City Council

Belton City Council Meeting June 9, 2020 - 5:30 P.M. The Belton City Council met in an in-person/virtual meeting via Zoom meeting due to the COVID-19 Public Health Emergency that has been declared by Governor Greg Abbott, Bell County Judge David Blackburn and Belton Mayor Marion Grayson. Members present included Mayor Marion Grayson, Mayor Pro Tern Wayne Carpenter (Zoom) and Councilmembers David K. Leigh, John R. Holmes, Sr., Craig Pearson , Guy O'Banion and Dan Kirkley. Staff present included Sam Listi, John Messer, Amy Casey, Gene Ellis, Mike Rodgers, Susan Allamon, Charlotte Walker, Cheryl Maxwell, Paul Romer, Matt Bates, Chris Brown , Cynthia Hernandez (Zoom) and Angellia Points (Zoom). The Pledge of Allegiance to the U.S. Flag was led by Councilmember David K. Leigh and the Pledge of Allegiance to the Texas Flag was led by Interim Fire Chief Wes Gilbreath. The Invocation was given by Councilmember Craig Pearson . 1. Call to order. Mayor Grayson called the meeting to order at 5:32 p.m . 2. Public Comments. (Audio 1:29) There were no public comments. 3. Proclamation: Gary Busby Day - June 9, 2020. (Audio 1:52) Jay Taggart was present to receive the proclamation on Mr. Busby's behalf. 4. Present two $2,000 Scholarships from Waste Management, Inc. to Belton ISO graduating seniors Mycah Page and Madden Baggerly. (Audio 9:33) Ms. Page and Ms. Baggerly were present via Zoom to receive the scholarships. Consent Agenda (Audio 17:45) Items 5-11 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. 5. Consider minutes of May 26, 2020, City Council Meeting. 6. Consider reappointments to the following Boards/Commissions: A. Parks Board - Josh Pearson and Daniel Bucher B. Zoning Board of Adjustment and Appeals - Mat Naegele and Nelson Hutchison Belton City Council Meeting June 9, 2020 - Page 2 7. Consider authorizing acquisition of a 0.37 acre tract of land, including forgiveness of liens, located at the northeast corner of E. 2nd Avenue and N. Head Street. 8. Consider adopting a resolution authorizing the submittal of a grant application to Coronavirus Emergency Supplemental Funding Program for the Police Department. 9. Consider a resolution authorizing the City Manager to enter into an illumination agreement with the Texas Department of Transportation for lighting along Loop 121 as part of the Loop 121 Widening Project. 10. Consider authorizing the Executive Director of the Belton Economic Development Corporation to execute a contract for the sale of property located at 117 N. East Street. 11 . Consider adopting an ordinance reducing the speed limit from 65 MPH to 55 MPH on US190/IH-14 in Belton City Limits between Loop 121 and IH-35 during construction of the US190/IH-14 Widening Project. Upon a motion for approval by Councilmember Holmes, and a second by Councilmember Pearson , the Consent Agenda was unanimously approved upon a vote of 7-0. FY 2021 Budget 12. Conduct a work session on the FY 2021 Budget for the following funds: (Audio 20:12) A. General Fund 8. Debt Service Fund C. Hotel/Motel Fund D. TIRZ Fund E. IT Fund F. Building Maintenance Fund Director of Finance Mike Rodgers presented a preliminary draft of the FY2021 budget as shown in Exhibit "A". No action was required of the Council on this item. There being no further business, the Mayor adjourned the meeting at 7:22 p.m. ~ o , -- - Belton City Council Meeting June 9, 2020 - Page 3 ATTEST:  EXHIBIT "A" FY21 Budget Workshop June 9, 2020 Overview Comments by: Sam A. Listi City Manager Overview Comments • Council input on May 12, 2020 led us to modify budget assumptions for FY ’21 due to wide ranging effects of COVID-19 • Revenue projections from Property Taxes and from Sales Taxes have been reduced • The Property Tax Rate is proposed to be reduced by nearly 1¢, from $.06598 to $.06500 • The budget will continue to fund multi-year Capital Equipment Replacement Fund 2 1  Overview Comments • Two internal service funds – allocating costs for IT and Building Maintenance – will be established • The resulting budget will hold expenditures flat, meeting ESSENTIAL SERVICES with increases limited to: – Civil Service Step Increase – Health Insurance Increases (7%) • Items not included in proposed budget include: – Annual Street Maintenance Funding – New Personnel – Merit Pay and TMRS Adjustment – Quality of Life Improvements 3 Overview Comments • With the hope actual revenue conditions will exceed these expectations, we will develop a list of prioritized unfunded items for a budget amendment in early 2021. • Since Department Goals were presented at Strategic Plan Retreat just a few months ago, and given an extremely lean budget proposal, Department Heads will forego making budget presentations, but are available for questions. 4 2  FY21 Budget Workshop June 9, 2020 Presented by: Michael Rodgers, CPA Director of Finance Funds To Be Discussed • General Fund • Debt Service Fund • Information Technology Fund • Building Maintenance Fund • Hotel / Motel Fund • TIRZ Fund 6 3  General Fund Forecast for FY20 FY20 Year-End Budget Estimate Revenue $ 14,937,319 $ 14,735,156 Expenditures (14,937,305) (14,289,740) Incr/(Decr) to Reserve $ 14 $ 445,416 7 Forecast for FY20 • A sharp drop in sales tax revenue as a result of COVID-19 creates a revenue deficit in the General Fund of $202,000 • Expenditures may be under budget by $647,000 due to savings from position vacancies, insurance, fuel, and travel • Reserves could increase by approximately $450,000 at the end of FY20 8 4  General Fund FY21 Statement of Fund Balance Projected Spendable Balance, Sept 30, 2020 $ 5,523,322 Increases/(Decreases) to Fund Balance: FY21 Revenue 14,917,392 FY21 Expenditures (15,018,487) Net Increase/(Decrease) to Fund Balance (101,095) Spendable Fund Balance, Sept 30, 2021 $ 5,422,227 9 Status of General Fund Reserves FY14 to FY21 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2014 2015 2016 2017 2018 2019 2020 2021 Unassigned Reserve Balance Minimum Reserve Requirement 10 5  Budget to Budget Comparison by Revenue Category General Fund FY20 FY21 Increase / Revenue Category Budget Budget (Decrease) Property Tax $ 6,082,428 $ 6,618,072 $ 535,644 Sales Tax 3,763,120 3,318,162 (444,958) Franchise & Other Tax 1,309,440 1,276,149 (33,291) Permit Fees 270,190 246,628 (23,562) Court Fines & Fees 330,750 302,550 (28,200) Charges for Service 1,808,540 1,961,269 152,729 Miscellaneous 720,370 659,434 (60,936) Transfers 652,481 535,128 (117,353) Total Revenue $14,937,319 $14,917,392 $ (19,927) 11 FY21 General Fund Revenue Property tax $ 6,618,072 Sales tax 3,318,162 Franchise fees, 9% Service charges 1,961,269 Property tax, 44% Franchise fees 1,276,149 Service charges, Miscellaneous 659,434 13% Transfers 535,128 Sales tax, 22% Court fines & fees 302,550 Permits 246,628 Property tax Franchise fees Sales tax Miscellaneous Service charges Transfers Total $14,917,392 Court fines Permits 12 6  FY21 Property Tax Revenue • Preliminary adjusted taxable value increases by 14% to $1,439,669,908 • Preliminary proposed property tax rate is 65 cents compared to 65.98 cents for the current year • Revenue may increase by $535,000 with about half of that coming from new properties that were added to the tax roll 13 Property Tax History FY14 to FY21 FY O&M TIRZ Debt $10,000,000 $9,000,000 2014 $4,188,447 $ 552,851 $ 846,097 $8,000,000 $7,000,000 2015 $4,396,492 $ 582,394 $ 947,536 $6,000,000 2016 $4,613,688 $ 670,769 $1,090,922 $5,000,000 $4,000,000 2017 $4,816,716 $ 728,568 $1,074,343 $3,000,000 $2,000,000 2018 $5,212,685 $ 806,821 $ 990,959 $1,000,000 2019 $5,568,951 $ 901,067 $ 934,984 $0 2020Projected $6,116,712 $1,155,204 $ 929,461 2021Budget $6,618,072 $1,630,639 $1,232,711 O&M TIRZ Debt 14 7  Components of a Tax Bill Belton ISD 1.46510 City of Belton 0.65000 Bell County 0.42080 Bell County Road 0.02920 BISD, 57% Clearwater UWCD 0.00357 Belton, 25% Total 2.56867 City of Belton preliminary tax rate for BISD Belton next year versus others for current year Bell County Bell County Road Clearwater UWCD Some properties are also subject to a Bell County WCID #6 rate of $0.0297 15 FY21 Sales Tax Revenue • Revenue falls by $445,000 (12%) when compared to the FY20 Annual Budget due to COVID-related closures and economic slowdown • FY21 Annual Budget reflects 75% of pre- COVID revenue for the entire fiscal year 16 8  Sales Tax History FY14 to FY21 $3,800,000 FY Revenue $3,600,000 2014 $3,069,314 $3,400,000 2015 $3,205,410 $3,200,000 2016 $3,155,659 $3,000,000 2017 $3,276,982 $2,800,000 2018 $3,510,104 $2,600,000 2019 $3,573,712 $2,400,000 $2,200,000 2020Projected $3,318,162 $2,000,000 2021Budget $3,318,162 2014 2015 2016 2017 2018 2019 2020 2021 17 FY21 Other General Fund Revenue • Charges for Service increases by $152,000 due to the growing number of refuse collection customers • Transfers from other funds change by $117,000 with the separation of building maintenance from the General Fund 18 9  Example of an Internal Service Fund’s Effect Upon General Fund Expenditures General Fund Info Tech Fund General Fund & Utility Fund & Utility Fund • Remove Info • Add all costs • Add Info Tech Tech Division associated with Services account • Remove information to various computer technology divisions to pay maintenance • Allocate for services costs from all personnel, provided by the divisions equipment, and Info Tech Fund • Remove Transfer software expense and for future to IT • Charge services equipment Replacement back to specific replacement from all divisions departments 19 FY21 General Fund Expenditures by Function Solid General Waste, Govt, Function FY21 Budget 10% 12% General government $ 1,760,405 Culture & Public safety $ 7,569,078 Rec, 13% Streets $ 1,162,759 Planning $ 548,859 Culture & recreation $ 1,955,423 Streets, Public 8% Safety, 50% Solid waste $ 1,524,765 Maintenance services $ 497,198 General Govt Public Safety Streets Total $ 15,018,487 Planning Culture & Rec Solid Waste Maintenance 20 10  Budget to Budget Comparison by General Fund Division General Fund FY20 FY21 Increase / Division Budget Budget (Decrease) City Council $ 78,216 $ 82,250 $ 4,034 City Management 383,657 505,472 122,815 Public Information 99,304 55,292 (44,012) Retail Development 48,731 42,457 (6,274) Finance 352,965 399,944 46,979 Human Resources 196,061 230,665 34,604 Municipal Court 199,634 248,674 49,040 PD Administration 323,280 360,050 36,770 PD Patrol 2,915,589 3,118,742 203,153 PD Support Services/CID 1,104,994 1,179,994 75,000 21 Budget to Budget Comparison by General Fund Division General Fund FY20 FY21 Increase / Division Budget Budget (Decrease) PD Animal Control $ 99,317 $ 102,747 $ 3,430 PD Code Enforcement 71,299 78,290 6,991 FD Suppression 2,655,440 2,729,255 73,815 FD EMS 94,971 0 (94,971) Information Technology 239,520 0 (239,520) Streets 1,312,094 989,126 (322,968) Rec Maintenance 1,025,258 1,043,306 18,048 Rec Community Center 137,449 219,585 82,136 Rec Recreation 164,006 196,696 32,690 Planning 164,501 193,390 28,889 22 11  Budget to Budget Comparison by General Fund Division General Fund FY20 FY21 Increase / Division Budget Budget (Decrease) Inspections $ 258,482 $ 327,958 $ 69,476 Geographic Info Systems 32,890 27,511 (5,379) Library 357,799 495,836 138,037 Other Costs 427,321 195,651 (231,670) Garbage & Recycling 1,319,703 1,405,280 85,577 Brush 130,213 119,485 (10,728) Fleet 295,955 497,198 201,243 Building Maintenance 297,701 0 (297,701) Engineering 150,955 173,633 22,678 Total General Fund Expenditures $ 14,937,305 $ 15,018,487 $ 81,182 23 FY21 General Fund Expenditures by Category Personnel $ 9,279,802 Supplies 478,969 Services, 27% Maintenance 338,917 Services 4,052,484 Personnel, 62% Other Costs 195,651 Capital Outlay 14,495 Transfers 658,169 Personnel Supplies Maintenance Services Other Costs Capital Outlay Total $15,018,487 Transfers 24 12  Budget to Budget Comparison by Expenditure Category General Fund FY20 FY21 Increase / Expenditure Category Budget Budget (Decrease) Personnel $ 9,541,069 $ 9,279,802 $ (261,267) Supplies 479,463 478,969 (494) Maintenance 531,709 338,917 (192,792) Services 2,883,765 4,052,484 1,168,719 Other Costs 220,918 195,651 (25,267) Capital Outlay 0 14,495 14,495 Transfers 1,280,381 658,169 (622,212) Totals $ 14,937,305 $ 15,018,487 $ 81,182 25 Significant Changes Personnel Category • $143,000 of expenditures are transferred to the Info Technology Fund • $252,000 of expenditures are transferred to the Building Maintenance Fund • Civil service pay increases by $86,000 due to step adjustments per the pay plan • The 7% increase in health insurance premiums is $62,000 26 13  Significant Changes Supplies Category • Shifting costs to the Building Maintenance and Information Technology Funds changes the supplies category by $20,000 • Lower prices reduce fuel costs by $47,000 • Transferring library supplies from the Library Book Fund adjusts this category by $49,000 • Clothing costs in PD Patrol increase by $9,700 27 Significant Changes Maintenance Category • Reclassifying building and HVAC maintenance costs into the Building Maintenance Fund adjusts this category by $50,000 • Reclassifying computer system maintenance costs into the Information Technology Fund shifts this category by $159,000 28 14  Significant Changes Services Category • The cost allocation to the General Fund for building maintenance services is $374,000 • The cost allocation to the General Fund for information technology services is $640,000 • Payment processing fees increase by $22,000 as the City absorbs these costs 29 Significant Changes Services Category • Street lighting expenditures grow by $14,720 as more lights are added • Contract mowing costs rise by $13,000 with more frequent ROW mowing • Refuse collections costs increase by $89,000 due to the growth in the customer base 30 15  Significant Changes Other Costs Category • Contributions in FY21 include – HOT Defense Alliance $ 5,630 – Senior Center 10,000 – Bell County Public Health District 50,271 – DBBA 2,500 – BISD Crossing Guard 24,750 – AUSA Scholarship 1,000 – Texas Mayors of Military Communities 1,500 – Hill Country Transit District * 0 Total $95,651 *HCTD operations for FY20 and FY21 are funded by CARES Act. 31 Significant Changes Capital Outlay Category • Capital Outlay rises by $14,495 to purchase an asphalt heater recycler for Public Works and a wood chipper for Parks 32 16  Significant Changes Transfers Category • The transfer for street maintenance falls by $373,000 as the maintenance funding decision is deferred until the middle of FY21 • The transfer to the Civil Service Fund is shown in the personnel costs of police and fire for payouts • The transfer to the Library Book Fund is included in supplies 33 Debt Service Fund FY21 Statement of Fund Balance Projected Spendable Balance, Sept 30, 2020 $ 9,514 Increases/(Decreases) to Fund Balance: FY21 Revenue 1,237,212 FY21 Expenditures (1,177,833) Net Increase/(Decrease) to Fund Balance 59,379 Spendable Fund Balance, Sept 30, 2021 $ 68,893 34 17  FY 21 Debt Service Fund Revenue • A portion of the property tax rate is dedicated for debt service • FY21 revenue includes Property taxes $1,232,711 Miscellaneous 4,501 Total $1,237,212 • The FY21 budget does not propose the use of fund balance to “buy down” the debt rate 35 Outstanding Debt at October 1, 2020 Outstanding Bond Issuance Description Amount General Obligation Bonds, Series 2003 $ 570,000 General Obligation Bonds, Series 2005 $ 1,100,000 Certificates of Obligation, Series 2008 $ 735,075 Certificates of Obligation, Series 2015 $ 845,000 G.O. Refunding Bonds, Series 2017 $ 1,160,000 Certificates of Obligation, Series 2018 $ 2,130,000 G.O. Refunding Bonds, Series 2019 $ 4,495,000 Tax-Supported Debt Outstanding $ 11,035,075 36 18  Annual Debt Service Payments on Tax-Supported Debt $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Interest Principal 37 Information Technology Fund FY21 Statement of Fund Balance Projected Spendable Balance, Sept 30, 2020 $ 105,364 Increases/(Decreases) to Fund Balance: FY21 Revenue 815,192 FY21 Expenditures (890,183) Net Increase/(Decrease) to Fund Balance (74,991) Spendable Fund Balance, Sept 30, 2021 $ 30,373 The projected spendable fund balance at September 30, 2020 includes the accumulated reserves from the IT Equipment Replacement Fund. 38 19  Information Technology Fund FY21 Revenue • Revenue is based upon a cost allocation to all departments – Personnel costs are split 75% to the General Fund and 25% to the Utility Fund – General costs are allocated based upon device count – Department-specific charges are billed to the user 39 Information Technology Fund Expenses by Category Personnel $195,007 Personnel 22% Supplies 69,345 Maintenance 346,710 Services 96,621 Services 11% Capital Outlay 182,500 Total $890,183 Maintenance 39% Personnel Supplies Maintenance Services Capital Outlay 40 20  Significant Activity in FY21 • More than thirty computers will be purchased as part of the annual replacement plan for $46,000 • The conversion to Microsoft Office365 adds $36,000 for the second of three “high cost” years • Capital items include the following – $110,000 to replace servers, switches and storage array – $29,000 to rebuild wireless connections at two facilities – $20,000 for a fiber connection to the Harris Center – $23,500 for three copiers 41 Building Maintenance Fund FY21 Statement of Fund Balance Projected Spendable Balance, Sept 30, 2020 $ 6,641 Increases/(Decreases) to Fund Balance: FY21 Revenue 443,767 FY21 Expenditures (441,116) Net Increase/(Decrease) to Fund Balance 2,651 Spendable Fund Balance, Sept 30, 2021 $ 9,292 The projected spendable fund balance at September 30, 2020 includes the accumulated reserves from the HVAC Replacement Fund. 42 21  Building Maintenance Fund Expenses by Category Personnel $244,866 Supplies 31,749 Maintenance 30% Maintenance 131,285 Services 19,353 Personnel Transfers 13,863 56% Total $441,116 Personnel Supplies Maintenance Services Transfers 43 Building Maintenance Fund FY21 Activity • Revenue is derived from a cost allocation to all departments based upon building square footage or specific department needs • Fifteen HVAC units at various City facilities have been identified for replacement in FY21 at a cost of $66,000 44 22  Hotel / Motel Fund FY21 Statement of Fund Balance Projected Spendable Balance, Sept 30, 2020 $ 228,471 Increases/(Decreases) to Fund Balance: FY21 Revenue 151,680 FY21 Expenditures (203,572) Net Increase/(Decrease) to Fund Balance (51,892) Spendable Fund Balance, Sept 30, 2021 $ 176,579 45 Hotel / Motel Fund Expenses by Category Personnel $ 30,207 Services 13% Supplies 165 Services 26,700 SSP 121,500 Transfers 25,000 Sponsorship, Support & Personnel Preservation Total $203,572 Supplies 60% Services Sponsorship, Support & Preservation Transfers 46 23  Hotel / Motel Fund FY21 Activity • Hotel occupancy – and its related tax – may approach average levels after COVID-19 subsides • Tourism sponsorship falls from $62,780 to $50,000 as our ability to support events is impacted by reduced revenues • Hotel/Motel funding for historical preservation efforts (Standpipe) deferred until FY22 • Chamber / Visitor Center support continues at $12,500 in FY21 47 TIRZ Operating Fund FY21 Statement of Fund Balance Projected Spendable Balance, Sept 30, 2020 $ 270,677 Increases/(Decreases) to Fund Balance: FY21 Revenue 2,689,775 FY21 Expenditures (1,943,891) Net Increase/(Decrease) to Fund Balance 745,884 Spendable Fund Balance, Sept 30, 2021 $ 1,016,561 48 24  Budget to Budget Comparison TIRZ Operating Fund Revenue TIRZ Fund FY20 FY21 Increase / Revenue Budget Budget (Decrease) City $1,203,433 $1,630,640 $ 427,207 County 768,242 1,054,435 286,193 Interest 14,320 4,700 (9,620) Total $1,985,995 $2,689,775 $ 703,780 FY21 revenue assumes a 33% increase in TIRZ property value to $250,867,672, along with a City tax rate of $0.65/$100 of taxable value. 49 Budget to Budget Comparison TIRZ Operating Fund Expenditures TIRZ Fund FY20 FY21 Increase / Expenditures Budget Budget (Decrease) Debt Service $ 418,315 $413,685 $ (4,630) Grants 100,000 50,000 (50,000) Transfer to Capital Projects, Transfers 1,442,731 1,480,206 37,475 75% Total $1,961,046 $1,943,891 $ (17,155) Transfer to Capital Projects Transfer to General Fund Debt Service Grants 50 25  TIRZ Capital Projects Fund • Provides funding for multi-year capital projects within the TIRZ that are approved by the Board and City Council • Receives funds from the TIRZ Operating Fund • Estimated cash balance at October 1, 2020 is $2,100,000 51 TIRZ Capital Projects Fund Project Allocations Funding through Spent or Funding Remaining Projected Allocations Projected Total Project FY 2020 Encumbered FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Allocation Funding Heritage Park 2,100,000 636,164 1,463,836 1,450,000 1,450,000 2,900,000 5,000,000 Southwest Parkway 450,000 169,145 280,855 200,000 750,000 950,000 1,400,000 South Belton SUP 432,114 310,859 121,255 - 432,114 Standpipe 120,000 - 120,000 - 120,000 Library 125,000 55,665 69,335 - 125,000 Connell St / 6th Ave 100,000 80,163 19,838 1,200,000 2,436,195 3,636,195 3,736,195 Contingency 36,195 - 36,195 (36,195) (36,195) - Total 3,363,309 1,251,996 2,111,313 1,450,000 1,650,000 1,950,000 2,400,000 7,450,000 10,813,309 52 26  TIRZ Fund Long-Term Forecast FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Projected Budgeted Forecasted Forecasted Forecasted Beginning Fund Balance $ 304,842 $ 270,677 $ 1,016,561 $ 1,787,618 $ 2,626,318 Ad Valorem Taxes - City $ 1,155,204 $ 1,630,640 $ 1,761,091 $ 1,901,978 $ 2,054,137 Ad Valorem Taxes - County $ 735,127 $ 1,054,435 $ 1,138,790 $ 1,229,893 $ 1,328,284 Other Misc. Income $ 6,550 $ 4,700 $ 4,700 $ 4,700 $ 4,700 Total Revenue $ 1,896,881 $ 2,689,775 $ 2,904,581 $ 3,136,571 $ 3,387,121 Grants $ 70,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Debt Service $ 418,315 $ 413,685 $ 402,110 $ 265,200 $ - Transfer To General Fund $ 48,731 $ 30,206 $ 31,414 $ 32,671 $ 33,978 Transfer To TIRZ Capital Projects Fund $ 1,394,000 $ 1,450,000 $ 1,650,000 $ 1,950,000 $ 2,436,195 Total Expenditures $ 1,931,046 $ 1,943,891 $ 2,133,524 $ 2,297,871 $ 2,520,173 Fund Balance Impact $ (34,165) $ 745,884 $ 771,057 $ 838,701 $ 866,949 Ending Fund Balance $ 270,677 $ 1,016,561 $ 1,787,618 $ 2,626,318 $ 3,493,267 53 In Summary • Reduced property tax rates are projected to provide sufficient resources for essential services • Sales tax revenue is expected to remain at the lower levels seen during COVID-19 pandemic • General Fund budget is essentially flat from FY20 by eliminating or deferring: – Street maintenance funding – Personnel cost adjustments including merit and retirement plan changes – Additional full-time personnel – Non-essential purchases 54 27  In Summary • Internal service funds concentrate oversight responsibilities and ensure proper cost allocations for these functions • Hotel/Motel Fund still feeling effects from COVID-19 but may recover in FY21 • TIRZ Fund support for major capital projects continues to grow with decisions ahead • We may have the opportunity to return with a budget amendment to fund priority projects if revenue can support them 55 Upcoming Budget Related Items • Water/Sewer Fund • Various Vehicle/Equipment Replacement Funds • BEDC • Five-Year Capital Improvements Program • Strategic Plan 56 28 Questions/Comments? 57 29