City Council

Belton City Council Meeting June 23, 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 (Zoom), Guy O'Banion and Dan Kirkley. Staff present included Sam Listi , John Messer, Amy Casey, Gene Ellis, Cheryl Maxwell, Paul Romer, Chris Brown, Cynthia Hernandez, Mike Rodgers, Susan Allamon and Jeremy Allamon. The Pledge of Allegiance to the U.S. Flag was led by Councilmember Guy O'Banion and the Pledge of Allegiance to the Texas Flag was led by City Clerk Amy Casey. The Invocation was given by Councilmember Dan Kirkley. 1. Call to order. Mayor Grayson called the meeting to order at 5:32 p.m. 2. Public Comments. (Audio 1:49) There were no public comments. Consent Agenda (Audio 1:55) 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 minutes of June 9, 2020, City Council Meeting. 4. Consider an appointment to the Historic Preservation Commission - Ailehs Gaines 5. Consider a resolution authorizing an agreement releasing plat approval authority to the Village of Salado for the preliminary/final plat of Dunlap Subdivision, located in both Belton and Salado ETJs. Upon a motion for approval by Councilmember Holmes, and a second by Councilmember O'Banion , the Consent Agenda was unanimously approved upon a vote of 7-0. Planning and Zoning 6. Hold a public hearing and consider a zoning change from Commercial Highway to Single Family - 2 District with a Conservation and Revitalization Overlay to allow both single family use and manufactured homes on Lots 5, 6 1 and 7, Block 1, Mann Addition, located at 2214, 2220, and 2224 S. Penelope Belton City Council Meeting June 23, 2020 - Page 2 Street, on the east side of Penelope Street, north of East Avenue W. (Audio 2:58) Public Hearing: no one spoke for or against. Upon a motion by Councilmember Kirkley and a second by Councilmember Holmes, 2214, 2220 and 2224 S. Penelope Street were rezoned to Single Family-2 District with a Conservation and Revitalization Overlay to allow both single family use and manufactured homes upon a vote of 6-1 with Councilmember Leigh providing the dissenting vote. ORDINANCE NO. 2020-24 AN ORDINANCE AMENDING THE ZONING ORDINANCE OF THE CITY OF BELTON BY CHANGING THE DESCRIBED DISTRICT FROM COMMERCIAL HIGHWAY DISTRICT TO SINGLE FAMLY TWO DISTRICT WITH A CONSERVATION AND REVITALIZATION OVERLAY ON APROXIMATEL Y 0.57 ACRE, WITH DEVELOPMENT TO BE REGULATED UNDER TYPE AREA 2 DESIGN STANDARDS. 7. Hold a public hearing and consider a zoning change from Retail District and Planned Development (Agricultural) District for a Bed and Breakfast, to Multi- Family District on approximately 6 acres located at 1011 W. 2nd Avenue, on the south side of 2nd Avenue, east of Colonial Crossing Apartments. (Audio: 14:14) Public Hearing: Ray Severn , Developer, said he was available to answer questions. No one else spoke for or against. Upon a motion by Councilmember Leigh , and a second by Councilmember Kirkley, 1011 W . 2 nd Avenue was rezoned to Multi-Family District upon a vote of 7-0. ORDINANCE NO. 2020-25 AN ORDINANCE AMENDING THE ZONING ORDINANCE OF THE CITY OF BEL TON BY CHANGING THE DESCRIBED DISTRICT FROM RETAIL DISTRICT AND PLANNED DEVELOPMENT (AGRICULTURAL) DISTRICT FOR A BED AND BREAKFAST TO MULTI FAMLY DISTRICT ON APROXIMATELY 6.0 ACRES, WITH DEVELOPMENT TO BE REGULATED UNDER TYPE AREAS 4 AND 8 DESIGN STANDARDS. FY 2021 Budget (Audio 21 :03) 8. Conduct a work session on the FY2021 budget for the following funds: A. Water and Sewer Fund Belton City Council Meeting June 23, 2020 - Page 3 B. Drainage Fund C. Belton Economic Development Corporation 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 7:05 p.m. ATTEST: ~ay:-  FY21 Budget Workshop June 23, 2020 Presented by: Michael Rodgers, CPA Director of Finance Funds To Be Discussed • Water and Sewer Fund • Drainage Fund • BEDC 2 1  Water and Sewer Fund Forecast for FY20 FY20 Year-End Budget Estimate Revenue $ 8,812,129 $ 8,790,974 Expenditures (8,811,520) (8,987,387) Incr/(Decr) to Reserve $ 609 $ (196,413) 3 Forecast for FY20 • Water and sewer revenue may exceed budget due to increasing consumption over the prior year • Late payment and reconnection fees are under budget due to COVID-19 relief • Setting aside $1,300,000 for necessary capital projects pushes expenditures over budget by $176,000 – Forthcoming budget amendment for FY20 4 2  Water and Sewer Fund FY21 Statement of Fund Balance Projected Unrestricted Balance, Sept 30, 2020 $ 5,962,275 Increases/(Decreases) to Fund Balance: FY21 Revenue 8,981,533 FY21 Expenses (8,979,167) Net Increase/(Decrease) to Fund Balance 2,366 Projected Restricted Balance, Sept 30, 2021 $ 5,964,641 5 Status of Water and Sewer Fund Reserves $8,000,000 $7,000,000 $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 Unrestricted Reserve Balance Minimum Reserve Requirement 6 3  Budget to Budget Comparison by Revenue Category Water and Sewer Fund FY20 FY21 Increase / Revenue Category Budget Budget (Decrease) Water Revenue $ 4,926,686 $ 5,068,687 $ 142,001 Sewer Revenue 3,226,869 3,319,370 92,501 Fees and Other Revenue 478,216 482,998 4,782 Miscellaneous 180,358 110,478 (69,880) Total Revenue $ 8,812,129 $ 8,981,533 $ 169,404 7 FY21 Water and Sewer Revenue • Water and sewer revenue increases as both customer count and consumption volume continue to grow • Fees and other revenue remain relatively flat from FY20 • Miscellaneous revenue falls due to lower interest earnings 8 4  FY21 Water and Sewer Fund Revenue Water revenue $ 5,068,687 Sewer, 37% Sewer revenue 3,319,370 Water, 57% Fees and other 482,998 Miscellaneous 110,478 Total $ 8,981,533 Water Sewer Fees & other Miscellaneous 9 Utility Rates Approved Water Rates 2015 2016 2017 2018 2019 2020 Minimum Bill $15.00 $15.50 $16.00 $16.50 $17.00 $17.00 Per 1,000 Gallons $3.49 $3.49 $3.70 $3.70 $3.70 $3.70 Approved Wastewater Rates 2015 2106 2017 2018 2019 2020 Minimum Bill $12.00 $12.50 $13.00 $13.50 $14.00 $14.00 Per 1,000 Gallons $4.00 $4.50 $5.00 $5.00 $5.00 $5.00 • Rates from the 2014 study have been implemented • No changes to water and sewer rates are proposed for FY21 10 5  TML Survey of Water and Sewer Charges Leander $94.68 Cedar Park $62.33 Belton $57.10 Harker Heights $54.15 Temple $53.60 Killeen $49.07 $0.00 $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 11 Water and Sewer Fund Revenue from FY14 to FY21 FY Water Sewer Other $10,000,000 $9,000,000 2014 $3,369,275 $1,888,871 $ 313,978 $8,000,000 $7,000,000 2015 $3,780,854 $2,100,850 $ 413,554 $6,000,000 2016 $4,030,216 $2,468,700 $ 420,284 $5,000,000 $4,000,000 2017 $4,557,170 $2,827,928 $ 567,997 $3,000,000 $2,000,000 2018 $4,907,703 $3,087,121 $ 697,601 $1,000,000 2019 $4,725,361 $3,155,709 $ 750,217 $0 2020Projected $4,966,941 $3,254,285 $ 569,748 2021Budget $5,068,687 $3,319,370 $ 593,473 Water Sewer Other 12 6  Budget to Budget Comparison by Division Water and Sewer Fund FY20 FY21 Increase / Division Budget Budget (Decrease) Utility Operations $ 740,358 $ 813,340 $ 72,982 Utility Finance 509,694 595,808 86,114 Water 3,023,327 3,451,064 427,737 Distribution 868,036 884,555 16,519 Treatment 1,053,394 981,852 (71,542) Other Costs 2,616,711 2,252,548 (364,163) Total Expenses $ 8,811,520 $ 8,979,167 $ 167,647 13 FY21 Water and Sewer Fund Expenditures by Category Personnel $ 1,882,602 Transfers, Personnel, 19% 21% Supplies 120,912 Maintenance 224,930 Services 511,314 Debt 1,802,548 Other Other Costs 2,473,059 Costs, 28% Debt, 20% Capital Outlay 292,410 Personnel Supplies Maintenance Transfers 1,671,392 Services Debt Other Costs Capital Outlay Transfers Total $ 8,979,167 14 7  Budget to Budget Comparison by Expenditure Category Water/Sewer Fund FY20 FY21 Increase / Expense Category Budget Budget (Decrease) Personnel $ 1,823,855 $ 1,882,602 $ 58,747 Supplies 121,293 120,912 (381) Maintenance 314,688 224,930 (89,758) Services 329,187 511,314 182,127 Debt 2,110,311 1,802,548 (307,763) Other Costs 2,149,881 2,473,059 323,178 Capital Outlay 631,240 292,410 (338,830) Transfers 1,331,065 1,671,392 340,327 Totals $ 8,811,520 $ 8,979,167 $ 167,647 15 Significant Changes Personnel Category • 60% of the Assistant Director of Public Works position that was a mid-year hire FY20 has been allocated to the Water and Sewer Fund • A portion of the Public Information Officer position has been allocated to the Water and Sewer Fund • Health insurance premiums rise by 7% 16 8  Significant Changes Supplies Category • Lower fuel costs provide savings to purchase new radios and an inspection camera 17 Significant Changes Maintenance Category • Reclassifying building maintenance and computer system maintenance costs into the internal service funds decreases this category by $81,000 • Consolidating vehicle maintenance costs into the Fleet Division within the General Fund reduces this category by $15,000 18 9  Significant Changes Services Category • The cost allocation to the W/S Fund for building maintenance services is $69,000 • The cost allocation to the W/S Fund for information technology services is $161,000 • Payment processing fees increase by $60,000 as the City may absorb these costs for a full year 19 Significant Changes Services Category • Twenty-five percent of engineering consultant costs will be allocated to the Drainage Fund instead of the Water and Sewer Fund in FY21 • Consulting expenses fall by $37,000 as the pump and lift station generator design project was completed during FY20 20 10  Significant Changes Debt Category • Anticipated debt service reflects a possible bond issuance for the North Belton Elevated Storage Tank project Bond Issuance Description Outstanding Amount Certificates of Obligation, Series 2002 $ 695,000 Certificates of Obligation, Series 2008 $ 89,100 Certificates of Obligation, Series 2015 $ 6,800,000 Certificates of Obligation, Series 2016 $ 9,095,000 G.O. Refunding Bonds, Series 2017 $ 855,000 Revenue-Supported Debt Outstanding $ 17,534,100 21 Annual Debt Service Payments on Revenue-Supported Debt $1,800,000 $1,600,000 $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 2036 Interest Principal 22 11  Significant Changes Other Costs Category • Expenses for water purchases increase by – $120,000 for three months of payments on bonds that will be issued by BCWCID #1 to improve the pumping and transmission facilities of the Belton Transmission System – $75,000 due to a 5¢/1,000 gallon price increase for treated water • WWTP operation costs grow from $614,810 to $746,226 due to capital investment at the treatment plant and Belton’s main lift station 23 Significant Changes Capital Outlay Category • Capital Outlay for FY21 includes Description Budget Trimble unit GPS $ 9,500 Trench and shoring equipment $ 9,510 Two dump trailers $ 11,000 Vac-truck dump station $ 42,000 Vac-truck dump station cover $ 25,000 Rock bucket for excavator $ 5,400 Wash bay $ 20,000 Water meters $170,000 Total $292,410 24 12  Significant Changes Transfers Category • The transfer to capital projects increases to fund several projects, including – E Avenue S water line – N East / E 5th Avenue water line – North Belton elevated storage tank or alternatives 25 Drainage Fund 26 13  Drainage Fund Forecast for FY20 FY20 Year-End Budget Estimate Revenue $ 539,472 $ 516,027 Expenditures (570,812) (530,282) Incr/(Decr) to Reserve $ (31,340) $ (14,255) 27 Forecast for FY20 • Revenue may not increase by the 7.5% that was expected when the FY20 budget was adopted • Expenses are under budget due to salary savings and lower than anticipated maintenance costs 28 14  Drainage Fund FY21 Statement of Fund Balance Projected Spendable Balance, Sept 30, 2020 $ 220,200 Increases/(Decreases) to Fund Balance: FY21 Revenue 548,061 FY21 Expenditures (531,260) Net Increase/(Decrease) to Fund Balance 16,801 Spendable Fund Balance, Sept 30, 2021 $ 237,001 29 Budget to Budget Comparison by Revenue Category Drainage Fund FY20 FY21 Increase / Revenue Category Budget Budget (Decrease) Storm Drainage Fees $533,593 $546,121 $12,528 Interest Income 5,879 1,940 (3,939) Total Revenue $539,472 $548,061 $8,589 30 15  FY21 Drainage Fund Revenue • No change to the City’s drainage fee is proposed for FY21 • Storm drainage fee revenue increases by six percent over the year-end estimate for FY20 as the customer count continues to grow • Interest income falls due to lower yields on investments 31 Drainage Fee Comparison Residential Rate Non‐residential rate for 100,000 SF Temple Temple Killeen Killeen Harker Heights Harker Heights Georgetown Georgetown Cove Cove Belton Belton $‐ $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $‐ $50.00 $100.00 $150.00 $200.00 $250.00 32 16  Drainage Fund Revenue from FY14 to FY21 FY Drainage Fees $600,000 2014 $367,956 $500,000 2015 $360,021 $400,000 2016 $377,990 $300,000 2017 $389,230 $200,000 2018 $452,742 $100,000 2019 $492,638 $0 2020Projected $513,031 2021Budget $546,121 Drainage Fees 33 Budget to Budget Comparison by Expenditure Category Drainage Fund FY20 FY21 Increase / Expense Category Budget Budget (Decrease) Personnel $ 250,108 $ 261,427 $ 11,319 Supplies 19,430 16,280 (3,150) Maintenance 48,890 19,160 (29,730) Services 10,747 30,243 19,496 Debt 25,607 25,790 183 Transfers 216,030 178,360 (37,670) Totals $ 570,812 $ 531,260 $ (39,552) 34 17  Significant Changes Personnel and Supplies Categories • 20% of the Assistant Director of Public Works position that was a mid-year hire in FY20 has been allocated to the Drainage Fund • Health insurance premiums rise by 7% • Expenditures for supplies decline after purchasing a radio in FY20 35 Significant Changes Maintenance Category • Drainage facilities maintenance is reduced by $14,000 after a concrete drainage channel on 2nd Avenue was constructed during FY20 • Vehicle maintenance expenses are transferred into the Fleet Maintenance Division of the General Fund in FY21 36 18  Significant Changes Services and Debt Categories • Twenty-five percent of engineering consultant costs will be allocated to the Drainage Fund instead of the Water and Sewer Fund • Principal and interest payments remain flat • The outstanding principal balance on Certificates of Obligation, Series 2008 will be $165,825 as of October 1, 2020 37 Annual Debt Service Payments on Revenue-Supported Debt $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 2021 2022 2023 2024 2025 2026 2027 2028 Interest Principal 38 19  Significant Changes Transfers Category • $150,000 will be transferred into the Drainage Capital Projects Fund for the Blair and 4th drainage project that is currently scheduled for 2023 • $28,360 will be transferred into the Drainage Capital Equipment Fund for future replacement of the street sweeper 39 Belton Economic Development Corporation 40 20  BEDC Operating Fund Forecast for FY20 FY20 Year-End Budget Estimate Revenue $ 1,949,760 $ 1,741,414 Expenditures (1,014,489) (855,595) Incr/(Decr) to Reserve $ 935,271 $ 885,819 41 Forecast for FY20 • A sharp drop in sales taxes as a result of COVID-19 creates a revenue deficit of approximately $200,000 • Expenditures are under budget due to savings in business park maintenance, marketing, training, and special services 42 21  BEDC Operating Fund FY21 Statement of Fund Balance Projected Spendable Balance, Sept 30, 2020 $ 4,664,615 Increases/(Decreases) to Fund Balance: FY21 Revenue 1,702,199 FY21 Expenditures (474,143) Net Increase/(Decrease) to Fund Balance 1,228,056 Spendable Fund Balance, Sept 30, 2021 $ 5,892,671 43 Budget to Budget Comparison by Revenue Category BEDC Operating Fund FY20 FY21 Increase / Revenue Category Budget Budget (Decrease) Sales Tax $ 1,881,560 $ 1,659,081 $ (222,479) Rental Income 43,200 27,600 (15,600) Other Revenue 0 7,268 7,268 Interest Income 25,000 8,250 (16,750) Total Revenue $ 1,949,760 $ 1,702,199 $ (247,561) 44 22  FY 21 BEDC Operating Fund Revenue • Sales tax revenue falls by $222,000 (12%) when compared to the FY20 Annual Budget due to COVID-related closures and economic slowdown • Rental income falls while other revenue increases due to the sale of property to Perro Grande Commercial LLC • The decline in interest income reflects lower yields from investments 45 Budget to Budget Comparison by Expenditure Category BEDC Operating FY20 FY21 Increase / Fund Expenditure Category Budget Budget (Decrease) Personnel $ 205,373 $ 200,468 $ (4,905) Supplies 5,800 7,200 1,400 Maintenance 72,785 71,785 (1,000) Services 230,531 144,690 (85,841) Capital Outlay 335,000 50,000 (285,000) Transfers 0 0 0 Totals $ 849,489 $ 474,143 $ (375,346) 46 23  FY 21 BEDC Operating Fund Expenditures • The budget for personnel falls in FY21 as no pay plan changes have been included • Reductions to the services category reflect budget cuts to marketing, training/travel, and special services • Capital outlay falls after property acquisitions were completed during FY20 47 BEDC Capital Projects Fund Balance Sheet 48 24  BEDC Capital Projects Fund Future Commitments 49 BEDC Incentives Fund • The cash balance in the BEDC Incentives Fund is just over $1,800,000 • This money is available to pay incentives that have been offered by BEDC, including CGI and Belltec 50 25  In Summary • Water/Sewer Fund and Drainage Fund revenue continues to grow as more people utilize City services • No rate increases are planned for water, sewer or drainage • Both utility funds will set aside funds for future capital projects • A lean budget has been proposed for BEDC to prepare for the impact of COVID-19 51 Upcoming Budget Calendar Meeting Date Budget Item to be Presented -Discuss vehicle and equipment replacement funds July 14 -Prioritize items that were deferred or eliminated for FY21 -Present the FY21 Proposed Annual Budget to City Council July 28 -Call date for public hearing on the proposed budget -Presentation of fee schedule changes August 4 -Propose a property tax rate (Special) -Call date for public hearing on the property tax rate -Present the Strategic Plan August 11 -Discuss the 2021-2025 Capital Improvements Program -Hold public hearings on budget and property tax rate September 8 -Receive public input on the Strategic Plan -Adopt fee schedule September 15 -Adopt Strategic Plan, FY21 Annual Budget, and tax rate (Special) 52 26 Questions/Comments? 53 27  7/8/2020 BEDC Budget & Annual Update JUNE 23, 2020 BEDC Budget FY 2021 PROPOSED BUDGET ANNUAL UPDATE PROPOSED PROJECTS OVERVIEW 2020 2021 1  7/8/2020 Notes: Sales Tax – projections result of Covid‐19 Rental Income – Decrease reflects Belco lease transfer to Perro Grande due to sale of property. Other Revenues – interest from financing land sale. Interest Income – other investments, interest rates down. Notes: Supplies – projections based on new office location. Maintenance – small decrease due to sale of property. Services – • Marketing ‐ website update in 2020 and GCT activities and travel reduced in 2021 due to COVID‐19. • COG lease eliminated. • Workforce development/talent attraction reduced/eliminated due to COVID‐19. Capital Outlay ‐ Office renovations and land purchase in 2020. 2  7/8/2020 • Completed Wage and Benefits Study • Sale of Property at Rockwool Annual Update for Recycling Facility • BEDC office renovations underway • 3 real estate transactions pending • US Capital 50,000 sf expansion • Ongoing design and easement acquisition for infrastructure projects valued at $5.1 million. • East Street Sidewalk Renovation Complete 2021 BEDC Projects • Finalize design and construct infrastructure projects • I‐35 waterline • I‐14 water & wastewater line • Avenue D extension • Board Workshop to identify and prioritize future projects 3