City Council

Belton City Council Meeting June 13, 2017 - 5:30 P.M. The Belton City Council met in regular session in the Wright Room at the Harris Community Center with the following members present: Mayor Marion Grayson, and Councilmembers David K. Leigh , Paul Sanderford, Dan Kirkley, Guy O'Banion and John Holmes. Mayor Pro Tern Craig Pearson was absent. Staff present included Sam Listi , John Messer, Gene Ellis, Amy Casey, Brandon Bozon, Bruce Pritchard , Chris Brown, Angellia Points, Judy Garrett, Matt Bates, Charlotte Walker, Paul Romer, Cynthia Hernandez and Kim Kroll. The Pledge of Allegiance to the U.S. Flag was led by Director of Parks and Recreation Matt Bates, the Pledge of Allegiance to the Texas Flag was led by Councilmember John Holmes, and the Invocation was given by Andy Davis, Senior Pastor of First Baptist Church of Belton. 1. Call to order. Mayor Marion Grayson called the meeting to order at 5:30 p.m . 2. Public Comments. City Manager Sam Listi explained the requirements of the Certified Public Manager Program , a two-year certification course. He congratulated Assistant City Manager/Chief of Police Gene Ellis who recently graduated from the program . Consent Agenda Items 3-5 under this section are considered to be routine by the City Council and may be enacted by one motion. If discussion is desired by the Council, any item may be removed from the Consent Agenda prior to voting, at the request of any Councilmember, and it will be considered separately. 3. Consider the minutes of the May 23, 2017, City Council Meeting. 4. Consider appointments to the following Boards/Commissions: Planning and Zoning Commission - Reappoint Jason Morgan and Dave Covington ; appoint David Jarratt to replace Frank Minosky and appoint David Fuller to replace Mat Naegle whose terms have expired . Zoning Board of Adjustment - Appoint Mat Naegle to fill unexpired term of David Jarratt, and move Michael Stock from alternate position to fill unexpired term of David Fuller. Appoint Michael Pressley to fill the unexpired alternate term of Michael Stock. Parks Board - Reappoint Diane Ring and Jason Wolfe. Appoint Ted Smith to replace T.R. Mclaughlin whose term has expired. Library Board - Appoint Lynora Arguello to fill the unexpired term of Luis Saveedra who recently moved out of the Belton city limits. Belton City Council Meeting June 13, 2017 - Page 2 5. Consider a resolution nominating the City's candidate for election to the Board of Directors of the Central Texas Water Supply Corporation. Jeremy Allamon, Assistant Director of Public Works, was appointed to replace Byron Sinclair on the Central Texas Water Supply Corporation's Board of Directors. Upon a motion by Councilmember David K. Leigh and a second by Councilmember Dan Kirkley, the Consent Agenda items were unanimously approved upon a vote of 6-0. Strategic Plan 6. Review current Priority 1 Goals in the FY2017 Strategic Plan and identify other priority needs. City Manager Sam Listi reviewed progress on the Strategic Plan goals that were defined as Priority 1 In the FY2017 Strategic Plan (see Exhibit "A"). He said that maintaining an updated plan is very important to planning for the City's future, and he added that Staff is committed to carrying out the items in the plan. Councilmember Leigh asked how other communities handle subdivisions being developed without cable/internet. Mr. Listi said that initially the City addressed it as a requirement in the Subdivision Ordinance, but the City received resistance from the cable companies who said that they may not put the fiber in, even if the conduit is in place. The companies have certain criteria that determines when they will put lines in based on actual household count. The criteria may include density, number of customers, or some other factors. It is a matter of scheduling, timing and cash flow for them. Mr. Leigh said that, at one time, it was a franchise type thing. Mayor Grayson said that the State took that away, but she added that Belton's State Representative, Hugh Shine, has promised to make it a high priority. She said that it should be a requirement like telephones were back in the day. Mr. Leigh said the City should encourage TML to lobby for it, especially the Small Cities group at TML. Councilmember Dan Kirkley expressed his appreciation for all the work completed by Staff. He said it speaks highly of Staff and Council that the City is able to provide what is wanted and desired for the community. No action was required by the Council on this item. FY2018 Budget 7. Receive a presentation on the FY2018 budget process and offer input on key policies and initiatives. Director of Finance Brandon Bozon provided an overview of the FY2018 budget process as shown in Exhibit "B." Mr. Bozon explained that personnel comprise 64% of the City's budget. He reviewed changes made in the personnel structure over the Belton City Council Meeting June 13, 2017 - Page 3 last few years. He said that three full-time positions were added in FY2017 for part of the year, and there were five new personnel requests for FY2018 . Mr. Bozon said the General Fund Budget Initiatives for FY2018 include: • Continue the Capital Equipment Replacement Fund for replacement of vehicles, computers and HVAC systems. • Civil Service pay adjustments will be necessary based on the compensation study. A three-year phased-in approach is being recommended subject to revenues. • Street Maintenance Plan Years 4 and 5 are currently unfunded and need attention. He stated that fund balance at September 30, 2017, for the General Fund is estimated at $1 .8M in excess of the minimum required. Councilmember Kirkley asked what the effect was on the City from online sales. Mr. Bozon said there has still been fairly strong sales tax growth in the Central Texas area, and the State has been cracking down on the online retailers. Large retailers like Amazon remit sales tax to the State, which is then disbursed to the cities. He does not believe there has been a large negative effect. Councilmember O'Banion asked for more historical information on the fund balance. Mr. Bozon said that the fund balance has been growing over the last few years, and monies are available should the Council desire to utilize it for FY2018 initiatives. Councilmember Leigh asked Mr. Bozon to provide a chart that shows a trend line of the fund balance over the years. Mr. Bozon explained that the Water & Sewer Fund Initiatives for FY2018 include: • Continue the Capital Equipment Replacement Funds for replacement of vehicles, equipment and meters. • Upgrade the SCADA system . • Capital projects. • Debt funded capital projects. Mr. Bozon said the budget includes adjustments to the water and sewer rates as outlined in the five-year rate plan adopted by the Council. Each will increase $0.50 on the base rate only. Mr. Bozon reviewed water and sewer projects on the horizon and the estimated costs for each. Mr. Bozon said that the Drainage Fund does not include capital equipment replacement at this time due to the lack of available funds. He explained there has been no change to the $3 monthly drainage fee since its inception in 2008. In order to fund replacement of capital equipment, as well as significant drainage projects, management is recommending the Council consider an increase to $5 per month, Belton City Council Meeting June 13, 2017 - Page 4 which would generate an estimated increase of $120,000 annually ($60,000 increase per $1 increase). Mr. Bozon added that the fund balance is estimated to be $260,326 at September 30, 2017, which is $168,995 above minimum. Councilmember Leigh asked if there was an index that the drainage fee could be tied to so the Council would not be required to approve each fee change. He suggested possibly the valuation of property. Mr. Bozon said that the drainage fee could follow the CPI, but it would still require Council approval with each change. He did not think it would be feasible to tie it to the value of a house. Councilmember Sanderford asked if the AMI metering project was meeting its performance goals. Mr. Bozon said that the City has definitely seen improvement in capturing water usage which results in more revenue to the City. Director of Public Works Angellia Points said that the majority of water loss is attributed to fire hydrants, water main breaks, leaks in the waterlines and theft of water. Mr. Sanderford said that AMI guaranteed that the amount of water going through the meters would be accurate, so billing would also be accurate, which eliminates inaccurate meters from being a cause of lost revenue. Councilmember Leigh asked for data that shows the increased revenue is paying for the project. Councilmember Leigh asked about the fund balance in the Drainage Fund. Mr. Bozon said that there is approximately $158,000 of which $43,000 will be used to pay debt service on the refunding issue that was just approved . Mr. Listi said that Staff would appreciate input on the scheduled water and sewer rate adjustments and the increased Drainage Fee. Councilmember O'Banion said that it makes sense to increase the Drainage Fee. He added that he is appreciative of Staff. He said that the budget initiatives outlined show that Staff has been paying attention to the desires of Council. No action was required by the Council on this item. There being no further business, the Mayor adjourned the meeting at 6:28 p.m.  m >< I City of Belton OJ --i ~ trategic Plan Review Priority 1 Goal : FY 201 7  Priority 1 Goals: FY 201 7 Below is a summary of a total twenty (20) FY 2017 Priority 1 Goals, Proposed Funding, and Assigned Coordinators for anticipated goal achievement in FY 2017. Other near term Priority Goals are summarized in year 2 (FY '18) and year 3 (FY'19) of the Strategic Plan. Goals for FY 2020 and FY 2021 are also previewed. Goal Category Strategic Plan Goal Funding Coordinator Implement balancea tax/fee scfieoule Staff Resources Director of Finance a following analysis b Implement Growth Management Strategy Staff Resources City Manager c Update/Implement Comprehensive Plan Staff Resources Director of Planning d Develop Comprehensive Analysis on Dog Staff Resources Director of Finance Ridge Water Supply Corporation (DRWSC) Prepare Employee Compensation Pan Director of Human e Update - Salary, Benefits, Classifications, Job Staff Resources Resources Descriptions Director of Human f Enhance Safety Training for City Employees Staff Resources Resources Implement Capital Equipment Replacement $987,781 Director of Finance a Plan for PD, FD, PW & IT Public Safety b Develop Police Dept. and Fire Dept. Strategic Police/Fire Staff Resources Plan Updates Chiefs Priority 1 Goals : FY 201 7 (Cont.) Goal Category Strategic Plan Goal Funding Coordinator Continue CIP (2013/15) Implementation/ a $6 ,500,000 Director of PW plan for future needs 2013 /1 5 CIP; BEDC, b Implement Street Maintenance Plan Director of PW TIRZ Quality of Life Implement MLK/Main Intersection c $155,742 TIRZ Director of PW Improvements Plan Enhancement for fi th Ave. d TBD Director of PW Develop / Implement Downtown Revitali- Director of a $200,000 TIRZ zation Plan Planning $500,000 Design b Plan/Implement S. IH 35 Sewer Director of PW ($6.0M constr. cost) Economic Conduct two joint meetings; Enhance Development City Manager I c coordination between City/ BEDC to $528,500 BEDC Exec. Dir. maximize project success Develop Hotel/Conference Center Convention & d TBD Assessment Tourism Manager $2.6770M ($534, l 23 Local ; a Expand Hike/Bike Trail Director of PW $2.136M TxDOT Connectivity grant) b Se cu re ROW for Lake to Lake Road TBD City Manager Director of c Facilitate Cable/Fiber Service Expansion Staff Resources Planning Parks/Natural Implement updated City's Parks and Director of Parks & a TBD Beauty Recreation Master Plan Recreation  Priority l Goals : FY 20 l 7 Ill Project Status/ Strategic Plan Goal Projected Completion Important Information I Date - Monitoring Revenue Closely Ongoing/ - Utility Rates Adjustment (Year 4) Implement Balanced Tax/Fee Schedule Tax Rate, Utility - Drainage Fee Review following analysis Fee Schedules: - Ambulance Service Changes 09/19/17 - State Legislature Impact - City/BEDC Project Partnership Complete / - Monitoring Special Session b) Implement Growth Management Strategy 12/16/17 - Comment Period Draft Complete/ - Public Meeting 06/19/17 c) Update/Implement Comprehensive Plan 09/30/17 - Joint P&ZC/CC - Adoption to Follow Analysis u/w by - KPA Analyzing BEDC Interest Areas Develop Comprehensive Analysis on Dog KPA & DPW/ - DPW Analyzing Related City Areas Ridge Water Supply Corporation (DRWSC) Fall 201 7 - Analysis/Discussion w/BEDC/CC Needed Prepare Employee Compensation Plan - ln-liouse Salary Classification Study Underway/ Update - Salary, Benefits, Classifications, - Job Descriptions 09/30/17 Job Descriptions - Benefits Review - Identified Local Gov U: 200 Municipal Enhance Safety Training for City Ongoing/ Courses Available Free Employees 09/30/17 - Training Conducted: Confined Space - Sexual Harassment Training Planned  Priority 1 Goals: FY 201 7 Project Status/ Ill Strategic Plan Goal Projected Completion Date Important Information Ongoing/ - All Equipment Replacement Plans are Implement Capital Equipment Annual Budget Up-To-Date and Fully Funded Except for Replacement Plan for PD, FD, PW & IT Adoptions; Except Drainage. for Drainage - Assess Drainage Fee Adjustment - 2018 - Prevention Focused Policies Achieving Results: - Prevention b) Develop PD Strategic Plan Update Completed/ - Safety Ongoing Updates - Partnerships - Team - Qua Iity of Life - ICMA Study Goals Virtually Complete Completed/ c) Develop FD Strategic Plan Update - Training Emphasized Ongoing Updates - Texas Fire Chiefs' Recognition Next Goal  Priority 1 Goals: FY 201 7 - Strategic Plan Goal a) Continue CIP (2013/2015) Imple- Project Status/ Projecte Com letion Date - - - Important Information S. Wall Sidewalks: Summer 201 7 S. Main Water Line/Sidewalks: Nov/2017 N. Belton Water Tank: Winter 2018 Ongoing - TBWWTP Expansion Ph. 1: Bidding, Sum- mentation Plan for future needs mer 2018 - Sparta Road: Summer 2018 - Yrs. 4-5 not fully funded b) Implement Street Maintenance Plan Ongoing; Yrs. l -2 done, Discuss increasing annual budgeted Yr. 3 u/w amount Implement MLK/Main Intersection Uncterway/ - En ance operation of Main, MLK inter- Improvements Summer 2017 section Met w/Utility Companies; - Gather information Plan Enhancement for 6th Ave. Cost estimate in - Begin planning; funding in 2018/2019 development Develop [ibrary Master Plan Mgt. visits to area libraries (Georgetown, Round Rock, Pflugerville) - Water /Wastewater Master Plan Updates Future 2019 & Beyond suggest Master Plan of - Water System Modeling/Flows current space and plan - Drainage Master Plan Update renovations/additions as needed  Priority 1 Goals: FY 201 7 Ill Project Status/ Strategic Plan Goal Projected Completion Important Information Date - Sign program scheduled by June 30 I Develop/Implement Downtown - CDBG grant for East Street Summer 201 7 ' Ongoing Revitalization Plan Combination TIRZ/Grant funding I - Open up S. IH 35 corridor Bid Late Summer / - Parallel water line discussed with BEDC b) Plan / Implement S. IH 35 Sewer Complete Fall 2018 - Priority Projects discussed at Joint Mtg, Enhance Coordination between City/BEDC Underway - l of 2 and will be focus of budget meeting this to maximize project success meetings held summer - Hunden developing Study d) Develop Hotel/Conference Center - Local Meetings held May 30-3 l, 201 7 Underway Assessment - Analysis Underway on 3 general areas - Report expected late August 201 7 ! - Retail Coadi aeveloping Study - Preliminary Retail Match List Developed e) Retail Marketing Strategy Underway I - Focus on retailers and developers : - Beginning marketing effort  Priority l Goals : FY 20 l 7 Ill Project Status/ Strategic Plan Goal Projected Completion Important Information Date - Rike and Bike Trail - Along University, Ongoing/ under railroad along Commerce, to Design Underway; Sparta a) Expand Hike/Bike Trail Bid 2018 Complete 2020 - TxDOT Grant Application Submitted for Next Phase IH 35 Linkage - Project highly ranked at KTMPO - Meetings held with USACOE on ROW - MOU requested between b) Secure ROW for Lake to Lake Road Ongoing TxDOT /USACOE - Belton Lake Park Master Plan Under Development - Bell County Participation Important - Meetings continue between City/Utility c) Facilitate Cable/Fiber Service Expansion Ongoing Providers on policy for cable/fiber installation with new development  Priority 1 Goals: FY 201 7 Ill Project Status/ Strategic Plan Goal Projected Completion Important Information Date - Master Plan Update adopted 09I1 3I1 6 with priorities identified - Trails, Athletic Fields, Day Park, Natural Areas, Water Recreation - Parks Opened: a) Implement updated City's Parks and Recreation Ongoing - Jeff Hamilton and Nolan Creek Master Plan Nature Trail - Trail work underway - Other Land Acquisition for large park on hold pending resolution of budget challenges EXHIBIT "B" 2018 BUDGET CALENDAR • March-May • Department budget development • Revenue projection development • Department budget review with City Manager and Finance • June - August • Council input on policy directives • Budget presentations to Council • Strategic Plan review and update • Proposed budget filing • September • Public hearings • Strategic Plan adoption • Budget adoption FISCAL YEAR 2017 REVIEW General Fund & Debt Service Fund • Capital $16,000,000 Strategic Plan • Contingency $14,000,000 • Employee Development $12,000,000 Outside Services • Supplies $10,000,000 • Repairs & Maint $8,000,000 • Personnel • Contributions $6,000,000 • Utilities & Insurance $4,000,000 • Refuse Contract • Bell County $2 ,000,000 • Debt Service FY2017 PERSONNEL PRESSURES: FY 2018 • Absorbing FY 2017 New Personnel • Planner • Crime Scene Technician • Fleet Mechanic • New Personnel Requests • Building Maintenance Worker • Customer Service Representative (Water & Sewer) • Police CSS Manager • Fire Training Officer • Parks Maintenance Worker • Compensation Study • Benefit Costs • Anticipate 10%+ increase in health insurance from 2017 rates GENERAL FUND BUDGET INITIATIVES • Capital Replacement Plan • Successfully implemented for Public Works, PD, FD, IT and HVAC • Civil Service Pay Adjustments • Preliminary results of the compensation study indicate adjustment necessary • Final amount to be determined based on revenues • Three year plan to phase adjustments • Preventative Street Maintenance Plan • Years 1 & 2 completed, year 3 in construction phase • Remaining years 4 & 5 unfunded • Three year plan to double current general fund allocation ($125,000) • Approximate annual cost of $1-1.5 million GENER.AL FUND REVENUE • Preliminary estimates show total revenue growth at approximately 4% ($540,000) • Trends and outlook • Expected strong growth in certified values • Sales tax rebounding • Positive trends in charges for services, franchise tax, interest and miscellaneous • Negative trends in effluent sales • Uncertainty in ambulance revenues POLICY DIRECTION • Fund Balance - General Fund • Ended FY 2016 with a fund balance of $5,037,278 • Balance in excess of minimum of $1,817,094 at 9/30/16 • FY 2017 budget unbalanced by $99, 989 • No amendments to date for additional fund balance use in FY 2017 • Revenues anticipated to come in approximately $145,000 stronger than budget • Fund Balance - Debt Service Fund • Ended FY 2016 with a fund balance of $158,685 • FY 2017 budget balanced • Anticipate request of approximately $55,000 of fund balance due to bond refunding • Revenues anticipated to come in approximately $12,000 stronger than budget • Request to use fund balance in FY 2018 budget development FISCAL YE.AR 2017 REVIEW Water & Sewer Fund $8 ,000,000 • Cap ital Outlay $7 ,000,000 • Cap ital Proje ct s • Contingency $6,000,000 Employee Development • Outside Service s $5 ,000,000 • Supplie s • Repa irs & Maint $4 ,000,000 • Personnel • Operating Tran sfers $3 ,000,000 • Utilities & Insurance • Sewerage Treatment $2 ,000,000 • Water Purcha ses • Debt Service $1 ,000,000 $0 FY 2017 WATER AND SEWER BUDGET INITIATIVES • Capital Replacement Plan • Successfully implemented for vehicles, equipment and meters • SCADA system upgrades • Remote view into our water and wastewater system • Ability to more effectively monitor issues and conduct preventative maintenance • Capital Projects • South Main waterline • Waco Road sewer replacement • Mary Jane utility replacements • Leon Street sewer replacement • Ave B waterline replacement • Ave S waterline replacement • Debt Funded Capital Projects  Project Timeframe Cost Wastewater Plant Rehabilitation Phase I 2015 $2,800,000 Nolan Creek Sewer Trunk Line Replacement 2015 $1,200,000 South Belton Sewer Service 2015-2016 $5,000,000 AMI 2015 $4,300,000 Wastewater Plant Rehab/Expansion Phase II - IV 2017 -2019 $8,000,000 Main Replacements 2015-2019 $1,250,000 Sewer Truck Replacement 2017 $350,000 North Water Tank 2017 $3,000,000 $25,900,000 THE PL.AN: UPDATE Debt Funded Projects Project Cost FY 2018 Issue FY 2019 Issue WWTP Phases II $ 7,500,000 $ 7,500,000 $ - WWTP Phases Ill-IV $ 3,000,000 $ 3,000,000 Waco Road Sewer $ 300,000 $ 300,000 Main Lift Mai n Replacements $ 700,000 $ 700,000 Issue Costs (2018) $ 125,000 $ 125,000$ - Issue Costs (2019) $ 45,000 $ 45,000 Total $ 11,670,000 $ 8,625,000 $ 3,045,000 Anticipated Debt Service Cost $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 BCWCID 8 Existi ng FY 2018 Issue FY 2019 Issue POLICY DIRECTION - UTILITY RATE PLAN Table 1: Recommended Water Rates Table 2: Recommended Wastewater Rates • Anticipated FY 2018 revenue impact: $82,880 • Anticipated debt service cost for FY 2018 issue: $503, 7 45 • Growth and previous rate adjustments are primary sources of funding for new issue FISCAL YEAR 2017 REVIEW Drainage Fund $400,000 $350,000 $300,000 • Cap ital Projects • Supplies $250,000 • Outside Services • Repairs & Mai nt $200,000 • Personnel $150,000 • Debt Service $100,000 $50,000 $0 FY 2017 DRAINAGE FUND INITIATIVES • Capital Replacement • No plan currently in place due to funding constraints • Street sweeper is near end of life, approximate replacement cost of $250,000 • Significant Projects (FY 2014 - FY 2017) • Connell Street: $522,606 • Sparta Road: $252,077 • Wheat Road: $193,327 • Studies (Nolan Creek, Dawson, Red Rock, MS4 Permit, Master Plan): $107,815 • Development agreements (Dawson, Bella Rose): $30,913 • Average of approximately $276,000/year in project needs • Future Projects • Red Rock Pond Improvements • Liberty Hill Drainage Improvements • Mitchell Branch Drainage Study and Improvements downstream of Connell • Drainage Improvements to Blair and 4th Ave DRAIN.AGE POLICY DIRECTION • Fund Balance • Ended FY 2016 with a fund balance of $260,326 • Balance in excess of minimum of $168,995 at 9/30/16 • Request use to fund a portion of the street sweeper cost • Fee Change • Current residential fee of $3 per month has been unchanged since adoption in 2008 • All neighboring communities have now increased to $6 per month • Each $1 per month adjustment generates approximately $60,000 in revenue • Potential increase to $5 per month for residential customers • Commercial rates currently in line with comparator cities RECAP • Initiatives • Civil service compensation • Street maintenance plan • Water and sewer projects • Drainage projects • Council Direction • Use of debt service fund balance to manage ad valorem rate • Implementation of year four of water and sewer rate study • Use of drainage fund balance and rate adjustment