City Council

Belton City Council Meeting August 13, 2019- 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, Mayor Pro Tern Wayne Carpenter and Councilmembers David K. Leigh, Craig Pearson, Guy O'Banion, Dan Kirkley and John R. Holmes, Sr. Staff present included Sam Listi, Gene Ellis, John Messer, Amy Casey, Susan Allamon, Chris Brown, Paul Romer, Bob van Til, Angellia Points, Charlotte Walker, Bruce Pritchard, Judy Garrett, Cynthia Hernandez, Kim Kroll and Tina Moore. The Pledge of Allegiance to the U.S. Flag was led by Mayor Marion Grayson, and the Pledge of Allegiance to the Texas Flag was led by Grants and Special Projects Coordinator Bob van Til. The Invocation was given by Bruce Lovesmith, Associate Pastor of Fellowship Baptist Church. 1. Call to order. Mayor Grayson called the meeting to order at 5:33 p.m . 2. Public Comments. Pastor Gary Kent, 700 S. Main Street, said he is the Senior Pastor of Central Texas Cathedral Worship Center which is the former Calvary Baptist Church. He wanted the Council to know that he and his congregation are willing to help the community in whatever manner is needed. City Manager Sam Listi introduced Tina Moore. Mrs. Moore replaced Kelly Atkinson as a Planner in the Planning Department. Consent Agenda Items 3-6 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 minutes of July 23, 2019, City Council meeting. 4 . Consider appointments to the following Boards and Commissions: A. Library Board of Directors - appointment of Kari Martin, Janice Pustka, Peggy Williams and Jennifer Watson. B. Housing Board of Adiustment - appointment of Timothy Watson. 5. Consider authorizing the City Manager to execute an amended lnterlocal Agreement between the City of Belton and the Belton Independent School District for the School Resource Officer Program. 6. Consider a resolution authorizing the submittal of an application to the Texas Department of Transportation for the Safe Routes to School Grant. Belton City Council Meeting August 13, 2019 - Page 2 Upon a motion by Councilmember Holmes, and a second by Mayor Pro Tern Carpenter, the Consent Agenda, including the following captioned resolution, was unanimously approved by a vote of 7-0. RESOLUTION 2019-19-R A RESOLUTION SUPPORTING "W. AVENUE HANDS. PEARL SIDEWALK SAFE ROUTES TO SCHOOL PROJECT" APPLICATION TO THE TEXAS DEPARTMENT OF TRANSPORTATION'S 2019 TRANSPORTATION ALTERNATIVES SET-ASIDE (TASA) / SAFE ROUTES TO SCHOOL-INFRASTRUCTURE (SRTS) CALL FOR PROJECTS Miscellaneous 7. Consider authorizing the Citv Manager to execute a contract with RT Schneider · Construction for construction of the E. 24th Avenue Extension Proiect, and any change orders associated with the contract, not to exceed the amount authorized under State law. Director of Public Works Angellia Points reminded Council that in May 2018, the City purchased 83 acres to expand Heritage Park. The agreement required that the City extend E. 24th Avenue to provide connectivity to the adjacent land not purchased by the City. Staff identified E. 24th Avenue as the road to be extended into the new parkland with new street connections to River Oaks Drive and future Park Lane, which will connect to the Gated River One LLC , property. Mrs. Points said the project was designed in-house, but it still required some expenditures which included: • Survey provided by All County Survey $7,900 • CAD Services provided by Turley Associates $20,000 • Geotechnical Engineering provided by Langerman Foster Engineering $5,100 • Construction Staking and Cut Sheets to be provided by Turley Associates $9,500 • Totaling $42,500 Points explained that the project includes approximately 1,600 LF of 31-foot (back of curb to back of curb) roadway, 1,200 of 8-inch waterline, fire hydrants, water connections, one street light at the intersection of E. 24th Avenue and River Oaks Drive, stormwater piping , erosion control, traffic control, and signage including Heritage Park directional signage on SH317/N Main Street and within the neighborhood leading into Heritage Park. On July 18, 2019, seven (7) bids were received for the project. The Director of Public Works/City Engineer and the Assistant Director of Public Works evaluated the bids received . RT Schneider Construction's last project for the City of Belton was the Sparta Roadway Extension project in 2004. Although the City of Belton has not Belton City Council Meeting August 13, 2019 - Page 3 worked with RT Schneider recently, they have worked with and for the City of Temple, UMHB, City of Harker Heights, KPA, Turley Associates, etc. After speaking with a few references, it was apparent that RT Schneider has the capabilities and quality of work to successfully construct the E. 24th Avenue Extension Project. The construction is estimated to take approximately eight months and will cost $557,352.85. Funding is allocated in the TIRZ Fund. Mayor Grayson asked about the light proposed for E. 24th Avenue at River Oaks. Mrs. Points explained that it is a street light and not a traffic light. Councilmember Leigh asked if there is a plan to cross the river or to secure right-of- way for a future connection to IH-35 from the hammerhead at E. 24th. Mrs. Points said that it could be done since the City owns land in each direction from the hammerhead which will allow flexibility for alignment. Mrs. Points and Councilmember Leigh agreed that a Thoroughfare Plan amendment would be beneficial. Upon a motion by Councilmember Leigh, and a second by Councilmember Pearson, Item #7 was unanimously approved by a vote of 7-0. 8. Consider authorizing the City Manager to execute a contract with Smith Contracting for construction of the Shady Lane Sewer Interceptor Proiect, and any change orders associated with the contract, not to exceed the amount authorized under State law. Director of Public Works Angellia Points said the City received three (3) Community Development Block Grants (CDBGs) to construct three separate sections of the sewer line between the Public Works office area to, and just south of, the City's main lift station that pumps all of the City's sewer to the Temple-Belton Wastewater Treatment Plant. About half of Belton's sewer is sent through the Miller Heights area, and a majority of the sewer flows down the Shady Lane sewer line. The sewer from Three Creeks is also sent through this area. Mrs. Points explained that with the most recent CDBG project completed in 2016, the 12" sewer line was paralleled with a new 21" sewer line, which now has a capacity of 12.95 MGD near Shady Lane/Belle Oaks Apartments and 15.19 MGD near the lift station. The 2011 CDBG project replaced an existing 12" with a 15" and 12" line ranging in capacity downstream of 7 .1 MGD to 1.33 MGD upstream near Magnolia. The South Belton Sewer System (SBSS) Project will connect into the sewer on Shady Lane. The SBSS is designed for 7.75 MGD of sewer, including the 1.8 MGD build out of Three Creeks. Therefore, the sewer line along Shady Lane between the Public Works facility and Belle Oaks Apartments needs to be increased in size or paralleled to prevent overflows form occurring in the future as development continues. In February 2018, the City entered into a professional services contract with Halff Associates to design the Shady Lane sewer project. They evaluated replacing the 2011 CDBG sewer line or installing a parallel interceptor. After much deliberation, Halff and Staff agreed it was more cost effective and was less disruptive to the Belton City Council Meeting August 13, 2019 - Page 4 customers on Shady Lane for the City to install a true sewer interceptor (24" to 30" in diameter) in Shady Lane in order to carry the flows from Three Creeks and South Belton. The fully-developed flows through this sewer line interceptor are projected to be 12.7 MGD, which includes flows from existing Miller Heights area, a future BISD school site, South Belton Sewer, and taking two lift stations. Mrs. Points said the design was completed in March 2019, and TCEQ provided their approval of the project in late May. The project was advertised in June and bid on July 23, 2019. The project was bid with two alternative bids. Alternative Bid 1 accounts for the addition of an 8" waterline between the Public Works yard and Shady Lane. Alternative Bid 2 accounts for coating each of the proposed manholes. Five (5) bids were received for the project. The Director of Public Works/City Engineer, the Assistant Director of Public Works, and Halff Associates evaluated the bids received . The low bidder, MA Smith Contracting (Smith) of Austin , successfully constructed Sparta Road Improvements, including the roundabout. Also , Halff Associates has worked with Smith on numerous projects. After review of the bids, Halff and Staff recommend proceeding with Smith's base bid and Alternative Bid 2 (manhole coatings) . Alternative Bid 1 is not recommended for award since the waterline price is higher than expected and is not a critical need. Construction is estimated to take six months, and the total cost of the base bid plus Alternative Bid 2 is $1,083,887.70. Funding is allocated in the 2016 Water and Sewer Bond Fund. Upon a motion by Councilmember Holmes, and a second by Councilmember Kirkley, Item #8 was unanimously approved by a vote of 7-0. 9. Consider authorizing the City Manager to execute an agreement with American Medical Response Ambulance Services, Inc. (AMR), for the provision of emergency medical services within the City. City Manager Sam Listi said the proposed agreement between AMR and the City of Belton is the result of negotiations between the parties over the last several months, following a Management recommendation to Council on June 11 , 2019, to contract out EMS services in the City. This recommendation was not made lightly, given the legacy of outstanding, directly provided services in Belton for decades, but with all prudence, given the documented challenges of revenue and staffing in the Belton Fire Department over the last fifteen months. Mr. Listi said that an initial trial period began on April 1, 2019, in which AMR served as backup to a reduced fleet of one operating City ambulance. Staff has come to the conclusion that outsourced EMS service is the only practical response for sustainable EMS service delivery at this time. Mr. Listi said a Fire Department Model was proposed to the Council in June, with AMR providing EMS and the City of Belton providing a Paramedic Engine Company for Priority 1 calls and all other fire and emergency service response. The Agreement with AMR is for one year, with two 1-year renewal options, leaving the opportunity for the Council to revisit this decision in the future. Belton City Council Meeting August 13, 2019 - Page 5 Summary of Agreement Terms • Term: One year, with two 1-year renewal options • Personnel: Two - 1 paramedic and 1 EMT on each ambulance • Response Time: Not to exceed an average of 7.5 minutes • Ambulance/Stretchers: - City vehicles (3) branded "Belton EMS" - Leased to AMR at $2,100 per month ($700 each) - Housed at two fire stations • Crew Quarters at Stations: Lease payment to COB of $1,600 per month ($800 each) • Ambulance Rates: AMR RATES ~~ COB RATES $0 $200 - $700 (Depending on care provided) ALS Emergency Base Rate $1,125 $850 ALS Emergency Mandated $1,125 $950 BLS Emergency Base Rate $900 $600 Mileage $20 $15 Non-Covered Excess Mileage $15 $15 AMR may increase rates yearly on the contract anniversary date not to exceed the percentage increase in the Medical CPI during the most recent 12-month period for which published figures are available from the U.S Department of Labor. Mr. Listi explained the contract will provide a net positive of approximately $94,235 with the elimination of $614,235 in EMS expenditures and the offset of $520,000 in lost ambulance revenue. Councilmember Holmes questioned the staffing of up to eight firefighters per shift across three shifts, saying that all the illustrations show six firefighters. Mr. Listi said eight firefighters will be scheduled, but that level of staffing allows the flexibility for time off or training. He said the minimum staffing per shift would be six. Mr. Holmes asked if six firefighters was adequate for fighting fires. Mr. Listi said, "We believe that it is adequate at this time, but it can always be supplemented in the future." He added that for major incidents, the City will rely on mutual aid to supplement the City's resources. Mr. Holmes asked if the City was fully staffed now, how many firefighters would be on shift. Mr. Listi said there would be four with two on the ambulance and two on the fire truck. He added that in the past, the firefighters on the ambulance were available for fighting fires unless they were transporting a patient to the hospital, then they were out of the City and unavailable. Belton City Council Meeting August 13, 2019 - Page 6 Councilmember Leigh asked how many firefighters were added when the second station was built. Mr. Listi said six positions were added at that time. Mr. Leigh said that what is being proposed now is more coverage than what the City had 15 years ago. Mr. Listi added that ISO was brought up the last time this topic was discussed. He said that EMS service has no bearing on the City's ISO rating. Councilmember O'Banion asked how the AMR rates compare with the surrounding cities who have privatized their EMS services. Mr. Listi said the proposed rates are the same as those in the other cities. Mr. Robert Saunders of AMR said it is the same rates as Bell County and the City of Temple, but the rates for the City of Waco are a little different due to the number of ambulances Waco has. Councilmember Holmes asked who is going to staff football games. AMR will staff the ambulance at the football games. Councilmember Leigh said the contract with AMR is a good step, and the Council has the flexibility to review it each year to see if it needs to continue. Mr. Listi said that Staff has been pleased with the services provided by AMR thus far. Mayor Grayson added that it has been a tough year with the loss of the paramedics. She was not in favor of going with an outside ambulance service, but she felt there was no other option. She asked if it was easier to hire just firefighters or if there will be a problem filling the one vacancy. Fire Chief Pritchard said he thinks it will be easier to hire firefighter/EMTs. He said the City will still have the option of sending the existing personnel to paramedic school. Councilmember Kirkley said that some smaller cities in the region have no EMS service at all, and while this isn't necessarily the Council's first choice, he believes that it is the right choice for now. Councilmember O'Banion said he has a minor concern about recruitment. Mr. Listi said the department will continually test to create the list to draw from in order to maintain the 24 firefighters. Councilmember Carpenter said he appreciates Staff working through this issue as the Council wants the very best for the citizens of Belton. Upon a motion by Mayor Pro Tern Carpenter, and a second by Councilmember Kirkley, Item #9 was unanimously approved by a vote of 7-0. FY 2020 Budget 10. Presentation of proposed FY2020 Ad Valorem Tax Rate. Belton City Council Meeting August 13, 2019 - Page 7 Interim Director of Finance Susan Allamon presented a comparison of the FY2019 vs. FY2020 certified tax roll. She said the FY2020 total market value increased approximately $298.7M over FY2019, and the taxable value increased approximately $146.7M. She also discussed the historical ad valorem tax rate data. The highest tax rate in the last 15 years was $0.7350 in 2004. She said that the FY2020 Non-TIRZ growth is 9.74% and the annualized growth has been 5.81% since the creation of the TIRZ. Allamon reviewed the definitions of the various tax rates including the effective tax rate and the rollback tax rate. She also presented the effective rate ($0.6178), the current rate ($0.6598) and two options for the rollback rate. She explained that the rollback tax rate calculation splits the tax rate into two separate components: the maintenance and operations rate and the debt service rate. The rollback rate is the effective M&O rate times 1.08 plus debt service rate. She added that the adoption of a tax rate above the rollback rate could trigger an election if petitioned by 10% of registered voters. Mrs. Allamon said that in one option the City is buying down the debt service rate by using Debt Service Fund fund balance. This allows the City to increase the M&O rate to be able to fund more maintenance and operations projects. Should the Council choose not to buy down the debt service rate, then the tax rates would be those in the second option. Budget FY 2020 FY 2019 FY 2020 Comparison of Tax Rates $0.6598 $0.6178 $0.6598 $0.6599 $0.6809 Current Rate Effective Rate Current Rate Rollback Rate Full OS Rollback Taxable Value $1,120,153,343 $1,266,853,635 $1,266,853,635 $1,266,853,635 $1,266,853,635 O&MTaxRate $0.5650 $0.5292 $0.5712 $0.5713 $0.5713 Debt Service Tax Rate $0.0948 $0.0886 $0.0886 $0.0886 $0.1096 Total Tax Rate $0.6598 S0.6178 $0.6598 $0.6599 $0.6809 Change from current rate ($0.0420) $0.0000 $0.0001 $0.0211 Total Tax Levy $7,390,772 $7,826,622 $8,358,700 $8,359,967 $8,626,006 Estimated Collections • 97% $7,169,049 $7,591,823 $8,107,939 S8,109,168 $8,367,226 General Fund Current Ad Valorem $6,139,000 $6,503,064 $7,019,180 $7,020,409 $7,020,409 Payment to TIRZ ($751,528) ($965,227) ($1,041,832) ($1,042,015) ($1,042,015) Net General Fund Current AV Taxes $5,387,472 $5,537,837 $5,977,348 $5,978,394 $5,978,394 Debt Service Current Ad Valorem $1,030,048 $1,088,759 $1,088,759 $1 ,088,759 $1 ,346,817 Payment to TIRZ ($126,097} ($161,601) ($161,601) ($161,601) ($199,903) Net OS Current AV Taxes $903,951 $927,159 $927,159 $927,159 $1,146,914 Each $1M ofTaxValue@97% $6,400 $5,993 $6,400 $6,401 $6,605 Penny Tax@ 97% Collection $108,655 $122,885 $122,885 $122,885 $122,885 Penny Tax~ 97% • netofTIRZ $95,353 $104,645 $104,645 $104,645 $104,645 Value of Average Home in Belton $164,329 $177,118 $177,118 $177,118 $177,118 Tax on Average Home $1,084 $1,094 $1,169 $1,169 $1,206 Change from current year $10 $85 $85 $122 Mrs. Allamon also discussed the potential effects of SB2 on the City's ad valorem tax rate next year which caps tax revenue at 3.5%. Belton City Council Meeting August 13, 2019- Page 8 Councilmember Holmes said the TIRZ Fund has grown dramatically to where it is about 20% of the budget, but it doesn't pay for Police, Fire, EMS, street maintenance, etc. He believes that it "hamstrings" the M&O portion of the General Fund somewhat. He added that in the past, the City has increased the M&O rate by buying down the debt service, and this year's proposal repeats that, lowering it even further to $0.0886. He is concerned that at some point in time, the City will have to make up the full debt service. It will dramatically increase the M&O and possibly cause a large tax increase. He said he is against hypothetically inflating the M&O. Councilmember O'Banion said he thought the plan was not to repeat that scenario again. Mr. Listi said that this has been the debt strategy that has been discussed for some time. The question has been how much it will take to make it work. Mrs. Allamon said that this is the last year that a debt service buy-down is anticipated. Councilmember Leigh said that there has not been an option presented that keeps the Debt Service tax rate the same as the current and the M&O tax rate the same as the current. He said the proposed rate is the same top line tax rate, but it is not the current component rates. The O&M rate is increasing, and the Debt Service rate is decreasing. He said it was a good strategy to move forward in prior years, but he thinks it has gone far enough. He said there hasn't been a rate presented that he would vote in favor of. Mr. Listi explained that the $0.6598 proposed rate puts the maximum amount possible into O&M, and it gives the City the flexibility to do the things that have been discussed including the pay increases and increased street maintenance. Mr. Leigh said, "When we discussed doing some of those things, we were using the 97% collection as the money we were going to use. We weren't talking about moving it from debt service." Mr. Listi said the 97% is included in the proposed budget. He added that it might be valuable to go through the clean-up budget item before deciding upon the proposed tax rate. Mayor Grayson said the reason the City adopted this scenario in the past was to keep the overall tax rate the same while allowing the City to purchase the expansion to Heritage Park. Mr. Leigh said he agreed with it the last two years, and he added that he also wants to get to the point of "pay as you go." However, he thinks the City has paid down the Debt Service as far as he is willing to go. Otherwise, the City may never get to the point of being able to cash fund projects. No action was required by the Council on this item. 11. Conduct Clean-up Budget Workshop. Interim Director of Finance Susan Allamon presented a cleanup of the proposed FY2020 budget as shown in Exhibit "A." Belton City Council Meeting August 13, 2019 - Page 9 Mayor Grayson asked how much 1% in additional collections will generate. Mrs. Allamon said approximately $63,500. Staff conservatively recommends 97% even though collections are between 97% and 98% . Councilmember Leigh believes that when the City first presented the buy down of the Debt Service rate, he saw different numbers. He asked, "This puts us further away from pay as you go, correct?" Mrs. Allamon said , "It does." Mr. Leigh said the buy down proposed for this year compared to last year is shifting a burden of approximately $78,000 from the General Fund into the Debt Service Fund, and that amount will have to be made up next year. He said, "We are shifting the burden from this year to next year, and that is why I cannot vote for the current proposed rate." Councilmember Pearson said, 'We need to maximize the M&O since we will be constrained next year. " Mr. Leigh said that has been done the last couple of years. Mr. Listi said , "We will be constrained at 3.5% next year not knowing how much growth we will have, so we are taking the rate up to almost the maximum amount possible in order to give us flexibility." Councilmember O'Banion asked how adopting the proposed rate will help the City. "Is it basically going to raise our starting point for next year?" Mr. Listi and Mrs. Allamon said yes. Councilmember Pearson said this is most likely the last time the City will have the opportunity to do this. Mr. Listi said , "Essentially we are using our savings in order to avoid a tax increase." Mr. Leigh said, "We are not avoiding a tax increase. We are moving numbers to allow for a maximum increase without having voter input." Councilmember Holmes agreed with Mr. Leigh and added , "We are arbitrarily raising our M&O." Mr. Leigh said , "That's fine. We've done that a couple of years now, and I believe it is a good strategy, but all it does is shift the burden forward ." Mr. O'Banion said , "We are playing with the numbers in order to put ourselves in the best possible position for next year. " Councilmember Leigh said, "Why not just go up on the tax rate?" Mr. Listi responded , "Council has provided direction throughout the entire budget process to maintain the same bottom line tax rate. In order to do that, we've put as much as possible into the M&O in order to address the multiple challenges before us." Mr. Leigh said there was originally $140,000 - $150,000 discussed, and now there is an additional $78,000. He asked why the numbers changed and asked what the money was being spent on . Mrs. Allamon said, "The Civil Service adjustment went up an additional $62,000 from the June presentation, and there was additional funding for street maintenance." Mr. Leigh said that when Council first looked at this, it was estimated there would be an additional $150,000 when the tax roll was certified . He said he doesn't remember a discussion about another $78,000 being needed. Councilmember O'Banion said he agrees with the Staff's recommendation in order to put the City in the best possible position. He added that he also wants to get to a "pay as you go" system in the near future as recommended by Mr. Leigh . He thought he remembered a conversation with the former Director of Finance about this Belton City Council Meeting August 13, 2019 - Page 10 strategy of buying down the debt service rate coming to end possibly in this proposed budget. Mr. Listi said Staff has taken direction from the Council and has tried to build a budget around the available dollars, staying within the bottom line tax rate and maximizing M&O to allow flexibility. He added that it does require a contribution to debt service in order to stay at the same tax rate. Councilmember Leigh said his direction was to stay within the same tax rate and go with the increased appraised values to do some initiatives. "I was very clear that I think this has been a good strategy, but I cannot support it again . I said it then, and I'll say it now. I have not changed my mind or my input at all." Mr. Listi said Staff's recommendation is for Council to adopt a bottom line tax rate of $0.6598 with an O&M rate of $0.5712 and a debt service rate of $0.0886. Councilmember Holmes asked about Civil Service pay, specifically about the entry level pay. He said the entry levels seem to have a much lower increase than the more seasoned ranks. His concern is that the entry rate be competitive since he's heard of area cities increasing their salaries as well. Mr. Listi said Staff recognizes that it is a moving target, but the increases have made us more competitive moving from 84.5% of market to 93.2% of market. Listi said it is a good first step, but Council has agreed to review compensation each year. Mr. Holmes said the increase is misleading since certification pay was rolled into the starting pay. Director of Human Resources Charlotte Walker said that the consultant did not take certification pay into consideration when studying the market since certification varies widely from city to city. Councilmember O'Banion added that our entry level pay was more competitive than the seasoned ranks in the initial study. Fire Chief Pritchard agreed that the entry level pay is still fairly competitive compared to area cities. Councilmember Holmes said he spoke with a resident of Mesquite Road and asked if he thought spending $400,000 on a drainage project in the area was wise. The resident said that another property owner constructed a dam on their property, and the dam was partly responsible for the drainage issues that were occurring. Mr. Holmes said he doesn't think the Mesquite Road drainage project is a good idea. However, he added that he is in favor of the $0.50 increase in the Drainage Fee. Mr. Listi assured the Council that each project will reviewed in greater detail before committing to spend any funds . Councilmember Holmes asked if the Standpipe project will be completed in FY2020. Mr. Listi said that it will be a multi-year project. Mr. Listi said there is money budgeted in Hotel/Motel and TIRZ for the project in FY2020. Mayor Pro Tern Carpenter asked if TIRZ funds will be available to help with the Mesquite Road drainage project if the City chooses to fund the project. Mrs. Allamon said Staff will review the project to determine if any of it is allowed to be funded by TIRZ, and if so, it will be allocated appropriately. Mr. Listi said the TIRZ has been Belton City Council Meeting August 13, 2019 - Page 11 very valuable to the City, allowing the completion of projects that otherwise may not have been funded. He added that there are options for the TIRZ in the future with the expiration of the current TIRZ in 2024. Mr. Leigh agreed that the TIRZ has been very beneficial for the City. Councilmember Leigh asked, "What is the maximum tax rate we can collect?" Mrs. Allamon said taking the M&O rate all the way to the rollback rate, and adding the full debt service rate without the buy down will allow for a maximum rate of $0.6809. Mr. Leigh said this rate will protect the City the most in future years. However, he said he would recommend keeping the rates the same as they are currently. Mr. O'Banion asked where the money for the initiatives would come from if the City maintained the current rates. He said he likes the proposed budget, and he thinks the initiatives are important. He added that the City could transfer money from fund balance to cover the initiatives if the current tax rate was maintained. Councilmember Kirkley said the City has faced some pretty significant challenges. He said Staff has provided an incredible response to what has been asked of them. He added that the Council made it clear to maintain the tax rate, and with the uncertainty of the future, the Staff proposed rates seem to be the most appropriate. There was no action required of Council on this item. 12. Conduct vote by the City Council to place a proposal to adopt a tax rate for Fiscal Year 2020 on the Tuesday, September 17, 2019, agenda. Councilmember Kirkley made a motion to place a proposal to adopt an ad valorem tax rate of $0.6598 ($0.5712 O&M , $0.0886 Debt Service) on the agenda for the September 17, 2019, Special Called City Council meeting. The motion was seconded by Mayor Pro Tern Carpenter and required a roll call vote. Councilmember Pearson said since he's been on Council he has taken a stand to not increase taxes until all other avenues have been exhausted. He said the Council is taking a prudent step by maintaining the tax rate, buying down the debt service while the opportunity is available, all while leaving sufficient cash balance for future debt service. Mayor Pro Tern Carpenter said he agrees with Mr. Pearson, and he added that Staff has worked hard to provide recommendations for making employee compensation more competitive, and he appreciates that. Present City Council For Against and Not Absent Voting Mayor Marion Grayson X Mayor Pro T em Wayne Carpenter X Councilmember David K. Leigh X Belton City Council Meeting August 13, 2019 - Page 12 Councilmember Craig Pearson X Councilmember Dan Kirkley X Councilmember Guy O'Banion X Councilmember John R. Holmes, Sr. X Councilmember Craig Pearson X 13. Call for two public hearings on a proposed tax rate for Fiscal Year 2020 to be held ori Tuesday, August 27, 2019, and Tuesday, September 10, 2019, at 5:30 p.m. at the Harris Community Center, 401 N. Alexander Street. Councilmember Kirkley made a motion to set Tuesday, August 27, 2019, and Tuesday, September 10, 2019, at 5:30 p.m., at the Harris Community Center, 401 N. Alexander, for the public hearings on the proposed ad valorem tax rate. The motion was seconded by Mayor Pro Tern Carpenter and carried unanimously upon a vote of 7-0. 14. Receive a presentation and discuss amendments to the City of Belton Fee and Rate Schedule for FY2020. City Clerk Amy Casey presented proposed changes to the FY2019 Fee and Rate Schedule. Highlighted changes include: • Eliminating Late Fees for Print Books and Audio Books • Increasing the cost of a Certificate of Occupancy • Adding Accessory Buildings and distinguishing between those with Electrical, Plumbing, Etc. and without • Adding a Fine for Working without a Building Permit • Increasing the Clean-Up Deposit for Park Events • Adding a section for Splash Pad Pavilion Rentals • Adding a Military Discount for Harris Center Rentals • Increasing the Residential Drainage Fee by 50 cents • Replacing the Emergency Medical Services rates with AMR contract rates • Adding Administrative Approval Fee for zoning variance requests • Adding the Historic Landmark Medallion Application Fee • Adding the Historic Placard Program Application Fee Councilmember Holmes asked if there was currently a fine for working without a Building Permit. Councilmember Pearson said a Stop Order is issued, and Mr. Listi added that the project is red tagged until a permit is issued. Mayor Grayson asked for clarification on the Splash Pad Rental. Director of Parks and Recreation Matt Bates assured the Council that the rental fee was for the rental of the pavilions in the area for certain time blocks. He added that there will still be public availability of the splash pads. Mrs. Grayson asked that the presentation and Fee Schedule be revised to clarify that point. Councilmember Holmes asked about the deposit, and Mr. Bates said that a $100 clean up deposit will be required. Belton City Council Meeting August 13, 2019 - Page 13 Mrs. Grayson added she would like to know if the $100 application fees for the Historic programs slows down the applications. No action was required of the Council on this item. 15. Receive a presentation on the FY2020 - FY2024 Strategic Plan and invite public input on September 10, 2019.' City Manager Sam Listi gave a presentation on the goals and objectives of the Strategic Plan (see Exhibit "B"). Mr. Listi stated the Strategic Plan will be considered for adoption at the September 17th Special Called City Council meeting in conjunction with budget adoption, and he recommended the Council receive public input on September 10, 2019. Councilmember Leigh said the future of the TIRZ is more than just boundaries. In speaking with Bell County Judge David Blackburn, he said there are several options available for the future of this TIRZ or creation of a new TIRZ. He said the language shown in the Strategic Plan needs some modification to emphasize all the options available. Mr. Leigh advocated that the Boards and Commissions training be more proactive in engaging the Council with the Boards and Commission, and suggested adding a Council liaison to each. Councilmember Pearson said the Strategic Plan process is still the best process he has ever seen. There being no further business, the Mayor adjourned the meeting at 7:48 p.m. ATTEST:  EXHIBIT "A" Fiscal Year 2020 CLEAN-UP BUDGET August 13, 2019  Fiscal Year 2020 GENERAL FUND Clean-up Budget REVENUES Ad Valorem Tax Revenue  Certified tax roll came in higher than estimated  Recommend increasing the M&O Rate to $0.5712  Net GF Ad Valorem revenue in excess of 6/25/19 presentation is $174,408 Sales Tax Revenue  Forecasted sales tax revenue increase driven by strong sales tax reports for the month of May  Sales tax revenue in excess of 6/25/19 presentation is $40,230  Additional revenue identified since June presentation: $214,638 PERSONNEL INITIATIVES: CIVIL SERVICE Compensation Study completed July 31, 2019  Existing pay scale is at 72-87% of market  Market is the average of Comparator & Competitor cities  Recommended guideposts of 90%, 95% and 100% of market pay  Revised pay scale proposal increases overall PD & FD salary expense by 6.48%  June proposal was for 5.01% Additional Civil Service changes as proposed in June  Include EMT certification pay in base pay for FD  Increase FD Master, Advanced and Intermediate certification pay  Remove Year 17 & 19 from Patrol Officer scale  Add FD Cadet position for potential future use  Revised FD Staffing to 24 FFs based on EMS outsourcing  Removed FD Internal Affairs Investigator certification pay from scale PERSONNEL INITIATIVES: CIVIL SERVICE Police Existing Scale FY20 Proposal Increase % of Market Patrol Officer Year 1 $ 42,001 $ 45,000 $ 2,999 93.2% Sgt Year 1 $ 55,109 $ 57,570 $ 2,461 90.8% Lieutenant Year 1 $ 63,129 $ 67,557 $ 4,429 93.1% Deputy Chief Year 1 $ 72,319 $ 79,278 $ 6,959 91.4% Fire Existing Scale FY20 Proposal Increase % of Market Firefighter/EMT Year 1 $ 40,428 $ 41,700 $ 1,272 93.2% Lieutenant Year 1 $ 49,838 $ 53,348 $ 3,509 91.3% Captain Year 1 $ 56,717 $ 62,603 $ 5,886 99.7% Assistant Fire Chief Year 1 $ 64,595 $ 73,464 $ 8,869 85.5%  2.5% increase for year steps  5.0% increase between rank steps  Proposal pay shown above does not include certification pay  Year 1 Police Sgt with Intermediate certification: $59,145  Year 1 Lt Paramedic with Intermediate certification: $60,973 PERSONNEL INITIATIVES - GENERAL SERVICES Implement ¾ Year Hire for Two Positions  Building Inspector & Recreation Coordinator  Allows departments to address needs sooner  Reduces fiscal impact of incorporating the ‘new’ costs of the positions for FY2021 budget Compensation Study  37 general services benchmark positions surveyed  Implementing 52 of the 64 position upgrades recommended  Approximately 10 employees will see immediate pay increases  Estimated cost: $2,500  Certain positions not upgraded due to maintaining alignment with like positions, recommended mid-point was above surveyed mid-point, and job duties different than position at other cities OVERALL PERSONNEL COST  “Burden” - City cost of personnel beyond salary  TMRS: 8.80%  FICA: 7.65%  Worker’s Compensation Insurance: 1.55% average  Total before insurance and unemployment tax: 18%  Current medical, dental & life insurance and unemployment tax cost: $7,300 per employee  $50,000 salary costs approximately $66,300 after burden  Increase to Civil Service pay scale: $251,911 (12 months)  Addition of Building Inspector & Recreation Coordinator: $77,197 (9 months) PREVENTATIVE STREET MAINTENANCE Crafting a sustainable plan  Three year funding goal set in FY 2018 of $250,000 per year is surpassed in FY2020 with $372,870 budgeted  FY 2020 budget can serve as a jumping-off point for a five year plan to reach $600,000 in annual, budgeted preventative street maintenance funding Street Maintenance Funding Plan Preventative Street Maintenance Goals $700,000 Budget Minimum Plan Year Budgeted Funding Expenditures $600,000 FY 20 $372,870 $535,000 $500,000 FY 21 $400,000 $550,000 $400,000 FY 22 $460,000 $565,000 $300,000 FY 23 $525,000 $580,000 $200,000 FY 24 $600,000 $600,000 $100,000 2020 funding TBI - $162,130 $0 2020 2021 2022 2023 2024 June Presentation: General Fund Budget Funding To Be Identified 2020 funding TBI - $285,000 FY 2020 PROPOSED - General Fund - Estimated Beginning Fund Balance $ 5,088,305 Proposed Revenues $ 14,937,319 Proposed Expenditures $ (14,937,305) Net Impact of Proposed Budget $ 14 Proposed Ending Fund Balance $ 5,088,319 Less: Minimum Balance (3 months O&M Budget) $ (3,529,231) Proposed Fund Balance in Excess of Minimum $ 1,559,088 REVENUES FY 2018 FY 2019 FY 2019 FY 2019 FY 2020 Change from 2019 Budget Description Actual O - Budget A - Budget Projected Proposed Amount % Ad Valorem Taxes $5,212,687 $5,504,872 $5,504,872 $5,525,185 $6,082,428 $577,556 10.49% Sales Tax $3,510,105 $3,632,000 $3,632,000 $3,579,702 $3,763,120 $131,120 3.61% Franchise $1,248,967 $1,202,000 $1,202,000 $1,259,446 $1,259,440 $57,440 4.78% Other Taxes $46,951 $40,000 $40,000 $50,000 $50,000 $10,000 25.00% Permits & Licenses $249,597 $230,400 $230,400 $278,250 $270,190 $39,790 17.27% Municipal Court $280,794 $275,900 $275,900 $367,150 $330,750 $54,850 19.88% Refuse Collection $1,411,822 $1,480,300 $1,550,300 $1,569,400 $1,642,560 $92,260 5.95% Ambulance $1,193,986 $750,000 $750,000* $500,000 $45,000 ($705,000) -94.00% Harris Rental Income $51,041 $50,000 $50,000 $70,000 $70,000 $20,000 40.00% Parks & Rec Income $39,064 $35,600 $35,600 $36,782 $36,780 $1,180 3.31% Code Enforcement $17,251 $4,200 $4,200 $8,125 $4,200 $0 0.00% Intergovernmental $345,804 $354,603 $354,603 $355,609 $355,610 $1,007 0.28% Other Financing Sources $255,333 $175,000 $175,000 $203,641 $175,000 $0 0.00% Contributions $0 $2,000 $2,000 $2,000 $2,000 $0 0.00% Miscellaneous $59,064 $39,900 $39,900 $47,000 $46,760 $6,860 17.19% Transfers $542,661 $617,000 $617,000 $599,944 $652,481 $35,481 5.75% Interest Income $95,676 $101,900 $101,900 $151,000 $151,000 $49,100 48.18% Total Revenues $14,560,803.81 $14,495,675 $14,565,675 $14,603,234 $14,937,319 $371,644 2.55% June Presentation: AV Tax: $5,908,020 Sales Tax: $3,722,890  EXPENDITURES FY 2018 FY 2019 FY 2019 FY 2019 FY 2020 Change from 2019 Budget Description Actual O - Budget A - Budget Projected Proposed Amount % Personnel $8,778,663 $9,340,584 $9,340,584 $9,340,584 $9,541,069 $200,485 2.15% Supplies $562,324 $532,039 $503,051 $492,889 $480,120 ($22,931) -4.56% Repairs & Maint $474,864 $514,159 $504,569 $504,500 $531,052 $26,483 5.25% Services $2,544,817 $2,779,196 $2,812,769 $2,789,975 $2,883,765 $70,996 2.52% Contingency $0 $150,000 $150,000 $150,000 $100,000 ($50,000) -33.33% Transfers $2,067,426 $1,056,718 $1,227,218 $1,230,218 $1,280,381 $53,163 4.33% Contributions $121,181 $122,953 $122,953 $123,325 $120,918 ($2,035) -1.66% Capital $13,061 $0 $10,005 $10,005 $0 ($10,005) -100.00% Strategic Plan $0 $0 $0 $0 $0 $0 0.00% Total Expenditures $14,562,336 $14,495,649 $14,671,149 $14,641,496 $14,937,305 $266,156 1.81% Other Supplies 1% 3% Repairs & Maint 4% June Presentation: Transfers 9% Personnel 64% Personnel: $9,449,300 Transfers: $1,157,511 Services 19% EXPENDITURES FY 2018 FY 2019 FY 2019 FY 2019 FY 2020 Change from 2019 Budget Description Actual O - Budget A - Budget Projected Proposed Amount % City Council $93,556 $74,563 $74,563 $74,776 $78,216 $3,653 4.90% Administration $476,842 $519,926 $519,926 $500,328 $531,692 $11,766 2.26% Finance $330,138 $344,407 $344,407 $342,354 $352,965 $8,558 2.48% Human Resources $186,431 $191,190 $191,190 $192,486 $196,061 $4,871 2.55% Muni Court $180,406 $192,790 $192,790 $197,206 $199,634 $6,844 3.55% Police $4,102,078 $4,189,378 $4,189,378 $4,178,949 $4,514,479 $325,101 7.76% Fire $3,128,487 $3,164,974 $3,164,974 $3,162,238 $2,750,411 ($414,563) -13.10% Info Technology $175,591 $235,168 $235,168 $235,123 $239,520 $4,352 1.85% Streets $1,419,175 $1,159,158 $1,159,158 $1,158,890 $1,312,094 $152,936 13.19% Parks & Recreation $1,156,824 $1,214,073 $1,214,073 $1,211,971 $1,326,713 $112,640 9.28% Planning $390,572 $399,376 $399,376 $397,716 $455,873 $56,497 14.15% Library $344,992 $360,539 $360,539 $360,417 $357,799 ($2,740) -0.76% Other $674,115 $447,953 $553,453* $553,825 $427,321 ($126,132) -22.79% Refuse $1,226,188 $1,301,076 $1,371,076* $1,375,410 $1,449,916 $78,840 5.75% Maintenance $531,179 $553,055 $553,055 $551,784 $593,656 $40,601 7.34% Engineering $145,762 $148,023 $148,023 $148,023 $150,955 $2,932 1.98% Total Expenditures $14,562,336 $14,495,649 $14,671,149 $14,641,496 $14,937,305 $266,156 1.81%  Fiscal Year 2020 DRAINAGE FUND Clean-up Budget FY 2020 PROPOSED - Drainage Fund - Estimated Beginning Fund Balance $ 223,311 Proposed Revenues $ 539,472 Proposed Expenditures $ (570,812) Net Impact of Proposed Budget $ (31,340) Proposed Ending Fund Balance $ 191,971 Less: Minimum Balance (3 months O&M Budget) $ (82,294) Less: Annual Debt Service $ (25,607) Proposed Fund Balance in Excess of Minimum $ 84,070 REVENUES FY 2018 FY 2019 FY 2019 FY 2020 Change from 2019 Budget Description Actual Budget Projected Proposed Amount % Drainage Fees $ 452,742 $ 496,241 $ 496,800 $ 533,593 $ 37,352 7.53% Misc. Income $ 43,653 $ - $ - $ - $ - 0.00% Interest Income $ 4,110 $ 4,362 $ 5,879 $ 5,879 $ 1,517 34.78% Total Revenues $500,505 $500,603 $502,679 $539,472 $38,869 7.76%  Proposing drainage fee increase from $4.50 per month to $5.00 per month  The residential drainage fee was increased to $4.00 per month in FY 2018 and $4.50 per month in FY 2019  Prior to FY 2018, the residential drainage fee had been at $3.00 per month since inception in FY 2008  Each $0.50 increase in the monthly residential drainage fee generates $32,500 in annual drainage fee revenue AREA DRAINAGE FEES Rate Belton Cove Georgetown Harker Heights Killeen Temple Residential $ 5.00 $ 6.00 $ 6.50 $ 6.00 $ 6.00 $ 6.00 Non-Residential Min $ 10.00 $ 6.00 $ 6.50 $ 7.20 $ 8.30 $ 12.00 Max $ 200.00 $ 60.00 $ 306.59 $ 350.00 Other $17.86/acre $6.50/2,808 sf EXPENDITURES FY 2018 FY 2019 FY 2019 FY 2020 Change from 2019 Budget Description Actual Budget Projected Proposed Amount % Personnel $ 193,040 $ 199,692 $ 199,692 $ 250,108 $ 50,416 25.25% Supplies $ 21,684 $ 15,745 $ 15,218 $ 19,430 $ 3,685 23.40% Repairs & Maint $ 22,019 $ 41,304 $ 29,390 $ 39,890 $ (1,414) -3.42% Services $ 4,214 $ 20,196 $ 16,206 $ 19,747 $ (449) -2.22% Debt Service $ 25,301 $ 25,472 $ 25,459 $ 25,607 $ 135 0.53% Capital $ 176,682 $ - $ - $ - $ - Capital Replacement $ 43,600 $ - $ - $ 8,530 $ 8,530 Capital Projects $ 69,900 $ 230,000 $ 230,000 $ 207,500 $ (22,500) -9.78% Total Expenditures $556,440 $532,409 $515,965 $570,812 $38,403 7.21% DRAINAGE FUND FORECAST FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Projected Proposed Forecasted Forecasted Forecasted Forecasted Beginning Fund Balance $ 236,597 $ 223,311 $ 191,971 $ 189,168 $ 187,111 $ 179,791 Drainage Fees $ 496,800 $ 533,593 $ 546,933 $ 560,606 $ 574,622 $ 588,987 Other Misc. Income $ 5,879 $ 5,879 $ 5,879 $ 5,879 $ 5,879 $ 5,894 Total Revenue $ 502,679 $ 539,472 $ 552,812 $ 566,485 $ 580,501 $ 594,881 Personnel $ 199,692 $ 250,108 $ 260,112 $ 270,517 $ 281,337 $ 292,591 Supplies $ 15,218 $ 19,430 $ 20,013 $ 20,613 $ 21,232 $ 21,869 Repairs & Maintenance $ 29,390 $ 39,890 $ 41,087 $ 42,319 $ 43,589 $ 44,897 Services $ 16,206 $ 19,747 $ 20,339 $ 20,950 $ 21,578 $ 22,225 Strategic Plan $ - $ - $ - $ - $ 5,000 $ - Total Operating Expenditures $ 260,506 $ 329,175 $ 341,551 $ 354,399 $ 372,736 $ 381,582 Debt Service $ 25,459 $ 25,607 $ 25,708 $ 24,936 $ 25,002 $ 25,032 Capital $ - $ - Capital Equipment Replacement Plan $ - $ 8,530 $ 28,356 $ 29,207 $ 30,083 $ 30,985 Capital Projects Transfer $ 230,000 $ 207,500 $ 160,000 $ 160,000 $ 160,000 $ 160,000 Total Expenditures $ 515,965 $ 570,812 $ 555,615 $ 568,542 $ 587,821 $ 597,599 Fund Balance Impact $ (13,286) $ (31,340) $ (2,803) $ (2,056) $ (7,321) $ (2,718) Ending Fund Balance $ 223,311 $ 191,971 $ 189,168 $ 187,111 $ 179,791 $ 177,073 Less: Minimum Balance ( 3 months O&M Budget) $ 65,878 $ 82,294 $ 85,388 $ 88,600 $ 93,184 $ 95,395 Less: Minimum Balance (Debt Service) $ 25,459 $ 25,607 $ 25,708 $ 24,936 $ 25,002 $ 25,032 Projected Fund Balance in Excess of Minimum $ 131,974 $ 84,070 $ 78,072 $ 73,575 $ 61,605 $ 56,646 CAPITAL PROJECTS FORECAST Funding: FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Beginning Balance $ 73,617 $ 240,013 $ 24,013 $ 60,513 $ 97,013 $ 208,513 Contributions Transfer from Drainage Fund $ 230,000 $ 207,500 $ 160,000 $ 160,000 $ 160,000 $ 160,000 Interest Income $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 Total Funding $ 231,500 $ 209,000 $ 161,500 $ 161,500 $ 161,500 $ 161,500 Expenditures: FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Completed Projects Engineering Studies - Red Rock $ 1,340 Preliminary and Final Design - Mesquite Road $ 9,925 Engineering Studies - Liberty Hill $ 17,439 Engineering Studies - Nolan Creek Floodway $ 16,500 MS4 Permit Plan $ 19,900 Regional Nolan Creek Study cost-share $ - Future Projects Liberty Hill Drainage Project $ 25,000 $ 500,000 Mequite Road Drainage Project Construction $ 400,000 Blair & 4th Drainage Project $ 125,000 $ 125,000 Engineering Studies - Mitchell Branch $ 50,000 Total Expenditures/Commitments $ 65,104 $ 425,000 $ 125,000 $ 125,000 $ 50,000 $ 500,000 Ending Balance $ 240,013 $ 24,013 $ 60,513 $ 97,013 $ 208,513 $ (129,987) Project Color Key Drainage Improvement Project Engineering Study System or Regional Master Plan Development Agreement June Presentation Ending Balance FY24: ($292,487)  Fiscal Year 2020 HOTEL-MOTEL FUND Clean-up Budget EXPENDITURES FY 2018 FY 2019 FY 2019 FY 2020 Change from 2019 Budget Description Actual Budget Projected Proposed Amount % Personnel $ 27,206 $ 29,016 $ 29,016 $ 30,105 $ 1,089 3.75% Supplies $ 15 $ 475 $ 400 $ 300 $ (175) -36.84% Repairs & Maint $ - $ 775 $ - $ - $ (775) -100.00% Services $ 7,520 $ 58,247 $ 51,195 $ 56,251 $ (1,996) -3.43% Sponsorships $ 24,739 $ 57,000 $ 49,792 $ 52,780 $ (4,220) -7.40% Visitor Center Support $ - $ - $ 7,200 $ 12,500 $ 12,500 - Bell County Expo $ 9,487 $ 9,500 $ 9,508 $ 10,000 $ 500 5.26% City Support $ 2,464 $ 3,500 $ 3,500 $ 3,500 $ - 0.00% Historic Preservation $ 1,050 $ - $ 725 $ 120,000 $ 120,000 - Transfers $ 10,000 $ 15,000 $ 15,000 $ 25,000 $ 10,000 66.67% Total Expenditures $82,481 $ 173,513 $ 166,336 $ 310,436 $ 136,923 78.91%  FY 2020 Initiatives  Provide financial support to Belton Chamber Visitor Center (50%) June Presentation: $17,280  Enhance Christmas on the Chisholm Trail by making it a multi-day event that will attract out of town guests  Restore Belton’s Historic Standpipe and transform the Standpipe site into a destination for out of town visitors and feature for Downtown Belton  Fiscal Year 2020 DEBT SERVICE FUND Clean-up Budget FY 2019 PROJECTION - Debt Service Fund - Beginning Fund Balance $ 306,462 Projected Revenues $ 1,094,928 Projected Expenditures $ (1,173,863) Net Impact of Projected Budget $ (78,935) Projected Ending Fund Balance $ 227,527 * Projected Revenues include additional FY 2019 transfer of $45,000 from General Fund – no action at this meeting FY 2020 PROPOSED - Debt Service Fund - Projected Beginning Fund Balance $ 227,527 Proposed Revenues $ 956,110 Proposed Expenditures $ (1,183,110) Net Impact of Proposed Budget $ (227,000) Proposed Ending Fund Balance $ 527 REVENUES AND EXPENDITURES FY 2018 FY 2019 FY 2019 FY 2020 Change from 2019 Budget Description Actual Budget Projected Proposed Amount % Ad Valorem Taxes $ 990,961 $ 922,417 $ 926,885 $ 942,472 $ 20,055 2.17% Bond Proceeds $ 1,182 $ - $ - $ - $ - Transfer from General Fund $ 200,000 $ - $ 150,500 $ - $ - Interest Income $ 10,379 $ 10,000 $ 17,543 $ 13,638 $ 3,638 36.38% Total Revenues $1,202,522 $932,417 $1,094,928 $956,110 $23,693 2.54% FY 2018 FY 2019 FY 2019 FY 2020 Change from 2019 Budget Description Actual Budget Projected Proposed Amount % Bond Principal $ 705,538 $ 759,250 $ 759,250 $ 792,963 $ 33,713 4.44% Bond Interest $ 356,506 $ 409,467 $ 409,467 $ 382,447 $ (27,020) -6.60% Bond Paying Agent Fees $ 341 $ 1,150 $ 1,150 $ 1,150 $ - 0.00% Arbitrage Rebate Calc Fees $ 4,274 $ 6,550 $ 4,509 $ 6,550 $ - 0.00% Bond Issue Costs $ (659) $ - $ (513) $ - $ - Total Expenditures $1,066,000 $1,176,417 $1,173,863 $1,183,110 $6,693 0.57% DEBT SERVICE FUND PROJECTIONS $1,400,000 $1,200,000 June Presentation: $1,000,000 $196,797  Use of Fund Balance over 5 years: $800,000 $303,373 Fund Balance/Transfer Needed $600,000  Rev vs. Exp Gap: $179,500 Revenue Expenditures $400,000  Additional Funding needed in FY21: $144,000 $200,000 $526,379 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 -$200,000 -$400,000 $196,270 DEBT SERVICE TAX RATE HISTORY $0.1400 $0.1266 $0.1200 $0.1053 $0.1156 $0.1000 $0.1110 $0.0800 $0.0886 $0.0600 $0.0400 $0.0200 $0.0000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020  Fiscal Year 2020 TAX INCREMENT REINVESTMENT ZONE Clean-up Budget  - TIRZ Fund - Projected Beginning Fund Balance $ 263,405 Projected Revenues FY 2020 City $ 1,203,433 County $ 768,242 TIRZ Operating Fund Interest $ 14,320 Total Revenues $ 1,985,995 Proposed Expenditures: Development Retail Development Coordinator $ 48,731 Debt Service - Principal, Interest & Fees Principal, Interest, and Fees $ 418,315 Downtown Revitalization: Downtown Façade Grants $65.1% 100,000 Other Public Improvements: Personnel Heritage Park $ 1,100,000 South Belton Shared Use Path $ 74,000 Standpipe Restoration Project $ 120,000 Library Enhancements $ 100,000 Total Expenditures $ (1,961,046) Preliminary Presentation: Net Impact of Budget on Fund Balance $ 24,949 Net Impact: ($141,739) Projected Ending Fund Balance $ 288,354 Projected Ending Fund Balance: $121,666 REVENUES FY 2018 FY 2019 FY 2019 FY 2020 Change from 2019 Budget Account Name Actual Budget Projected Proposed Amount % City TIRZ Taxes $ 806,822 $ 877,625 $ 901,068 $ 1,203,433 $ 325,808 37.12% County TIRZ Taxes $ 514,067 $ 560,254 $ 573,994 $ 768,242 $ 207,988 37.12% Interest Income $ 13,551 $ 10,550 $ 13,560 $ 14,320 $ 3,770 35.73% Total Revenues $ 1,334,440 $ 1,448,429 $ 1,488,622 $ 1,985,995 $ 537,566 37.11% $2,250,000 $2,050,000 $1,850,000 $1,650,000 $1,450,000 $1,250,000 $1,050,000 $850,000 $650,000 TIRZ Study $450,000 Actual Taxes $250,000 $50,000 Fiscal Year  EXHIBIT "B" FY 2020-2024 Strategic Plan Update City Council Meeting August 13, 2019  Summary • Belton’s Strategic Plan has been updated for the next five years. • Plan reflects achievements in 2019, and will guide the Community into the future, maintaining the existing six (6) Goal categories: • Governance • Economic Development • Public Safety • Connectivity • Quality of Life • Parks/Natural Beauty • Belton’s updated Strategic Plan remains substantial, yet realistic in scope. • A Scorecard reviews twenty (20) Goals for FY 2019, and indicates status of goals, many of which are underway, and multi-year in scope. • 19 Goals are presented for FY 2020 Priority 1 Goal Scorecard: FY 2019 Goal Category Strategic Plan Goal Funding Coordinator Status a Implement Balanced Tax/Fee Schedules Staff Resources Dir. of Finance 2 Address TIRZ Boundary and Strategic Funding b Objectives Staff Resources City Manager 2 Implement Comprehensive Plan Elements and Initiate Sunset Review of Design Standards, Director of c Requirements Staff Resources 2 Planning 1 Governance Work with State/Federal Legislators on Local d Priorities Staff Resources City Manager 2 Evaluate Employee Compensation Plan including TMRS retirement benefits – Directors of e Staff Resources 2 Contribution Rate, Updated Service Credit, Finance/HR COLA Identify Strategic Needs of the Police a Department Staff Resources Police Chief 2 2 Public Safety Implement Changes in EMS Service and Identify Strategic Needs of the Fire Dept. Fire Chief/ b Staff Resources 2 City Manager Priority 1 Goal Scorecard: FY 2019 (Continued) Goal Category Strategic Plan Goal Funding Coordinator Status Implement Annual Street Maintenance Director of a $550,000 2 Program Public Works Implement Miscellaneous Infrastructure Quality of Enhancements – Water/Sewer/Drainage Director of 3 b Staff Resources 2 Life Public Works Conduct Library User Survey and Determine ACM/Dir. of c Next Steps Staff Resources 2 Library Srvcs. Implement Downtown Redevelopment Plan Directors of a Staff Resources 2 PW/Planning Build South IH 35 Water/Sewer Infra- Director of Economic b structure CO Bonds; BEDC 2 Public Works 4 Developmen Coordinate City/ BEDC Efforts to Enhance City Manager/ t c Staff Resources 2 Economic Development BEDC Exec. Dir. Retail Dev. d Facilitate Retail, Tourism Strategies Staff Resources 2 Coordinator Priority 1 Goal Scorecard: FY 2019 (Continued) Goal Category Strategic Plan Goal Funding Coordinator Status Construct Hike/Bike Trail from University TxDOT Grant Directors of a Drive, north and west, to Sparta 1 Grant Match PW/Planning Design S. IH 35 Hike/Bike Trail from Park & TxDOT Grant Director of b Ride, south to FM 436 2 Grant Match Public Works 5 Connectivity Coordinate Repair/Replacement of Central City Manager/ c Ave. Bridge in Yettie Polk Park Grant Match 2 Dir. of PW City, TxDOT, KTMPO, Bell d Continue Planning for Lake to Lake Rd. City Manager 2 County, Private Developers Implement Parks & Recreation Master ACM/Director a Plan Staff Resources 2 of Parks & Rec. Parks/Natura 6 l Beauty Design/Construct Phased Improvements in ACM/Directors b Heritage Park $1,000,000 2 of PW/P&R  City of Belton, Texas Strategic Plan FY 2020 Year 1: Three Year Action Plan Priority 1 Goals: FY 2020 Goal Categories Goals a) Conduct Comprehensive Strategic Plan Update (2020) b) Reassess and Determine Growth Strategy c) Implement Balanced Tax/Fee Schedules d) Address TIRZ Boundary Strategic Objectives 1. Governance e) Evaluate Employee Compensation Plan f) Conduct Charter Review g) Conduct Board Training/Coordination Sessions h) Enhance Belton’s Customer Service/Citizen Engagement a) Address Strategic Needs for Police Department b) Address Strategic Needs for Fire Department, and Analyze 2. Public Safety Outsourced EMS a) Address Infrastructure/Capital Equipment Needs: 1. Street Maintenance 2. Water/Sewer 3. Quality of Life 3. Storm Drainage 4. Capital Equipment Replacement b) Plan for Library Enhancements  City of Belton, Texas Strategic Plan FY 2020 Year 1: Three Year Action Plan Priority 1 Goals: FY 2020 (Continued) Goal Categories Goals a) Implement Downtown Redevelopment Plan, including 6th Avenue Gateway Corridor b) Complete IH 35 and IH 14 Sewer/Water Infrastructure 4. Economic Development c) Coordinate City/BEDC efforts to Maximize Project Success d) Update Retail, Tourism Strategies a) Coordinate Projects with TxDOT: 1. Loop 121 Construction 2. FM 93 Design/ROW 3. Repair/Replacement of Central Avenue Bridge in Yettie Polk Park 5. Connectivity 4. IH 14 Alignment Through/East of Belton 5. Continue Planning for Lake to Lake Road b) Begin IH 35 Hike/Bike Trail from Park & Ride to FM 436 a) Continue Enhancements to Park System including 6. Parks / Natural Beauty Heritage Park and Standpipe Park  Revised or New Goals for FY 2020 Governance – Policy Emphasis 1a) Conduct Comprehensive Strategic Plan Update (2020): Reset Vision 1b) Reassess and Determine Growth Strategy: Focus internally 1e) Evaluate Employee Compensation Plan: Improve competitiveness annually 1f) Conduct Charter Review: Initiate Charter Review 1g) Conduct Board Training/Coordination Sessions: Conduct orientation, ongoing training, meetings with Council 1h) Enhance Belton’s Customer Service/Citizen Engagement: Achieve/maintain servant leadership model Public Safety – Transition Year for EMS 2b) Address Strategic Needs for Fire Department, and Analyze Outsourced EMS: Evaluate first year Outsourced EMS Service Revised or New Goals for FY 2020 Quality of Life – Maintain/Enhance 3a) Address Infrastructure/Capital Equipment Needs: • Street Maintenance • Water/Sewer • Storm Drainage • Capital Equipment Replacement Combined infrastructure/capital needs 3b) Plan for Library Enhancements: Implement Needs Assessment recommendations – space, technology, collections, exterior Economic Development – Recognize Opportunities 4a) Implement Downtown Redevelopment Plan, including 6th Avenue Gateway Corridor: Expand Downtown Revitalization to 6th Avenue 4b) Coordinate City/BEDC efforts to Maximize Project Success: Continue infrastructure, offices, Rockwool, Business Park investment Revised or New Goals for FY 2020 Connectivity – Monitor/Coordinate 5a) Coordinate Projects with TxDOT: Combined TxDOT items • Loop 121 Construction • FM 93 Design/ROW • Repair/Replacement of Central Avenue Bridge in Yettie Polk Park • IH 14 Alignment Through/East of Belton • Continue Planning for Lake to Lake Road 5a-1) Continue long term planning for Lake to Lake Road Project Revised or New Goals for FY 2020 Parks & Natural Beauty – Provide Enhancements 6a) Continue Enhancements to Park System including Heritage Park and Standpipe Park: Build street (24th) and utilities for Heritage Park and develop Heritage Park Master Plan; begin Standpipe Park development  City of Belton, Texas Strategic Plan FY 2020 Year 2: Three Year Action Plan Priority 1 Goals: FY 2021 Goal Categories Goals a) Update Comprehensive Plan and Parks Master Plan at 5 Year Anniversary b) Implement TIRZ and Parks Master Plan Boundary Strategic Objectives c) Implement Balanced Tax/Fee Schedule 1. Governance d) Evaluate Employee Compensation Plan e) Evaluate Belton’s Long-Term Future Water Rights for Sufficiency f) Conduct Board Training/Coordination Sessions a) Analyze PD Facility Needs and Municipal Court 2. Public Safety b) Analyze Fire Department Facility Needs a) Address Infrastructure/Capital Equipment Needs: • Street Maintenance • Water/Sewer 3. Quality of Life • Storm Drainage • Capital Equipment Replacement a) Keep Downtown Belton Vital b) Establish Façade Grants for 6th Avenue Properties c) Coordinate City/BEDC Efforts to Maximize Project Success 4. Economic Development d) Develop IH 35, IH 14 Corridors e) Implement Retail and Tourism Strategies a) Coordinate Projects with TxDOT • Loop 121 Construction • FM 93 Design/ROW • Repair/Replacement of Central Avenue Bridge in Yettie 5. Connectivity Polk Park • IH 14 Alignment Through/East of Belton • Continue Planning for Lake to Lake Road b) Complete IH 35 Hike/Bike Trail from Park & Ride to FM 436 a) Continue Enhancements to Park System at Heritage Park and 6. Parks / Natural Beauty Standpipe Park  City of Belton, Texas Strategic Plan FY 2020 Year 3: Three Year Action Plan Priority 1 Goals: FY 2022 Goal Categories Goals a) Update Comprehensive Plan and Parks Master Plan at 5 Year Anniversary b) Implement TIRZ and Parks Master Plan Boundary Strategic Objectives c) Implement Balanced Tax/Fee Schedule 1. Governance d) Evaluate Employee Compensation Plan e) Evaluate Belton’s Long-Term Future Water Rights for Sufficiency f) Conduct Board Training/Coordination Sessions a) Analyze PD Facility Needs and Municipal Court 2. Public Safety b) Analyze Fire Department Facility Needs a) Address Infrastructure/Capital Equipment Needs: • Street Maintenance • Water/Sewer 3. Quality of Life • Storm Drainage • Capital Equipment Replacement a) Keep Downtown Belton Vital b) Establish Façade Grants for 6th Avenue Properties c) Coordinate City/BEDC Efforts to Maximize Project Success 4. Economic Development d) Develop IH 35, IH 14 Corridors e) Implement Retail and Tourism Strategies a) Coordinate Projects with TxDOT • Loop 121 Construction • FM 93 Design/ROW • Repair/Replacement of Central Avenue Bridge in Yettie 5. Connectivity Polk Park • IH 14 Alignment Through/East of Belton • Continue Planning for Lake to Lake Road b) Complete IH 35 Hike/Bike Trail from Park & Ride to FM 436 a) Continue Enhancements to Park System at Heritage Park and 6. Parks / Natural Beauty Standpipe Park  City of Belton, Texas Strategic Plan FY 2020 Year 4: Three Year Action Plan Priority 1 Goals: FY 2023 Goal Categories Goals a) Implement Updated Strategic Plan b) Implement Plan for TIRZ Boundary Strategic Objectives (expires in 2024) 1. Governance c) Implement Balanced Tax/Fee Schedule d) Evaluate Employee Compensation Plan e) Conduct Charter Review (required in 2025) if needed a) Implement updated Police Department Strategic Plan 2. Public Safety b) Implement updated Fire Department Strategic Plan a) Address Infrastructure/Capital Equipment Needs: • Street Maintenance • Water/Sewer 3. Quality of Life • Storm Drainage • Capital Equipment Replacement b) Implement Improvements to South Main Street a) Continue Downtown Enhancements 4. Economic Development b) Continue Development of BEDC Properties c) Continue Development of IH 35, IH 14 Corridors a) Coordinate Projects with TxDOT • Loop 121 Construction • FM 93 Design/ROW 5. Connectivity • Repair/Replacement of Central Avenue Bridge in Yettie Polk Park • IH 14 Alignment Through/East of Belton • Continue Planning for Lake to Lake Road a) Implement Updated Parks Plan 6. Parks / Natural Beauty b) Enhance Nolan Creek Recreational Improvements  City of Belton, Texas Strategic Plan FY 2020 Year 5: Three Year Action Plan Priority 1 Goals: FY 2024 Goal Categories Goals a) Conduct Comprehensive Strategic Plan Update (2025) b) Reassess Growth Strategy c) Implement Balanced Tax/Fee Schedule 1. Governance d) Evaluate Employee Compensation Plan e) Implement Plan for TIRZ Boundary Strategic Objectives (expires in 2024) a) Address Strategic Needs of Police Department 2. Public Safety b) Address Strategic Needs of Fire Department a) Address Infrastructure/Capital Equipment Needs: • Street Maintenance • Water/Sewer 3. Quality of Life • Storm Drainage • Capital Equipment Replacement 4. Economic a) Keep Downtown Vital Development b) Enhance IH 35 and IH 14 Corridor Development c) Coordinate City/BEDC Efforts to Maximize Project Success a) Coordinate Projects with TxDOT • Loop 121 Construction • FM 93 Design/ROW • Repair/Replacement of Central Avenue Bridge in Yettie 5. Connectivity Polk Park • IH 14 Alignment Through/East of Belton • Continue Planning for Lake to Lake Road • Other City Priorities 6. Parks / Natural Beauty a) Update Parks Master Plan at 5 Year Anniversary  FY 2020-2024 Strategic Plan Adoption • The Strategic Plan Update will be placed on City website for public review and comment following the August 13th meeting. • We invite public comments at the City Council meeting on September 10, 2019. • At the September 17th Council meeting, we will recommend adoption of an ordinance approving the Strategic Plan Update for FY 2020-2024 to guide the City during the next five years.