs correct I would not predict the rain we've received over this past weekend to get us out of drought level one you would not one of the challenges in the industry is predicting sales volume and so they typically orient projections around a normalized year and then they we are expected we expect the utility to conform to the usage that results usually usage is tied very much to weather patterns so to the extent you can predict the weather you can predict usage somewhat and and from their project revenue but if we were to tie everything to a weather prediction we'd be as reliable as that weather prediction and it would tend to create large swings in proposed rates so we the industry standard is to use a normalized year and then conform operational and financial activity to the the year you find if you sell less water spend less money do less work that kind of thing talk to us about the 2017 18 actuals so if you take a look at the sales it's obviously through what time period and what would you project for the balance of this year my book sheet real quick right now you're at 74% of the budget 75% of the year has lapped so right now you're right on targets so relative to that what is the increase for 2017 18 to 2016-17 is it in the same category as the increase that you're projecting here just I want to make sure I understand your question are you asking for the the

[0:06:11] 2.3 million dollar increase is that correlate to last year's increase in other words if you take the 1617 actual compared to where we are in 1718 what is the number is that percent up percent down where are we relative to trend I apologize I don't have 1617 actuals with me I just have 1718 for the most part we've hit the rape plan targets as I specified or as as we've said so we've come very close to meeting the targets in five-year rate increase so just generally speaking you believe that the 2017-18 actuals are an increase over the 1617 actual yes I do believe that we will that this 2.3 million dollar increase is in line with what we should see or what we should expect okay and then your other tell us about what other is because I'm not sure what's on that line other includes quite a few different revenue streams that we receive lake leases is one of them 60% of those lake leases come into the water utility funds we have a sewer fund transfer so the majority of our division set we have seven divisions most of them do both water and sewer work utility maintenance water quality customer service and so but they're all paid out of the water fund so we transfer money to cover half those costs into from sewer to water so we do have a revenue stream from our sewer fund as well as we receive the camping and lake entrance fees around Lake now is worthy this also includes late fees tap fees one thing I want to point out in this other category is we did decrease our late fee revenue from the one point five to the one point

[0:08:14] two six million dollars so we did decrease that revenue stream since we have changed how we apply late fees auction items things like that are in this other category yes back to your water sales question yes June 30th of 2017 our water sales was fifteen point two million dollars and as of June 30 of the current year our water sales are at seventeen point six million dollars so what percent is that it's two point four million dollars increase I had not done the percentage but I can do that for you as well let's do it real quick and last year we did and year for our water sales revenue budget at ninety nine point four percent okay and you mentioned a minute ago about the water fund balance let's talk about water fund balance I think the goal is to be at ninety days is that correct seventy-five days and where are we and what does this plan indicate that we would maintain as a water fund balance the current amended budget the ending fund balance is at sixty two days and our goal is seventy five wire wait sixty two with a plan of seventy-five the plan we weren't going to reach that seventy five day Col until year four and five of the rate plan so while we're still at only sixty two it's a lot better than where we were at the beginning of the rate plan so we weren't expected to hit the seventy five days until this next year is that also because we took one almost six hundred thousand out for a water study last year that we approved no those were that did not change the days of hash on hand that was within the existing budget okay do I have questions from Council Billy I think we're still on the revenue I had a question about the expenditure allison in the capital expenditures what's included in that capital expenditures include machinery vehicles those type of things but they

[0:10:16] also include the sewer line replacement projects such as Belle Street College Hills those type of things so that is where those projects are funded from is from the capital budget so you're looking at purchasing additional vehicles yes ma'am we try to purchase some amount of vehicles every year Fleet Services helps us with guiding us in terms of what vehicles need to be sold at auction and replaced so what is in that budget what are we buying in that budget this year we've budgeted three hundred and seventy four thousand dollars in machinery and three hundred thousand dollars in vehicles the rest of it would be towards the infrastructure such as water line replacements those vehicles are what for what reason we have a hundred and thirty-five employees out of the water and wastewater funds and so their utility pickups dump trucks all those things that move material back hoes those type of things so right now we have some that are way beyond their usage yes we do I think that Ryan guides us in terms of usage how many miles and how how often that truck or piece of machinery is coming into the shop for repairs and those type of things so we're only replacing those that are ultimately costing us more money than their value so when you look at capital there's no capital funds here dedicated to quote and it might be in another area but you can tell me that and though for example the water treatment plan additional wells that hit coreographer any of that stuff is any of that inclusive in here or is there another area where that would be inclusive they could be included in this capital line

[0:12:18] but they also could be in our 512 fund of capital improvements and those projects would be or the debt for those projects would be issued out of those those funds so is there any plan for this year 2018 19 budgets yes ma'am there is plans especially for the Hickory as we mentioned close to we're looking at forty million dollars ballpark for that Hickory expansion of the well-filled plus treatment plant expansion and so we will be that is budgeted or not budgeted but it is allocated in this plan so where do we see that just so I know where I'm looking at it it's under debt service yes it would be issued or it would be an increase to our 261 debt service account but r5 Allison has capital money budgeted both in fun 260 and in fun 512 and then also of course in the correlating sewer funds and so if we did issue debt we would likely use that money that's been budgeted to leverage and create some of those bigger projects the funding for those bigger projects so are we looking at those funds today to better understand them we need to because we need to understand what the plan is what's budgeted what's not budgeted what we can anticipate in 2018 yes and I think if we were to go to do something like that like to propose to issue debt then that would be a plan that we would bring to you before we even initiated that process I know but if we're those certificates of obligation a part of this year's budget they are not yet there so that's why I'm asking the question no ma'am it that would be an amendment to our budget if we decided to go that route so we need to know that okay yes really on the chicory water supply the Sun 5:16 isn't that where we would see any 516 fund is the original 120 million dollar loan that was done for the initial

[0:14:23] project there are some funds still available in there and so we would utilize those funds for the expansion but there is not enough to cover the for the full 40 million dollars okay okay and I have one other question on your personnel line Allison that $80,000 increase is that employee raises or adding additional personnel or what's included in that personnel we have not added any additional personnel those would just be the increases I'm not sure if we saw health insurance we saw some health insurance increases and things like that and so those would be attributed to that okay so we'll talk about the health insurance that the next meet budget meeting yes ma'am only meet to discuss the general fund we'll discuss health insurance increases on August 28 do I have other questions for Allison from counsel okay no Allison you mentioned and it came up at the meeting last Tuesday evening I think the question was posed to the mayor and this is zooming out really to the hundred thousand foot level at some point we know we're gonna have to address our needs at it the the respective treatment plants where is that a totally separate conversation and if it is you know you're not I'm sure you're not prepared to talk about today but when would we talk about that and then can you just give us an idea how big that number might be I mean that's why I was asking questions about the 2 6 1 and the 5 1 2 because it's certificates of obligations so if you're talking about a water treatment plant where do we see that in terms of when we plan it where the

[0:16:26] dollars are I do anticipate to be bringing the the water supply engineering feasibility study and they do look at both treatment facilities the wastewater plan and the water treatment plant and projected costs for both of those and so I do anticipate within the next two to three months bringing that to y'all so that you do have a idea of cost of those timeline of implementing those projects and then also we would look at as Tina mentioned how those would be funded at that time shouldn't we be at this point in time since we're discussing budgets having that conversation as we discuss the budget we do have that size of a an expenditure we dedicate a conversation to that that project it's very hard to prove this part of the project without knowing what's down the road there's no part of the project in this budget this is operations that would be a capital project shouldn't we be discussing capital projects as we discuss the budget if we're prepared to at this point the consultants have not given us an idea for about 10 million or a hundred million or two hundred million I think we need to know that I think she said that they would bring us that in a couple of months but in a couple of months the budget will already been approved we will amend the budget for that kind of project we'll have a dedicated conversation to see if council wants to move forward just like we did with direct potable reuse we had a series of conversations with council do we study this yes then we brought it back here the study results and cows ultimately council said we're not ready to move forward with that and so we'll do the same with you if we're talking about a water treatment plant we'll have some initial information from the consultants on that and they will I assume advise us about what the next steps might be and we'll have that conversation we'll go with your direction at that point and we'll make the budget conform to your decision in other words if it needs to be amended at that time we'll bring the

[0:18:29] necessary documents to amend the budget to conform with councils direction I just know I would have a hard time approving a budget for 2018-19 without knowing what that is that front because some of the decisions that we would need to make would be finding the money to do that where we do it so when we take a look at this I go okay it looks great but where are we going I think that's a long-term decision it may not even impact fiscal year 19 it may be something that we study next year but it may be pushed until fiscal year 20 or beyond so I mean for this particular one as we look at it if we don't have the numbers I think we need to go forward with what we got I think they need to know what a water treatment plant is going to cost and I mean correct me if I'm wrong is it over a hundred years old yes it is what is the life of the water treatment plant I will say that we still have a very well functioning water treatment plant my bigger concern would be the wastewater treatment facility but I think as Harry kind of mentioned it might not be that we issue debt for those treatment facilities because there's still a lot of permitting and those type of functions that still take years and so there may not be construction for two to three years so we may not be issuing debt this next fiscal year it may be next year or the next so I think that while I do understand your point in there that it we want to look at this budget as closely and plan for things as much ahead of time but there still might be some items that are in the future but in the event that we need to leverage that this year we would come back to you with a plan within this budget to make that happen so if in fact we needed to treat more water from the Hickory aquifer wells at what point does the water treatment plant not function to bring more water in are we ok if we need 8,500 instead of the what we're doing now if we have to

[0:20:38] bring more water in because the drought continues yes we we lose continual supply from the lakes what risk do we have that the water treatment facility plant cannot handle treating more water than we're treating today I think I just want to clarify the surface water treatment plant is the older plant the hundred-year-old plant while the chicory is still a much newer facility we do have the capabilities to pump and treat the 8 million gallons so are you talking about increasing the 8 million gallon plant or the surface water treatment plant I think you answered my question look at a demonstration so I think we were not aware at what level we could not we could or could not treat more water from Hickory I think you answered that question you did great you did great you know your stuff mayor yes me if I could take a step back I guess we had a study done what is it my rough to us raft tell us rate study they they're the ones who and analyzed and helped us implement the five-year rate plan okay and so next year is the fifth year is that what I understood you January 1 will be the start of the fourth year so the rates go all the way through 2020 okay and have they made some recommendations on what we should include in our capital budget no that's more of the city's decision in terms of infrastructure needs they are more of the financial side of things they don't guide us on capital decisions they would include or recommend that we include the things that council said they wanted to pay for in the next series of years and I think what we're saying is we appreciate that it comes forward and council decides but we need to know because that's your job your business you know it far better than any of us up here you're our expert we want to make sure that the capital included in this budget covers your needs and the citizens needs as it relates to water

[0:22:42] treatment and sewer yes I do believe that this budget will accomplish that okay do I have further questions for Alison move on to your next fund in line with the water rate study there is a planned excuse me planned contribution to the fund balance also again in line with that race study to grow the fund balance to where it should be I'll just say that the past three years of rate increases have been close to twelve point two five percent in the sewer fund and in January 1 2019 that increase is only supposed to be three percent so we do while we are increasing rates January 1 2019 they are not near as much as what we've seen in the past three years so if we have a January 1 increase this year you might not have this with you and it's okay does the increase start to go down continually go down because you've said we've had the increases they'll increase this year's the lesser percentage then last year the first three years both in the water and wastewater fund were elevated percentage and then the last two years are held steady in the water fund 7.25% and in the wastewater 3% so they are we won't go down another three or further down than 3% but for these next two years it is a three percent increase and so that's seven hundred and fifty four thousand dollars is relative to that seven percent increase three percent percent yes and I think the biggest question is going to be on capital a million seven six eight five eight for capital expenditures can you please talk to us about what that is about so this

[0:24:48] year our fund balance contribution is less than it was last year part of the raft house rate plan so this year we've budgeted three point three million dollars in capital which is this 1.7 million dollar increase but we do feel that with the street program and wastewater treatment plant those type of things that we will see an increase in need in capital cost so the three point three will go towards infrastructure needs which is an increase over last year but we are seeing more street projects being bid out and those type of things and we'll need to try to keep up with those as much as possible so just go through the three million three three nine eight nine four and give us the highlights of the biggest expenditures in terms of what streets exactly where that is because that's a big number I I don't have a line-by-line in terms of streets but I do have if you just give me one second I'll get it pulled out so similar to the water fund we also have machinery and vehicles budgeted in this line item so we have close to two hundred and fifty thousand dollars for machinery and two hundred thousand dollars for vehicles and then 2.8 million dollars would be going towards capital infrastructure needs but if we have a project similar to Belle Street for instance this year at six million dollars of worth of water and sewer twelve million dollars combined we'll need every penny of that 2.8 million dollars to keep up with the sewer line work and water line work with the street just a number we picked or there's no specifics in terms of what that number is applied to it's just a number we think we're going to need there's no game plan in terms is that Avenue P is that an Avenue in with Avenue P there is no sewer water utility work in large quantities but yes it is a number that basically came from the rate plan in

[0:26:55] terms of capital expenditures they did have copies of the ten year eighty million dollar Street program and so we built those anticipated years of projects into this budget as much as possible there you remember a discussion we had about about a big 20 million dollar Street project and that less than half of that was actually the street that the bigger 22 million dollar project yes we specific the bigger piece of that was the utilities and what they've been trying to do is avoid issuing debt for the utility side and they've been trying to cash flow that so the number she's got plugged in there she's thrown all the capital money she can in there to because she's trying to avoid issuing debt at some point she may have to issue debt for the utility side of those Street projects but at this point she's trying to cash flow as as long as she can to avoid those debt issues or at least push them push them out other accounts is going into this capital account so that just like mr. Dane said we can try to keep cash flowing these projects strategically I think that's a great plan and there's no question about the plan I think it's a great plan the question mark is just if it's focused towards a project what is that project it is not focused towards a single project so this is basically what we think we can fund exactly within that rate study within the rates in that in that five-year plan this is what they've carved out to address those needs and we think the needs are going to be greater than that but she's trying to avoid that debt issue as long as possible perfect strategy just want to know what three million three three nine biases it's a big number I think we ought to know what it buys --is marijuana ad as well that Alice did the study and Alison mentioned a while ago is that they did

[0:28:58] look at the plans that we had over the 10-year period so there's an indication that we know that will be worked on over that 10-year period so when you start seeing numbers that are tied in that's also tied in based on that that that overview that they had the copy of the planet we had to tie in or forecast what needs may be for those capital items as well that's why I asked the question if we have that plan why does that plan and so I think right now you've said we can afford the three million 3:39 in terms of capital improvements we just haven't decided which projects that three million 3:39 is going to bob correct do I have questions from counts Billy yes please I have a really basic question Alison do you get any money from the general fund to fund your expenses no ma'am so your revenues take care of all that we're seeing in your budget is that correct okay and then my other question is real itsy-bitsy but under revenue there's an item that says interest and our original budget was a hundred and fifteen thousand three ninety six what is that interest on interest on our investments and in our money and market accounts are you unbalanced the fund balance earns interest they are finance folks invest those those money's to try to earn interest on them and that's what that is and it's up a little you'll see interest accounts up a little because interest interest rates are up a little two more times this over this following they say pre Dec two more rate increases so that could mean additional income if the rate increases go up that's it and it's a good thing rates have been down for for a long time it's a good thing if you're an investor if you're a borrower you want the deliberate slow but for this particular question it's a good

[0:31:01] thing that it that rates are up and our finance department has done a our award-winning finance department has done a good job of good plug the 61 day monies that we're talking about that fund balance that we're trying to get to 75 that's the money that's being invested yes ma'am okay they try to put it to work so that it does something okay good so on our operation and maintenance the four hundred thirteen thousand dollar increase talk about that number as we have between capital and om you know 2.2 2.3 million dollars so it's a big a big number right so we are seeing some electrical cost at our wastewater treatment plant there it's pretty high out there as well as we are seeing increased maintenance of pumps of lift stations and at the wastewater treatment plant so that is to account for those for those maintenance items we're trying to get pump replacements and those type of things is that in line with what would have what was in the 2017-18 budget in terms of dollars yes and also forecasting pumps that we do know are on kind of their last leg and but building a budget that we can you know replace those before they fail do I have further questions yes Tommy this may be one of those the answer maybe it's a it's another day another another conversation but I'm aware we have some large capital needs with with respect to our our water reclamation some issues I know specifically in in my district I am assuming this would track your answer to the previous we don't necessarily have those items budgeted here but it would be you know when when

[0:33:06] the time is right to to have that conversation you would come to us you know I'm thinking specifically out at the lake that that would be another day another conversation yes sir but we can I can talk about that a little bit in terms of the lake Nez where they we do have the sewer evaluation that is going on right now when will that be present do you think that that will be presented probably towards the end of this year if not early November October to January time frame yes right now they have flow meters set because they are trying to analyze the inflow that they were that that area receives and trying to do some evaluation of our eggs are of our actual system and so they are doing that and then they will you start pulling all that data in to provide the recommendations so I do anticipate that later this year if not the first of next year but that is going to be a considerable capital cost out there in that area we do have or I have ideas of ways to fund that but also it be a plan we would be bring back to you to to look at thank you do I have further questions from Council all right Allison your next project next up we actually have our solid waste fund so the primary revenue source for the solid waste fund of course is user fees they're structured to fund the eventual permitting of a new landfill site on the 320 acres already owned and dedicated for that purpose and these costs are expected to be a approximately 5.5 million dollars and I have Shane and Patrick to be here to answer any questions you might have about the landfill I listen I just want to thank you for that presentation you walked away but thank you good job and thank you for knowing so much about our water issues Thank You Shane you're on everything in the solid waste fund the major

[0:35:18] difference is interesting here are basically accounting issues of how we've kind of restructured what we're how we're doing some of the accounting functions within it Tina may be able to explain a lot of that a little easier and I can means I'm not an accountant but that's what you see is the majority of the difference here differences are here everything else is pretty much kind of the same as we've done it in years past over the last three years anyway so talk about what you just said Tina about a new landfill because you said something's included in the budget about the new line that's what we're what we do and why you see such a large fund balance in this account not necessarily it's on this slide but when we start looking at the fund balance in us trying to grow that fund balance so that as we were ending the the lifecycle of our current landfill we're still 15 ish years out so depending on what our annual tonnage is but we're trying to set monies back so we can ensure that we have the funding necessary when we get ready to go into the to the next phase of a landfill whether that's permit mod an extension of our existing or whether we're trying to permit the new landfill we need the these money set aside so we're not borrowing money to to move forward we actually can pay you know with existing monies to move forward obviously there's a big conversation going on right now in terms of recyclables so what does that do to us in the next budget cycle in terms of this budget any implications to this budget that we need to worry about now not currently I believe Republic Services has approached me and will be visiting with y'all in the very near future as a council concerning the recycling industry as a whole and what that's doing to us but currently I'm not projecting changing any of our budget to accommodate any of those issues there so but Republic Services will be bringing

[0:37:24] they they have requested and they'll be formally requesting in a form of a letter to to address Council to to visit with y'all about their concerns about the industry and some changes that we may need to make within our service the services that we currently have to look at to address those issues and so but I don't I'm not expecting any of that to have an effect right now as we stand today on this budget we talked about the landfill having potential 15 more years is that controlled by the EPA meaning the the level of height that we can get the level of breadth that we can get relative to the existing landfill yes our existing permit right now it is regulated by the an exact footprint and also by the height that we can actually the depth we can dig into the ground and the half that we can actually go vertically that's all regulated by the TCEQ and in the permit that we have so now again when we talk about expansions of the landfill we're talking about we can do a permanent modification and we can we can increase the height we have actually purchased another 320 acres of land just to the north of our existing landfill we could do a permit expansion that moves the landfill into that area under our existing permit or we could create a new permit for that new land as well too so we have multiple options and again like I said we're built and we're actually building fund balance right now so we can make sure that we had the fun fundings available to pay for that expansion in the future so right now if we wanted to we could have applied to to change the permit to allow additional height to the land we can we can we can we can apply to the tcq for a permanent modification to expand vertically of the existing landfill permit that we have now alright so again what's the other on here it's the 314 almost three hundred fifteen

[0:39:30] thousand dollar increase can you tell us what's in the other piece of this the bulk of that is due to a change in accounting practice where the billing and franchise fees are flowing through differently so that we could maintain consistency with all of our enterprise funds flowing through in the same way so there's not really an increase it's just a paperwork slide it's basically a pass through it all has to do with the accounting function of it and how we're there I guess when what end you're booking the revenues and how they're booking the revenues versus the expenditures so there's really no increase crude correct okay so and the operations and maintenance up almost a million dollars talk about that with the 314 there at the top I think another part of it is for an environmental engineer I think we discuss yes in in years past we had we had budgeted basically we were doing revenue over expenditures and just dropping that revenue additional revenue over that this year we we opted to basically do a balanced budget this year and we have put some of that money basically will be a contingency for any engineering services our consulting your engineering services that we may need we do already budget some funding in there but again basically pass a balanced budget instead of revenue over expenditure we basically place that line in there as it can increase that is a contingency to and and again some of it is how the accounting function of it looks net effect is you're shown a $300,000 decrease so it's not net neutral you're losing funds somewhere and again I'll have to refer to him because of the accounting on that side of it that you're budgeting revenue equals expenditure rather than last year

[0:41:33] we had budgeted $300,000 to contribute to fund balance 300,000 rather than being budgeted revenue over expenditure I think Shane is saying that they've budgeted within their existing budget and the event that they may need to use that money this year so are we saying it's okay so it shows $300,000 decrease so are we saying that's really going to happen or what are we saying well the key there is it's not a decrease in the fund balance it's a decrease from a $300,000 net profit the net profit is budgeted not at 300,000 but at 0 and that's because he's budgeted that extra money in that professional services line does that make sense instead of budgeting a net profit of 300 he's budgeting a net breakeven and I appreciate the net conversation I just am looking at the screen and it says you're decreasing 300,000 so if it's a net zero then that should be 0 so that's all I'm asking all right well the what that is expressing is that 0 is 300 thousand less than a $300,000 net profit that's what that means so that net that net revenue over expenditures went from 300 to zero and that's $300,000 less than it was last year okay Jonah is showing the decrease over here in the increased decrease line but we're showing in the 1819 as well this is call municipality accounting yeah but you started that man I'm sorry I'm just jumping in here you started out asking about the O&M line the 944 increased 944 thousand dollar increase and then I heard Tina say something about three hundred and fourteen thousand on the other line somehow factored into that 944 thousand that's about where I got lost so could you um kind of back up and

[0:43:37] say it maybe where I can understand a little just repeat it maybe a little sink in I'll say for the accounting side of it that is a wash with that 940 for the 314 is just a change in accounting practice we wanted all of our enterprise funds that contributed a franchise fee and or a billing fee to the general fund or to the water fund to be consistent and to be accounting for them all in the same way and so that change reflected an increase in the revenue but is also an increase in the in the expenditure line down there as well franchise and billing with that said ok see you have three hundred fourteen thousand almost three hundred fifteen thousand and then nine hundred forty four thousand in om that isn't exactly a wash so there that's the difference of the six hundred and forty nine thousand but relative to last year and part of that is again what Shan is budgeted into the current year operating budget rather than letting fall to fund balance all right so what increase in fund balance are we looking at in the 2018-19 budget for the current year we do not plan to have an increase to fund balance unless we have expenditures that are less than revenue during the actual activity of the fiscal year what's our funding policy here the current fund balance budgeted for this current fiscal year is just under three million it's two point nine eight million dollars their goal is to get to that five point five million dollars over the next 15 years they currently have about a seven hundred and ninety day fund balance an eighty pardon me how much seven hundred and eighty days but again they do have that goal of getting to the five and a half million that we will need at that future point in time the fund balance today is the fund balance that you believe is correct correct moving forward and and we will the monies that we actually put into contingencies unless we see something some drastic issue at the landfill or there's something that is really just completely unexpected we we fully expect

[0:45:41] that that the monies that we actually budget didn't you know into that contingency contingency this year will actually draw up to fund balance at the end of the year as we have in the past okay Harry would you like to ask a question if we had to permit the new 120 acres next year for whatever reason that cost B to permit that so that we understand you got a fund balance a five point whatever million dollars what's that what's that cost gonna be if if it was uncontested and everything just went perfectly smooth to me if it's contested and we have to fight it in court and we have to do all the things and we have to go through the extra tcq hearings and all the different processes it could be as high as four right now you have you say about 15 more years on the current landfill and that's without asking for additional height or breadth width of the current footprint or the footprint allows for additional thing and with the EPA EPA already approving that additional footprint correct we and it's in its approximate it kind of varies different year from how much tonnage we actually get from year to year but we're saying 15 years of additional life on the existing permit that we have today as the bulk pickup program added taken away some of the lifeline of the we we have we have seen over over the last several years we have seen a steady it's a small increase by the state increase we really saw a spike when we had the the storm but the the big rush back in in 12 and 13 and 14 when the oil field we had all in $140 barrel and we had all the although transient labor in here and in the oil fields were just going crazy we did see a pretty good uptick in in in our tonnage at the landfill at that point it dropped back off and kind of

[0:47:45] evened out but we have seen every year we see an increase in times just a little bit a little bit I don't know that the book collection has has really caused a tremendous increase although I have been I have been surprised at the tonnage we continue to see with our boat collections are you know residential book collections and also we're still seeing a tremendous use of our citizens freed renting program at the landfill as well too so it's a it's been amazing how much how much trash we're getting rid of so do I have questions from Council shame on your personnel cost and your capital cost you should join a decrease what for the upcoming budget can you say what that give me some specifics on that the decrease in the was decrease in the personnel was due to a retirement and and the shifting of the about the funding of that retirement and then they're not going to replace we we actually in the landfill fund we pay percentages of certain salaries of administrative salaries and so and how it's structured right now it the position as it stands just hasn't been replaced so it's at some point those salaries may increase again but right now that's what we're looking at too or it was due to digital retirement so I'm not planning on replacing it in 2019 not currently not currently okay okay in the capital decrease and the capital decrease was we actually moved move funding out of the capital and placed it back over into into our regular general operating accounts because we're not expecting any anything out at the landfill to cost us any money this year it should be everything now hopefully capitalized should be picked up

[0:49:49] underneath the contract but we have a public services and and we should be able to hopefully start over time started can't continue to decrease our capital costs over time out there so well now we still have that we still have two or three vehicles that that would buy out a capital for our the people that work under solid waste and so we still have those things and we are planning on this you're replacing one of the pickups one of the pickups is about twelve years old and and the guys in it every day so from an enforcement standpoint so and Shane just one other thing I just want to make sure that I'm clear what is in the fund balance right now that's 3.3 million is going toward the potential 5.5 million for the for the either the expansion of the existing permit of the landfill or the permitting of the new land that we have set aside for for landfill expansion or a new landfill thank you okay any other further questions for Shane with no further questions we'll move on to the stormwater fund and the stormwater fund of course the primary source of revenue there is user fees again and the only big change that you'll see for the I'm sorry let me change your slide for you pardon me the only big change you'll see there is of course in the capital account and there is a planned use of fund balance there for three hundred and thirty seven thousand dollars for capital purchase such as old equipment and technology replacement so but it's a million dollars so again kind of define what that million dollar buys us is our plan for the use of that in the capital account we're again planning on

[0:51:54] purchasing there's currently in that line item there's four hundred thousand dollars budgeted for improvements not building a four hundred and ten thousand dollars budgeted for machinery and for vehicles there's a thirty thousand dollar budget and then of course for technology capital as I mentioned 103 thousand dollars in that line item in the capital that it does includes not only what we were thing from the sweepers pickups and I actually eientei we're planning on purchasing this you're replacing a new a new sweeper purchasing a jeder cleaner more mowers for that crew because they're the ones that take care of all the stormwater mowing but they also take care of the right-of-way mowing for us as well to within the city and then also we're replacing one pickup within the division the rest of the capital is like Avenue P project that's where we that's where we place and we fund Avenue P project and also within this year is also in the capital we put it over there to actually for the engineering services for the to start the process of the lake dredging project so that's that's what those capital funds are for right there okay and the 103,000 it buys what was the amount budgeted change for technology capital o the technology capital that we have in there the the technology capital we're looking at actually coming wanting to and again we budgeted it to look at working with water utilities and stormwater and and then the general fund is well to to look at asset management software currently we're we're lacking in our ability to have an asset measurement software program that they can actually function and us be able to to properly utilize it to pull down information and so we have actually budgeted those budgeted that

[0:53:57] into the technology account to come to Council at a future point during this year to ask for you also allow us to purchase an asset management program for for basically all of Public Works to use so asset management means what anywhere from anywhere from from our standpoint from the streets that way we can track work orders on streets all the puddles that we're doing we can track how much material and labor costs for each street segment and also as we're going along and we're doing all the reconditioning stuff that we're doing the belle streets and the and the MLK's we actually have a database that we can compile all of this into and easily pull it up and it also works with the Fugro study that we that we had and we're talking about pavement index scores as we start working we can work through our GIS and this asset management software and as we're doing that we can ensure that as we're doing processes the roads to to increase their functionality or the route ability or just the quality of road it from a repair standpoint that we can track that and actually be able to maintain the study that we had back in 2015 so that helps us there from other from from a water utility standpoint being able to track all of the water line replacements the sewer line replacements all of the parts that are being used there can also track all of the stuff especially in the utility maintenance division where they they have so many different assets that that they're tracking basically on paper right now and we would like to get this to where we can actually understand as I work or an amazement system we're using now it's all about paper we'd actually like to give this to where our guys are actually doing it out in the field on an iPad out in the field and they can actually do the work orders out in the field and then it goes all the way through the system and then we can in my office I can sit and how much money did we spend repairing this street this year and then that way I can actually track

[0:56:00] those cost versus having somebody sit there and work order after work order after work or on paper ok 103,000 does that buys the software so are we planning to because we want to make sure that if is what does one hundred and three thousand dollars cost is it it's the software and also for hardware for my employees as well too because we will have to have actual like iPads or it doesn't have to be and that's just what what I know so but something like an app ipad so the guys can take it out in the field and they actually have something where they can actually physically work in the field while they're actually doing the job in the hundred three thousand dollars buys the installation of the correct of the soft management software and so then there's going to be a learning curve in terms of everybody understanding how to use it so there's a plan to make sure that your staff understands how to use it yes do I have questions from Council Billy shame on the three hundred and thirty six thousand nine ninety one that's a decrease of expenditures over revenues it's joined it right now you have fun balance of three million five so do you use some of that three million five to make up for that decrease right there right when we started the program when we started the stormwater program back in 2010 a portion of what we of what we decided to do at that point because that way is an equipment replacement fund and basically what we do is we we set aside revenues over expenditures every year and drop them into fund balance and we we did that on purpose over time so as we knew that we were gonna have an you know we bought everything brand-new

[0:58:03] upfront but at some point in time we're gonna have to start replacing it our equipment replacement fund from our 501 and our general fund is some well it's quite limited in what we're able to do from a from a global standpoint you know and what we need to do from equipment replacement already adding an additional burden on us from the stormwater division onto that would would be even more detrimental to our 5:01 fund so equipment replacement fund so we decided at that point that we wouldn't start building fund balance not only one for equipment replacement as time which is now we're starting to use it to replace sweepers and those type things but over time so we wouldn't place any additional burden on the on the 501 fund also we do Bank continue to bank money in the fund balance to to pay for our larger projects as we go the dredging of Sunset Lake or if we add aqua swirls or anything like to that that to the to the inlets into the river things like that so we're cleaning up cleaning up our stormwater we actually try to build our fund balance so we can actually pay for those larger projects up front instead of again trying to borrow the money to to pay for them and then figure out how to repay him on the bond the back end if you were to come before City Council and had a major project going on you would share with us how you probably would fund it out of your fund balance and not be looking for correct correct and that's the with the with the dredging of the Sunset Lake that's exactly what what we're looking at is is building that building the fund balance in this fund enough to cover the cost of that construction we have a spreadsheet that reflects date of purchase of equipment life expectancy of equipment so that we can take a big picture look at what we have and when to anticipate the need or do we just wait to see how long the equipment will last

[1:00:05] and then react to that we actually in the in the stormwater fund when we actually started initially purchasing the equipment we did have a spreadsheet projection that kind of showed we're buying it new here we're expecting its life expectancy this and we'll start replacing it here we did do that within the stormwater fund the in Ryan over vehicle maintenance he can of course there's over 600 some pieces of equipment that he deals with on a spreadsheet on a daily basis but but we also have some of that as well too however he put when we started stormwater that's kind of the basis of that we went by that we need to make sure that we have this much fund available that you know in five years seven years and ten years depending on what piece of equipment was in our expected life expectancy on it and so that's kind of how we've built the fund in stormwater however you know Ryan's he puts because of such a large fleet and because of such limited funding to replace that his dynamic sir or the formula that he uses to to do that whether its age you know in mileage and and and fuel economy at that point in repair costs and how many times how many times were they seeing in their shop versus not seeing in the shop those are all the different aspects that he looks at when he's looking at equipment replacement throughout the organization Marion's your question is much bigger and much deeper than just this conversation we've had and it goes to the heart of this topic of asset management software we have thousands and thousands of assets which are capitalized and we track those from an accounting standpoint but they are varied from the kind of electronic equipment we're using in today's meeting to a sewer lift station out in who knows where that gets seen once a week or however often they get serviced predicting I think that's where you're

[1:02:09] headed predicting the useful life the maintenance expenditures and the anticipated need to replace it gets very complicated and in small systems well those guys have always done it they know and they remember but ours are our assets are so varied so complex and there are so many of them and in this day and age employees don't necessarily stay for a whole career they move so you lose that institutional memory that's that goes to your question I think was leading to the heart of why we need something to help us track those assets how long is that asset how long is that lift station out on the backside of the airport or wherever they are how long is that gonna last have we got a plan for replacing that they're not cheap when does it need to be rebuilt that kind of thing that's what they're trying to do they're trying to get ahead of we're playing catch-up on so many of our infrastructure issues these guys are tired of playing catch-up they they won't get over the hump and and get ahead of those issues so they can come to you and say in the next five years we're gonna need to do these 16 things and and they want that software to help with that so that they don't see surprises they don't like to surprises any more than you do they they're they're trying to figure out how to get ahead of those needs so that we can plan for them financially and operationally so your question is a very good one and it's a very tough issue when you've got this many assets of all different kinds so it's just the best way to try to figure out how to budget the priorities and from that standpoint this fund has been a success in that they have saved the money each year so that they can draw the fund balance down to pay cash for those things and not have to borrow

[1:04:11] and that's really the ideal situation if they will put a little aside each year so when we do need that new streetsweeper or new whatever they've got the cash we just write a check we've got a couple of places and we're having that kind of success this is one of them what we want to hear a good conversation thank you do I have further questions for Shane on the storm water fund yes Elaine mentioned Sunset Lake what about Park View like have we looked at that for future or if we can fit it in as a side-by-side project the additional funding isn't necessarily there and again when we go back and we look at the capacities and they're available available capacities for their ability to intake Park View Lake is still in much better shape than sunset lakeya's and so it's it's still parked like it's still doing its a job for what it's supposed to be doing and another of course another hiccup with Park View Lake is one is proverb it's privately owned property not city-owned property so although we can do it we it will take Council authorization for me to to start working on Park View like it does it is it does provide a very positive effect on our on our system however it's still a little different dynamic and how we have to go about it but again part view lake although I know that the people that live around it would like to see it see it dredged it's still operating at a high enough capacity that it's it's doing its job right now from from the cities aspect as to where Sunset Lake is has quit doing its job so but again it's it's out there it is it is part of the system that we look at and what we're in what we're doing it's just from a priority standpoint it's lower down on the totem pole in Sunset Lake yes because it is privately owned what's the city's a a shinto Parkview lake from a maintenance

[1:06:17] and operation standpoint nothing but from a from a stormwater quality perspective we do have interest in that Lake because it is providing a service to remove flow tables and in solids from from the water stream going going into our River okay thank you do I have for that yes Tommy um Shana again this may be one of those another day another discussion questions but you know we we have discussed on more than one occasion there's not a one of us on the council sitting up here that doesn't have a stormwater a drainage flooding issue existing today in our respective single-member districts at what point in not necessarily this budget but in any budget does that come into play in your planning stormwater fun okay this this stormwater fund and of course we and instance the day we started this there's there's always been a lot of confusion about this the stormwater fund and how we have it set up right now is to satisfy tcq and EPA regulations on storm water quality not quantity what we do every day is not a is not a quantity or a flooding we're not we're not trying to abate those issues we're not trying to fix those issues out of this fund this is strictly us looking at how we can make the water that's going into our River and going downstream into our Lakes cleaner and that's what this fund addresses and that's and that's what they that's all these monies do a bigger discussion does need to be had with counsel moving forward we are looking at some we're a new permitting period is coming up with this that we have to renew our permit we're going through those processes right now we'll be bringing those to y'all in the future it's something that we will need to look at going into the future maybe not today in this year but

[1:08:20] we will need to start looking at and what we want to do about fees with this we have an increase we're the same level the same fees that we started off in 2010 we haven't increased the fees for this and of course all of us know that the cost of doing business has increased substantially since 2010 so although that we have we are able to put money back every year back into our fund balance so we can can you continue to do projects it becomes smaller and smaller and smaller and smaller every year to the point that we're eventually going to get to the point that we're not gonna have enough money for O&M much less capital projects to take care of water quality improvement issues so we will be bringing those bringing that to you as well but we need to from from the regulatory standpoint we're going to need to bring the our permit the changes in our permit we're going to need to bring to you and some also some ordinance changes as we move forward to bring those to you as well to in the near future we have to have our new permit by December so we bring in those to you in the future we'll get through those and and we'll start making those changes and the ordinance changes but but something that we need to start talking about since council made this part of the number one priority is storm drainage storm flooding issue storm drainage issues from a quantity standpoint and so we will start putting where we've already started working on different thoughts and ideas about what we what projects we would like to start being able to tackle now some of the issues we're trying to we're trying to work them into some of the street reconstruction that we're doing Bell Street at East Angelo draw looking at College Hills right now as to what we can do and that we're just in the initial design phases of College Hills but the flooding issues we have in Long College Hills in their royal are those things that we can manage within the reconstruction of College Hills Boulevard in the street designer those things that we can work in work into those designs and be able to do that and be able to fund those

[1:10:25] improvements through the reconstruction process so we are looking at some of those but we have so many other ones that are out there that are they're just kind of caused so much money where oh one of those foster road you know and of course we're working on a temporary solution right now it's not a permanent solution it's not gonna and the solution that we're providing right now is not gonna if we get one of six or seven inch rains it's not gonna it's not gonna handle even one of those so but we have those the Avenue P projects we have and of course the e stands low draw that we're gonna fix up with Belle Street you know we when we have it we do have a drainage study from 2000 that was conducted and we need to update that the city's grown substantially since 2000 but not only do we have the College Hills flooding issue we have so Ross flooding issues gosh you name it all over town we have it going in you know in backyards and running through side yards and garages and ready roya trail add to the flooding issues on College Hills know the red were the the retro trail didn't we didn't increase any water uh it was actually based on federal regulations they it had to be a and whatever we did down there had to be neutral we couldn't add to or take away so it was it was basically a neutral project so we didn't increase or decrease flooding issues but we do have all those issues and we're coming up with ideas and thinking through things as to what we can do to try to fund some of these major quantity issues that we're having so you said that storm water fund is about quality not quantity and so now you're talking quantity we do need to address quantity that's that you know it's now priority you know within within councils directives so we're starting to look at those issues and and what again what we need to do to find the funding necessary to address those issues do you have a quote here yes just for perspective

[1:12:29] those bird in here your found mayor's [Laughter] got a mouse in his pocket those storm water quantity issues are every bit or more so expensive as the water treatment plant we talked about and so now you the council has identified that as a priority and so we're in that part of the cycle where they're identifying how big this scope should be and they'll be talking in the future about how to address something you've identified as a priority but it's early enough in the process that that part is not budgeted here because we're going to get a sense for how big that balloon is and whether whether or not how much of it council has an appetite to fund okay do I have further questions for sham yes good I'm saying the longer you talk the more questions pop up in my mind but can you share with me what the what is involved in the permitting and why it's so expensive number one and then when I was driving home from church I was traveling on Van Buren between Houston Hart and Pecos Street and I mean water was just you know there was a car style there is that due to inadequate stormwater drainage where we start flowing over streets and we start flooding different issues those are those are drainage issues either one inadequate drainage or in unfortunately you know in West Texas our rain our rains are so in freak that our drainage system is our streets for the most part we know we have some underground drainage in in downtown but that's really it and a few other places

[1:14:32] around town but for the most part our underground drainage is is downtown and the rest of the drainage is handled by our street systems and that's what they're designed to do in West Texas so unfortunately that's but and that is but that goes back to the drainage issues and us dealing with drainage issues from the permitting standpoint the permit is is based on federal regulations in our state permit the state has to file a permit with the with the federal government as well - and then we base our permit off of the state guidelines and state regulations that they set forth and we have a base we have a base list of things that we told the state that we would do to ensure that we are cleaning up the water before it reaches our our our River and to the to the river basin into the lakes and so we have this base list and of course the expectation from the state is is that it's it's ever-increasing I mean it's fine to start off with these functions but you need to make sure that you're always doing more a little bit more a little bit more so as we move forward and federal and state and regulations and requirements change from every time we get a new permit there's always new new additional things that they want us to do and look at so that's one of the reasons that it's so expensive for us to to implement this program and to maintain it because education goes anywhere from education to street-sweeping to drain cleaning and drain maintenance and and cleaning the river putting the boats in the river and cleaning the flow doubles out of the river and the debris out of the river and and along with all of the weather at sunset lake or Van Buren ponds or all those areas that are areas that you know have to be maintained and

[1:16:34] cleaned and addressed to make sure that we're keeping the quality of water going into our system when it rains the the low water crossing on south on Irving always is like you cannot even believe how bad it is so do we when that happens did we clean all that debris out or we just let it flow through at its own pace a lot of times right there especially at Irving you it will not it will not flow through so we do send crews down there and we start slowly debris removal as we can of course our first the first thing that we do after a rain event a significant rain event is our crews go around to all of this drains that we have along the streets and in different places and make sure that those drains are cleaned and and open and flowing so we don't create further flooding issues and/or drainage issues that would cause more erosion in certain areas and so those are that's what we do and then from there we go down to the river and we start making sure that we're getting the debris out of the river and so so this budget allows for the expense of the renewal of the stormwater fund and is there one item that you think is going to be new and address and expected out of this new permit that is included in this budget we're gonna minor changes in this permit mod we were lucky as we're moving over as we believe that the city is moving over that hundred thousand mark and when we're looking at possibly having to expand and go into the next tier level of the permit of the permitting process luckily they're going to base it off of the census and not actually the existing census that we have and not our projected census so not the 2020 so not so not the 2020 census so it's actually buying us a little time from major changes there'll be some minor modifications but will easily be able to to hopefully take care of those in the existing budget

[1:18:37] that we have now - inflation costs but we're not seeing any drastic changes right now but we do believe that as we go into the 2022 permit that will hurt 2023 per minute as we start going into that time frame that there will be some increased costs and increased responsibilities due to increasing into that next year so the water that comes from the conchos that starts out somewhere in the county but it's not on city property but comes into the city is our responsibility so what is the county's responsibility for stormwater fund and cleanup before it gets to the city the county and Tom Green County and the state of Texas Angelo state a lot of these entities have their own ms4 permit they had they're required to file their own per minute and to maintain their water based on their plan and their best management practices that they have submitted to the state so if we have a particular area in the county that has Sloane a lot of trash into the city and we work with them to say hey it looks like there's a real problem on the north concho or yes if we're seeing if we see a specific issue in any one location we try to identify it and figure out what the what the root cause of it is and then try to go address that whether that's what the county or any other state entity as well - do I have further questions from Council Shane thank you very much appreciate it good job no we had such an interest in stormwater okay we're gonna go to the airport fund good morning Council good morning you're too tall for that can you move that microphone up so you don't have to bend over so the major source of revenue of

[1:20:41] course in the airport fund is Lisa's followed closely by concessions we do project a slight increase there we have other revenue that includes auction proceeds and reimburse expenses increases there as well and then of course that slight increase to the OEM expenditure budget and that's mostly due to the way we're accounting for our property and casualty insurance our accounting or finance department worked with HR this year to more appropriately allocate the property and casualty insurance costs based on the actual asset that is owned by each fund and so we're seeing some changes between all the funds because of that I'm gonna start off with a question because I've gotten numerous phone calls and I talked to Michael Dane about this yesterday and that's our short-term parking out there obviously it's free and I understand that when you have free parking you have a greater ability to apply for grants and once you charge for parking and I'm not suggesting we charge for parking so make sure everybody understands that I'm not suggesting we charge for parking however how do we control short-term parking versus long-term parking because this past week I've got so many complaints because from what I understand there is we have these casino flights okay and all of a sudden the short-term parking was overflowing and people who might want to go eat at the Chinese restaurant had to park in long-term parking and so and I can't remember that there's a sign that says short-term parking is for 48 hours or under it just says short-term parking and in long terms over there so how do we control and manage what is short term versus long term because people were very angry last week at the parking situation at the airport yes mayor will look into that I'm primarily rely on our airport police to take a look at the short term Lots and then just based on that as needed you can take it any vehicles as needed in short term or long term depending on how long they're parked in that lot but primarily rely on

[1:22:45] our police officer and when I returned the airport will review that and take a look at it just looking at the short term law right now we did have a casino Charter this week and it was a smaller aircraft um I didn't notice an overflowing parking but we'll look into it and try to resolve that issue they do give tickets mayor they give you a ticket if you're there longer than you're supposed to be and what is that supposed to be timeframe you're correct short term lot 48 hours and I believe there's an ordinance for the long term lot I don't know the exact number off the top of my head but it's a longer period of time and we have had to take it vehicles and tow them away as needed if they park beyond that so long term I've never seen it overflow but I know short term is an issue and particularly and I bring it up because of the leases and the concessions that we have out there so if you're you know if you lease as they do that Chinese restaurant does we need them to be successful just as we do the other concessions there so we don't want to make it overly difficult for someone to go dine there even if they're not flying so parking becomes a short-term issue in order to make our leases and concessionaires successful agreed now you can do your presentation thank you thank you all Jamie well it's as you can see just a relatively stable budget compared to last year slight increase $80,000 I think the biggest changes you'll you'll see or do to rates and charges increase we had a council approve rates and charges increase in December so slight increase to fees twitter the FBOs a little bit of increase in fuel flow each fee additionally as you mentioned the casino charters we typically have around two of those a month so we established a fee

[1:24:47] for those did some benchmarking on other airports that handle those flights so we're able to capital or capitalize a little bit of revenue from that this is based off of increase landing fees which is because we're counting on five landings versus four from last year right we're relying on well right now actually we we have four scheduled flights forceps additionally you get landing fees for scheduled cargo flights as well so FedEx and then also the Charter ups flight do I have questions from Council just resolve the parking issue work on that Thank You Billy we're gonna get worried if you get a ticket for a long term parking I had a good excuse I was running late to catch my plane so I just thought and I got caught always get caught I will say this Billy you're the second person up here that's been caught doing that long term are we concerned that some I might park out there for two weeks is that the issue it's always parking out there so yeah I do abide by the rules Thank You Billy she's corrected we're way okay we appreciate your contributions Ellie yeah okay so we're gonna move into the Civic do we need to take a break before we move into civic events or do you want to just move forward everybody's good okay so let's go into civic events tax revenue and they received 48 percent allocation from that revenue source so they are currently budgeting 1 1 million

[1:26:52] $76,000 for hotel occupancy tax tax revenue into the Civic events fund they also have other revenue that comes from concessions and rental fees and things like that at our other venues and you'll see a slight increase to their capital expenditure budget I believe that's mostly due to the excess revenue that they're seeing that they're able to maybe take on some projects next year may I ask a question before we get started I know that several years ago the hot tax money we instead of for example on the CVB at the chamber we limited them to X the dollar amount not a percentage and so the question mark is why don't we have a budget here not just a percentage allocation that's per council decision and direction from win way back when we went through that I think we need to read discuss that thank you because I think there has to be just as we do with them a dollar budget control of that dollar budget then excess funds need to come back to Council as a priori interpret priorities in terms of how we want to spend that money I agree with that go forward please Carl yes we see an increase in thankfully doing hotel occupancy tax due to increases in that do see reduction in revenue in in rentals and we do have explanations for each for instance that the at the convention center were seeing a loss of some events that have moved over to the auditorium sits the auditorium has opened the the symphony some smaller performances at the Coliseum we lost sabha sign Angela Broadway Academy and that was a significant loss of revenue about $20,000 and also at the river stage we did lose a couple of bookends to the auditorium and we have seen some concert shift from profit to non profit which is a reduction in the facility use

[1:28:55] fee now since we developed this budget a few months ago we have seen an increase in bookings about ten new bookings they're not confirmed yet some are still under negotiation but we have confidence now that we could actually increase this anticipated revenue that we budgeted here yes I would think that with the symphony moving over which we knew what happened as well as san angelo broadway academy that that also opens up dates which means a greater opportunity to rent it because before they were there you couldn't rent it out so my assumption is greater availability it was greater availability greater opportunity to lease that's correct and like I said we've seen ten new request for bookings at the river states and the Coliseum so we have confidence that we could actually exceed this weight okay so in the capital expenditures as planned here one hundred and fifty one thousand is what morning good morning oh if he like he like he has has said that we do have a lot of events that are planned I'm coming up for the next next season we do have about 10 events there the bookings are picking up this is about the time most of the events that we have or like you say there's a decrease with the facility fees if you have if you're a non-profit is only 50 cents if it's a for-profit we do collect the dollar 50 so whenever we do have an event you're looking at three times if it's a non-profit like past event we had this past weekend facility fees we only collected 2300 when we possibly could have collected 7,000 if it was a for-profit event so it does make a big difference for us with our budget whenever we look at what we do look at the events she was asking specifically

[1:30:59] what is the 151 thousand dollars in your budget under capital what what are you doing with that what the hundred and fifty one thousand that we do have that's for the capital improvements so we do have the projects that are still coming up of finishing off the roofing for the for the Coliseum and that's that's a good amount of that that's a good chunk of that capital improvements 100 go ahead yes and then also the a/c units here too as well but honestly it is a lot more for just a roofing for the for the Coliseum okay so right now I think in the last month we were 71 percent capacity our hotels and demand was 71 percent so you have a 20 percent increase planned so in terms of hot tax money so if there's a where are a 71 percent which basically means hotel rooms are booked Thursday Friday Saturday so that means the way you get conditioned additional growth is going to be Sunday Monday Tuesday not because on weekends I assume we're pre often hon percent booked on hotels no just asking cuz we planned that 20% up on revenue on the hot tax money so I'm just asking go ahead Tina based on current year trends we expect the end of the year for a hotel occupancy tax revenue at about just over 2.5 million dollars and we budgeted 2 million 270 for the fiscal year 19 so we're still short of what we've actually seen for the current fiscal year we have further questions from Council yes Carl this money and this one much like Billy says sometimes I know we're looking at some things that may come down the pipeline that may affect the occupancy of our hotels by federal employees do we get

[1:33:04] hotel tax on that I mean I was thinking okay so there's a big risk if things happen at Goodfellow and booking up a lot of these rooms that number could have a huge fluctuation but you'll see it Plus and sales tax and in the local economy I mean we we do see that one on the horizon that is a potential risk we have a potential event that could impact I would say another one sitting with the concerts and the success that we've seen in those concerts I know we've got multiple phone calls people wanting to book in those I would say when you negotiate those concessions you know please keep those in your favor and that's that's a lot of potential revenue for us with that is the revenue from concessions in the Civic events fund yes and so where's that on this presentation is that in the other so we've planned that down from 2017-18 one moment increase a bit so the other line for concessions we're budgeting seventy six thousand dollars for current for fiscal year nineteen and it looks increased our budget and FY 18 was sixty thousand so slight increase of sixteen sixteen thousand increase in concessions we've still got a yes we have one thing that's not so much an annual operating issue but one of the

[1:35:08] things that Rick started talking to us about the last time hotel tax went sky-high he said we need to be planning now for when that hotel tax dips and he said we need to be looking at our facilities not just on a year-to-year basis we need to be thinking a longer term and as painful as it is to say Rick was probably right we do need to be thinking longer-term about facilities it's been many years since the renovation of this facility and with occupancy tax up we may want to dedicate a piece of that Rev that excess revenue and and study a little bit where st. Angelo could or should be for either facility improvements or expansion or renovation just just so we have an idea and we aren't surprised by a hundred million dollar water plant or whatever in our future I want to make sure that we limit we develop a budget for civic events and if hotel tax increases that we bring those extra dollars back to Council for approval that's what we need to do and I agree when we get into that what happened last time is typically they they allocated a budget to the other entities which those included their maintenance all that kind of stuff ours basically became an operating fund and so that's why you see them coming back to council asking for these capital improvements because there really are a lot of capital dollars built into their budget and so I totally agree and we should be looking at those capital dollars the other thing we talked about is as Mike touched on is what do we do when oil is not filling the hotel's you know this convention center is a prime example it serves locally very well but we have a difficult time attracting entities because we have no exhibit hall basically that'll accommodate so looking at that long range future and and how can we that's why I want to create a

[1:37:12] budget for civic events and X additional income from hot tax money should be looked at in terms of short-term and long-term needs controlled by counsel yes Harry Rick you and I have talked a little bit with the success that SIDS had in booking over the last 18 months two years that we should take a little bit of that particular money and set it aside for improvements in in these facilities the river stage for example is a really good opportunity there because we've had a lot of success there so as we have that success we take some of those dollars back in we should set some of those dollars society also for improvements now they may not be great dollars to start with but I think success breeds success and I think as long as we continue to do that we'll bring those dollars and and and do what we need to do and it may pay for an air conditioner that item back as a discussion item as the mayor's kind of indicated as well what we've been doing in the past is because those dollars aren't built into their budget as you see we came back to y'all twice now with a plan of here's what we would like to do we'd like to fix the roof we'd like to and then you did a budget amendment and allowed them to spend those dollars if we want to work at putting some of those literally into the budget we can discuss that at that time as well we'll bring it back as a discussion item and and let let us work it that way all right Karl you want to continue another slide there that shows how our hotel occupancy tax is currently allocated just for your information and that's why because these are limited to a specific dollar amount and that's the way we need to have civic events fund as a specific dollar everything except civic events and Sakic the financial level San Angel Cultural Affairs Council so with that said then if we're gonna do that to civic events

[1:39:18] you're saying that we need to do that with San Angelo Cultural Affairs Council as well limit to a dollar amount and not 5% of the total I serve at your direction and that would help our civic events Department because what we did with the other entities that way they know what they're getting it's my point and and they can budget accordingly so they could know it costs this is what and if and if it's a year when the the hot tax doesn't perform then you dip into the the fund balance to give them that set budget budgets not percentages okay dick slide ready to move on to Fort Concho yes ma'am I think so I think questions were answered so the main source of revenue for Fort Concho is of course rent and then mainly through the state office building they also do have some program income and the increase to onm there is mostly again due to that increase for the property casualty insurance based on the assets that they hold within that fund rinse and donations what percent of it is the state office building third third of the six hundred forty four thousand is the state office rent includes the fort does its own rentals to its facilities part of that I'm asking what percent is the state rent as a percent of the six hundred forty four thousand three hundred and five thousand of that current revenue budget is from the state well from the state office building fund yes there's a million dollars in rents paid by the state to the state office building fund that's I think the next next slide so okay so we'll do that next okay and so then the balance of the if

[1:41:21] you take the three hundred and five thousand out of that so there's three hundred and thirty nine thousand dollars of rent where what does that rent made up of the other rentals that multiple multiple events like the stables the stables the commissary the quartermaster oqa so then what is other programs like events Christmas old Fort Concho the other events that we host admission charges other I think is mostly the transferring from the general fund that helps support the fort so it's a transfer it's not actual funds for rentals etc etc now 420 of that five hundred thousand four other is transferring from the general fund okay so it's all the rentals Christmas at Old Fort Concho etc is all in written donations do I have questions or comments that counsel would like to offer with no questions or comments thank you I will close the conversation on Fort Concho fund and we move to the state office building fund let me go back so on I'm sorry on the pillars that are so weathered and exposed and in great need of repair what's the program for getting that done in the short term we've been tackling as best we can with different programs with AmeriCorps crews with our own crews and our own resources we are looking long-term I'm like talking immediate because those pillars are in horrible shape immediate immediate long-term plan to package these together and with some funds that may become available in the near future and contract that work out so we get to get it done quick in thoroughly and that's tighted with so let's combine that conversation go on to

[1:43:30] state office building fund then we'll go back to that question okay so for the state office building of course that main source of revenue is the the rental income from the state there's a slight increase there that's based on the contract stipulations that are in place and that's really the only changes there we are seeing some of our debt service I think one of our debt service issues has paid off and we expect the other to pay off in 2023 I believe and so as that money becomes available for other projects our director of the Fort Concho Bob Bluth Hart has a plan to use that money to fund some of the projects that you are speaking to mayor the contract has a slight increase is it a triple net contract or not so the slight increase in rent does it take care of the roof issues and all those other issues so it's not a triple net its operational cost not capital cost the increase I'm just asking if the contract says that the city must maintain the building's roof does what percent increases in the lease on an annual basis or is it on annual or it's it's per square footage the square footage hasn't changed so what would be the increased rates two percent yeah it's very conservative the negotiation that happened way back was it's a very small increase when does that contract and so that we can renegotiate the terms a couple years yes I mean soon I have already started working on that contract for renegotiation and I believe the right it is I think 2 percent that's what the annual is right now so it's coming up soon enough that you're working on it great okay so does counsel have questions or comments on the state office building fund

[1:45:32] did I hear you say 20 20 or 20 23 Beethoven Ischl ones paid off what's the difference between the one that's paid off in the 2023 contract I mean why is one and there's one four years out two contracts the first one had to do with the initial acquisition and renovation of the facility I believe the second one had to do with the facility across the street and workforce development building okay Workforce Development Office what's the rent over there if we have rent on the state office building it's part of its packaged with this package together under this budget okay that contract is win over when you're not working on so it's not eminent any other questions from Council no other questions from Council we'll move on to the Development Corporation funds and now does anybody want to take a break no I'm fine I just don't want anybody to blame me all right we'll do that anyway mayor all right so we're gonna move on to I assume guy Andrews you're going to do the presentation for the Development Corporation mayor of course our primary source of revenue and the Development Corporation is our sales tax being that it's a type B sales tax corporation 72 percent of the expenditures there go are

[1:47:37] earmarked for ballot projects and 28 percent is allocated for economic development initiative the staff has proposed the sales tax revenue in the development corporation an amount that correlates to what we are budgeting for sales tax revenue and the general fund currently well what percent is that right now we're budgeting is about a five percent increase so our current year budget is seventeen million or proposing a seventeen point eight five seventeen seven fifty I'm concerned about a five percent increase your projections say that we'll end the year at eighteen point four million dollars for the current year you're planning an increase on top of that no ma'am bill I thought you just said we're planning an increase from our original budget which was seventeen million dollars but we're projecting to end the year eighteen point four million dollars so I feel like seventeen point seven five is pretty conservative even with that because I thought you said that the increase for this fund was the same as the increase for the city of San Angelo general fund sales tax increase was the same percentage-wise I know difference in Burbage is I'm speaking of our current year budget rather than current year actuals when I say that we'll project an increase so we're projecting an increase over the current year budget not over the current year actuals okay I want to know over projected actuals because that's what the plans are based off of we're projecting well below projected actuals so seventeen point seven five million dollar budget and our projected actuals are eighteen point four million dollars so we're still $550,000 short of what we're actually seeing in the current year mayor that's a that's less than a three percent increase over current budget but we had some huge increases last year because of the storm etc so what I want to do is make sure we plan very conservatively because to have increases on top of the large increases

[1:49:40] that we've had will be very difficult so I want to make sure we're not planning to aggressively the sales tax Mary we're not we're looking at the current what we're anticipating this coming year and for next year we're budgeting below that we're actually if we look at this amount this year we call that flat we're actually not budgeting flat make sure we're budgeting below a bad amount that we anticipated will receive this year so we are being really conservative on the way that we're projecting that okay with that question then on the 2017-18 well I can go to my book here so I'll do that so the question mark before I get to that page is where are you projecting the budget for type B sales tax or the actuals for 2017-18 because this budget was 7 million 850 what do we project we're going to know if the city's projecting to in the year at eighteen point four million dollars we would project the Development Corporation to end the year at nine point two million dollars so this is planned at eight point nine million so you're planning at three hundred thousand dollars down from what it was projected actual primarily and the other is planned down and that is why I believe I believe that's due to we used to transfer in from no that's on it hold on let me look let me look at my Mara let me let me get back to you on that one if you want to move on oh look I know one point last year there was an issue about two million dollars in terms of it hadn't been charged to the whoops to the Development Corporation there was some confusion over that are we making sure that we've got that process clean yes that there was a bond refunding that was not being expensed out to the Development Corporation it's in this

[1:51:42] current year budget and it has been accounted for I would you like to speak since you're standing there and we're not allowing you to even say hello so hello welcome and I did come in at a later time where a lot of this had already been allocated at that sort of thing in and so going with my statement that I made coming in I wouldn't try to make changes until I had more experience and looking at this so some of this I relied on previous conversations to air like Tommy's treatment of you of a few minutes ago while most of this work was done before guy got here we won't hesitate to blame him if any of it goes with why we're glad he's standing up there for the darts okay basically what I've looked at is how much money am I gonna get to spend on new projects this year and to take care of the needs that for infrastructure and and projects that that are out there on the radar like the airport development and things like that that nature and yeah broadband is definitely one so let me let me ask him a question I had the good fortune of serving on the on the Development Corporation board a couple of times one of the one of the things I think we may have gotten right was we started setting aside money specifically to incentivize the qualifying Naik's codes for local existing businesses SBA I think says a Small Business Administration says 50 to 75% of your new jobs are created by your existing business community that that being said again I think one of the things the Development Corporation has done right and well over the last several years is help local existing business I assume that is still in this

[1:53:48] budget to help create jobs purchase equipment buy them into whatever you all deem is appropriate for a an existing business to help them grow their business as a matter of fact it's one of the larger budget items that we've budgeted for under the business retention expansion program we have four special projects under their allocated six hundred and fifty thousand dollars so and they are rightly always talks about economic development in one of our greatest opportunities I think in economic development is our existing business climate so you know I again I encourage you to to keep up that good work because I think I think that has been successful so there's no doubt we love to celebrate a win when we get a new business coming to town but anyway I think the greatest investment as you speak to Atami is the fact that we need to use this fund to create a strong foundation infrastructure wise to make sure that we're the right community for businesses to move to and one of that is broadband it's a huge issue it's an expensive issue but it's one that if we really want to look at opportunities for example needs of existing businesses timeclock plus has has said over and over again we got a problem and we need to make sure that we invest in things that will help the community at large broadband Airport development looking at the rail things that add strong infrastructure that would benefit multiple businesses not just a single business but multiple businesses right band is important okay do I have further questions from Council or comments Billy I just have a couple of questions under the expenditures there is a line item that speaks to city services and we have an original budget of four hundred and

[1:55:50] thirty three thousand what are the city services that would be direct expenses for the salaries for those people who are employed I can't hear that would be direct expenses for those salaries that are charged for the staff at the Development Corporation as well as another amount that is due to indirect the indirect cost plan that we put into place for the services that the city provides such as city management finance HR all of those admin type services that are provided to the Development Corporation are paid through that contract okay and then my other question under the expenditure of ballot projects would those be included under projects here in my blue book yes cuz I'm of those were projects yeah project some of them we issued debt for those projects and then some of them we cash flowed currently I think the only ballot projects that we have left that are ongoing are for affordable housing and for the West Texas water partnership we do have projects though that are still budgeted that are still being completed but as far as still ongoing projects on that side those would be the two that remain the ones that you say we still have are that we're still funding are they ballot projects yes okay can I get a list of those and yes some specific some details on what we have that are active at this point I can address part of that we in terms of debt issues we still have about 5.3 million dollars and debt issues it we also have affordable housing that's allocated every year also our West Texas water partnership about two hundred thousand in that and those are the main ones that were still paying for under

[1:57:53] the ballot issues which is about as the largest portion of the budget is 78 percent of the budget goes to those issues and there's a percentage that has to go to water too right brother 72 percent right that's covered under the ballots I'd heard about yeah any further questions for counts from Council for guy mayor be a follow up on that question about why the decrease in revenue that was due to the fact that sure we had budgeted amount of $250,000 for sale of fixed assets at the industrial park we have not seen any of those receipts in the current year so we recommended not budgeting for that revenue until we actually see it and in the event that we did not so that's offset slightly by an increase in our interest investments that would be future sell of land at the industrial park yes what percentage of the industrial park property has been sold I don't know for sure number I'd be curious on what percent and there's a phase 1 phase 2 and phase 3 well I want to know what the percentage - the total is and then I want to know what percentage phase 1 is and phase 2 get you that information all right thank you guy with that did you pull this information for us Tina yes ma'am thank you so much this is exactly what I'd like to have I guess I wasn't paying too much attention when I voted in 2010 thank you so much this sheet we got in some packet because it's a part of our financial statements for the Development Corporation every month look at that last night so I know we had it ok with that we now will officially adjourn this budget meeting at 10:30 4:00 a.m. on

[1:59:58] August the 14th we're adjourned

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