City Council

CITY COUNCIL Monday, August 12, 2024 BLIFE Activity Room Special Session 6:00 PM FIRST FLOOR OF CITY HALL 7008 S. RICE AVENUE BELLAIRE, TX 77401 Agenda Mayor Gus E. Pappas Mayor Pro Tem Council Member Council Member Winfred C. Frazier Catherine Lewis Ross Gordon Council Member Council Member Council Member Cindy Cohen Taylor Brian Witt Jackie Georgiou City of Bellaire Texas Page 1 of 18 Agenda City Council August 12, 2024 SPECIAL SESSION (BUDGET WORKSHOP) - 6:00 P.M. A. Call to Order and Announcement of a Quorum - Gus E. Pappas, Mayor. B. Budget Discussion: Workshop regarding the proposed FY 2025 Budget for the City of Bellaire, Texas - Requested by Sharon Citino, City Manager. Agenda Statement Report - Pdf C. Adjourn. City of Bellaire Texas Page 2 of 18 AGENDA STATEMENT City of Bellaire MEETING: City Council - Aug 12 2024 PREPARED BY: Todd Gross DEPARTMENT: Finance ITEM TITLE: Workshop regarding the proposed FY 2025 Budget for the City of Bellaire, Texas - Requested by Sharon Citino, City Manager. RECOMMENDATION: Sharon Citino, City Manager, recommends that City Council conduct the workshop. BACKGROUND/SUMMARY: The City Manager and Chief Financial Officer will lead a discussion and respond to City Council questions regarding the proposed FY 2025 Budget. PREVIOUS COUNCIL ACTION: On July 15, 2024, staff presented the proposed FY 2025 Budget to City Council, and City Council called a public hearing on the proposed FY 2025 Budget to take place on August 5, 2024. CITY ATTORNEY REVIEW: ☐ Yes ☑ No Page 3 of 18  Page 2 of 16 Workshop: Proposed FY 2025 Budget Sharon Citino, City Manager Terrence Beaman, Chief Financial Officer August 12, 2024 Page 4 of 18 1  Agenda: Page 3 of 16 1. VAR Budget – Necessary Adjustments 2. VAR Budget – Recommended Adjustments 3. Supplemental Requests (Recurring) 4. Supplemental Requests (Nonrecurring) 5. Rate Options Page 5 of 18 PROPOSED FY 2025 BUDGET 2  VAR Budget – Necessary Adjustments: Page 4 of 16 $120,000 Reduced property tax revenue with updated VAR (from 0.4355 to 0.4333) $ 60,000 Reduced fire inspection permit revenue $180,000 Total reduced revenue Page 6 of 18 PROPOSED FY 2025 BUDGET 3  VAR Budget – Recommended Adjustments: Page 5 of 16 $175,000 Increase municipal courts fines revenues $172,000 Remove 8.5% health care cost increase $ 70,000 Decrease Fire Department overtime costs $ 51,900 Decrease discretionary training costs $ 35,000 Decrease Police Department overtime costs $ 23,000 Remove streets maintenance costs (move to METRO fund) $ 18,000 Decrease software costs for payroll, performance evaluation, applicant tracking $ 10,500 Remove strategic planning facilitator costs $555,400 Total increased revenue and reduced expenditures Page 7 of 18 PROPOSED FY 2025 BUDGET 4  VAR Budget – Additional Funding Capacity: Page 6 of 16 ($180,000) Reduced revenue (necessary adjustments) $555,400 Increased revenue and reduced expenditures (recommended adjustments) $375,400 Total additional funding capacity in VAR budget Page 8 of 18 PROPOSED FY 2025 BUDGET 5  Supplemental Requests (Recurring): $318,000 3 Police Officers Page 7 of 16 $ 10,800 Gear for 3 Police Officers $ 23,000 Local grant match for Crime Victim Specialist $ 70,000 1 Fire Marshal (net of $60K of revenues position will generate) $ 86,000 1 Deputy City Clerk $ 58,000 1 Risk Manager, Safety, Training Specialist (net of $15K existing PT) $ 36,000 Public Works work order system $ 25,000 Economic development consultant $ 17,000 Contract management software $ 4,000 Online learning – Library (Brainfuse, Transparent Language) $ 0 CAD Utility integrations $ 0 Employee evaluation and applicant tracking software $647,800 Total recurring costs Page 9 of 18 PROPOSED FY 2025 BUDGET 6  Supplemental Requests (Recurring) - PD: $318,000 3 Police Officers Page 8 of 16 $ 10,800 Gear for 3 Police Officers $ 23,000 Local grant match for Crime Victim Specialist $351,800 Total recurring costs Page 10 of 18 PROPOSED FY 2025 BUDGET 7  VAR Budget – Additional Funding Capacity After Funding Supplemental Requests Page 9 of 16 (Recurring) - PD: $375,400 Additional funding capacity ($351,800) 3 Police Officers, gear for 3 Police Officers, Crime Victim Specialist local match $ 23,600 Total remaining additional funding capacity in VAR budget Page 11 of 18 PROPOSED FY 2025 BUDGET 8  Supplemental Requests (Recurring) - Other: $318,000 3 Police Officers (included in VAR budget) Page 10 of 16 $ 10,800 Gear for 3 Police Officers (included in VAR budget) $ 23,000 Local grant match for Crime Victim Specialist (included in VAR budget) $ 70,000 1 Fire Marshal (net of $60K of revenues position will generate) $ 86,000 1 Deputy City Clerk $ 58,000 1 Risk Manager, Safety, Training Specialist (net of $15K existing PT) $ 36,000 Public Works work order system $ 25,000 Economic development consultant $ 17,000 Contract management software $ 4,000 Online learning – Library (Brainfuse, Transparent Language) $ 0 CAD Utility integrations $ 0 Employee evaluation and applicant tracking software Page 12 of 18 $296,000 Total recurring costs PROPOSED FY 2025 BUDGET 9  Supplemental Requests (Nonrecurring): $100,000 Zoning code revision consultant Page 11 of 16 $ 98,000 Public Works work order system $ 88,250 Patrol car $ 25,000 Economic development consultant $ 15,000 Employment policies revision consultant $326,250 Total nonrecurring costs Page 13 of 18 PROPOSED FY 2025 BUDGET 10  Rate Options (Presented July 15): Page 12 of 16 Contingencies Supplementals Supplementals Transfers Transfers Transfers VAR Budget VAR Budget VAR Budget VAR Budget Tax Rate 0.4355 0.4474 0.4591 0.4766 General Fund Tax Revenue $17,471,000 $18,250,000 $18,919,100 $19,821,000 Debt Service Fund Tax Revenue $ 7,400,000 $ 7,400,000 $ 7,400,000 $ 7,400,000 Total Tax Revenue $24,871,000 $25,551,000 $26,221,000 $27,221,000 Increase in Tax Revenue -- $ 680,000 $ 670,000 $ 1,000,000 Page 14 of 18 PROPOSED FY 2025 BUDGET 11  Rate Options (Updated August 12): Page 13 of 16 Contingencies Supplementals Supplementals Transfers Transfers Transfers VAR Budget VAR Budget VAR Budget VAR Budget Tax Rate 0.4333 0.4371 0.4482 0.4657 General Fund Tax Revenue $17,351,000 $17,568,000 $18,202,500 $19,202,500 Debt Service Fund Tax Revenue $ 7,425,000 $ 7,425,000 $ 7,425,000 $ 7,425,000 Total Tax Revenue $24,776,000 $24,993,000 $25,627,500 $26,627,500 Increase in Tax Revenue -- $ 217,000 $ 634,500 $ 1,000,000 Page 15 of 18 PROPOSED FY 2025 BUDGET 12  Rate Options – Impact: Page 14 of 16 Additional tax burden (difference between 0.4333 and 0.4657): $500,000 $1,093,671 $1,500,000 $3,000,000 Under 65 $ 130 $ 283 $ 389 $ 778 65+ $ 86 $ 240 $ 345 $ 734 Page 16 of 18 PROPOSED FY 2025 BUDGET 13  Rate Options – Impact: Page 15 of 16 0.4333 0.4657 Page 17 of 18 PROPOSED FY 2025 BUDGET 14  Page 16 of 16 Discussion FY2025Budget@bellairetx.gov https://bellairetx.gov/FY2025Budget Page 18 of 18 15