Finance and Government Commitee Budget Meeting #1

CITY OF GRAND PRAIRIE FINANCE AND GOVERNMENT COMMITEE BUDGET MEETING #1 COUNCIL BRIEFING ROOM TUESDAY, JULY 23, 2024 AT 9:00 AM MINUTES CALL TO ORDER Mayor Pro Tem Clemson called the meeting to order at 9:02 a.m. PRESENT Chairwoman Jorja Clemson Council Member Junior Ezeonu ABSENT Council Member Kurt Johnson STAFF PRESENTATIONS 1. Presentation and Discussion of Proposed FY 2024-2025 Operating Budget Management Services and Budget Director Thao Vo reviewed the budget calendar. City Manager William A. Hills welcomed all to the budget workshop, thanked the budget staff for compiling information and for working with the City Manager’s Office to through the challenge of putting the budget together. He discussed the current homestead exemption which is saving homeowners $1.2 million, noting the cap is .20 and we are one step from that cap. Mr. Hills said the General Fund would not be presented yet because assessed values are not yet available and noted the current tax rate would be maintained. Mr. Hills discussed affordable housing being achieved, discussed the financial management policy which limits reliance on sales tax, advised the city is going into the year with frozen positions, reducing number of transfers from General Fund to other areas. He noted the challenges are statewide currently due to a three percent reduction in sales tax, and said fortunately we were up but still have a shortfall for 2024. Mr. Hills said due to the economy and higher interest rates, it is anticipated that houses will not be bought/sold at the previous volume. He encouraged council to be active in this review and said he looks forward to a positive future for the city and remains committed to serving the community and city employees. Mr. Hills noted in this budget they are recommending implementing a two percent increase for all employees to take care of employees. Mayor Pro Tem Clemson thanked him for the summary. Mr. Vo provided a stormwater fund overview. He reviewed highlights of civil plans, Public Works private development projects in construction, stormwater drainage investigation and drainage studies. He reviewed stormwater Capital Improvement Projects (CIP) noting eight are in design and three are in construction. Deputy Mayor Pro Tem Ezeonu asked to clarify what the investigator does. Engineering and Utilities Director Noreen Housewright explained their duties. Mr. Vo discussed stormwater key changes and reviewed the fund budget, projections in Fiscal Year 2023-24. He discussed the fund balance requirement of forty-five Finance and Government Commitee Budget Meeting #1 – July 23, 2024 Page 1 of 5  days and excess available for one time projects, reviewed new requests for the fund and budget changes. Mayor Pro Tem Clemson asked why there was a twenty-one precent increase in personnel. Budget Manager Krystal Krump noted last year not all compression salary changes were done in time to place it into the budget. Deputy City Manager Cheryl De Leon discussed the fee for stormwater remaining the same. Mr. Vo clarified how stormwater fees are calculated. Mayor Pro Tem Clemson said she would like to staff to review to ensure we do not get behind in fee charges. Mr. Vo provided an overview of the Police Department fund including commercial vehicle enforcement, red light safety and US Marshals Services. He discussed an increase revenues. Police Assistant Director Ryan Simpson discussed a grant for commercial vehicles. Mr. Vo said no new revenues will be collected for the Red Light Safety Fund, and Mr. Simpson said it has not been active since 2019 noting the funds can be used for traffic safety related items such as ticket writers, code compliance software, parking enforcement. Mr. Vo reviewed the US Marshal Service agreement funded by a lease agreement for office space use at the Public Safety Building. He said funds are primarily used for facility maintenance and improvements. Mr. Vo noted they will use fifty thousand dollars to improve the interior appearance of Charles V. England Training Building office area. Mr. Vo provided an overview of Fleet Services noting they provide a comprehensive fleet management program for all vehicles and equipment in Grand Prairie’s fleet. He said the fund supports twenty-four fulltime and two part-time employees. Mr. Vo discussed Fleet Services’ accomplishments and highlights, noting they maintain and service 1512 vehicles and equipment. There was discussion on where each fuel center is located, how often vehicles are replaced, and maintaining hybrid and electric vehicles and how funds are budget by department. Mr. Vo provided an overview of the Cemetery Fund which includes care of Memorial Gardens and Mausoleum and discussed providing long term care and maintenance to the cemetery. He noted personnel includes seven fulltime and one part time employee, discussed number of markers sold year to date and review of third area of expansion, noting current plots should go five years. Ms. De Leon said they would come back to the committee with the proposal of expansion. Mr. Vo discussed the Cemetery perpetual care fund which provides long-term care and maintenance to the cemetery once fully occupied. Mr. Vo provided an overview of the Municipal Court funds, discussed the building security fund, judicial efficiency fund, technology fund, truancy prevention and diversion fund. Deputy Mayor Pro Tem Ezeonu asked how the total fees are divided. Municipal Court Director Steven Cherry provided information on how fees are divided with the state and discussed the juvenile diversion program coming on January 1. Deputy City Manager Megan Mahan said most court costs goes back to the state. Mr. Vo provided an overview of Cable operations, advising it provides government access programming to residence in Grand Prairie and accounts for revenue collected from the one percent fee charged to cable customers. He said revenues remain low and are expected to continue to decrease. Mr. Vo provided an overview of the Hotel Occupancy Tax, noting the fund purpose is to promote tourism, Grand Prairie hotels and attractions to a visiting and overnight audience; He Finance and Government Commitee Budget Meeting #1 – July 23, 2024 Page 2 of 5  said the Hotel Motel Fund accounts for 7% tax charged to occupants of facilities with sleeping quarters and noted guests pay 13% Hotel Occupancy Tax. Mr. Vo reviewed highlights, noting the gift shop revenue grew 346% and discussed the use of the event calendar software. Deputy Mayor Pro Tem Ezeonu asked if the Texas Monthly would be paid from this fund and Mr. Vo confirmed noting tourism is growing. Mr. Vo said they added a part time historian and a fulltime group sales manager, and a volunteer and neighborhood services position joined the team. Ms. De Leon discussed the position of the fulltime sales manager focusing on group sales related to youth and the goal to put heads in beds, and capitalizing when AT&T Stadium in Arlington has an event, they will be marketing Grand Prairie hotels. She said the Texas Monthly will help with the hotel motel fund. Deputy Mayor Pro Tem Ezeonu said he saw an ad for Epic Central recently. Communications and Marketing Director Claudia Garibay said streaming and advertising is part of what council recently approved and confirmed they are targeting by age with campaigns targeting different demographics. Ms. De Leon noted when people come in to visit, they spend money adding sales tax dollars. Mayor Pro Tem Clemson said it is exciting and Texas Monthly is surpassing expectations as they promote Grand Prairie, and she supports the fulltime sales manager hire. Ms. Garibay noted Sara Dedeluk is also very involved with the World Cup group coming. There was discussion of the possibility of merging VIA in Arlington for 30 days for the World Cup and the challenge due to they fact they utilize different systems. There was discussion on collaborating with Arlington to get have a free transportation vanpool from Epic Central to AT&T stadium and back and communicating with the North Central Texas Council of Governments. Mr. Vo provided an overview of the Cricket Fund. He discussed hosting the ICC Men’s T20 World Cup. There was discussion on the challenges in communicating with the Cricket group. Ms. De Leon said it is considered a major event and the city is able to get money back from the state and has applied for reimbursement for both the city and for the Cricket group. She confirmed they are paying rent and they agreed to a royalty percentage on merchandise, she confirmed staff is working to get that from them. There was discussion on them no yet having met their contractual obligations, so the money in Miscellaneous Operating Expenses has not been paid. Ms. Mahan discussed construction and obligations per the lease, noting they owe the city and are working through those issues. She said once they meet the criteria, the city will release the five hundred thousand. Mr. Vo provided an overview of the Tree Preservation Fund, discussed current revenue fund which comes the fee of $200 for each protected tree. He said funds are placed in an interest- bearing account. Ms. Mahan said they are looking at revising the policy to help utilize funds effectively for such things as irrigation and maintenance. Deputy Mayor Pro Tem Ezeonu asked for clarification of the modified budget and projected value. Mr. Vo said they would review and provide an update. Mayor Pro Tem Clemson called a recess at 10:00 a.m. Mayor Pro Tem Clemson called meeting back to order at 10:15 a.m. Mr. Vo reviewed the Crime Control and Prevention District – Community Policing Fund, noting they are currently using the fund to hire, equip and train officers. He confirmed there are sixty-nine police officers in the fund. Mr. Simpson advised Axon is used for tasers, body cams for Code Compliance, Detention and Police officers, software services, and dashcams. Finance and Government Commitee Budget Meeting #1 – July 23, 2024 Page 3 of 5  He noted Flocksafety provides license plate recognition cameras and software. Mr. Simpson discussed a robbery at The Finch where flock safety cameras were instrumental in helping to catch the suspect coming and going, and their use of Ring cameras nearby to track the suspect vehicle in Arlington. He noted they were able to make an arrest within a day or two. Ms. De Leon confirmed it was an insider job – a contractor. Mr. Simpson reviewed the replacement of cameras. Mr. Vo discussed moving equipment purchases from the CCPD Fund for vehicles and advised no new positions would be funded this year. Ms. De Leon discussed the revenue shortfall because of new projections, proposing a very conservative budget and noted some changes made to get to where the funds need to be. They reduced revenues and some expenses, but at an acceptable level to achieve a self-sustaining fund. Mr. Hills discussed this being the result of sales tax being down nine percent, and noted this would be a recovery year. He said we need to take care of those we have and adding five officers does not help if we have to take five from somewhere else. He noted this will set up the budget to balance in the future. Mayor Pro Tem Clemson supported this and noted the recovery phase, advising things do not have to stay this way. Mr. Hills confirmed the city will be able to maintain its high level of service and can build some fund balances by being conservative this year. Mr. Vo provided an overview of the water rates, discussed five components of the water bill, noting water drainage and storm water is built into the water bill. He discussed the current fee from Republic Waste Services for trash/recycling built into the water bill charge. He advised some residents opted out previously and noted there is a different rate for seniors. There was discussion on how to obtain recycling bins. Ms. De Leon noted they want to review the utility bill for constituent questions. Ms. Housewright discussed the base fee and the impact of how much water is used. She noted costs depend on the cost to purchase water and the payment made to the Trinity River Authority (TRA) to take the water away. Mr.Vo discussed pump stations, garbage tax and recycling costs, Dallas, Fort Worth, Midlothian and Mansfield water sources. Ms. De Leon advised water rates would be presented but the Water Fund will be discussed next week. Ms. Housewright discussed the proposed rate plan recommended at a 7.5% increase across all rates categories. She noted this rate plan balances the operating and capital budgets. Ms. Housewright reviewed the residential impact. Deputy Mayor Pro Tem Ezeonu asked to clarify Wastewater calculation. Ms. Housewright discussed a cap for wastewater usage. Mr. Vo confirmed water that goes to treatment during winter months is what is used to calculate the fee. There was discussion on how the rate is capped for wastewater. Ms. Mahan noted there are higher tiers for those who have water systems for pools, etc. There was discussion on winter monthly average. Ms. Housewright reviewed multifamily rates with a 7.5% increase as well. Mr. Vo noted there is no cap on this because everything goes into sewer. Ms. Housewright discussed how they have a separate irrigation meter. Mayor Pro Tem Clemson noted this is fair across the board. Mr. Hills noted apartments have one meter going in from the city and some apartments have more than one meter access point because of their size. He said the total may come from six meters that are totaled and then billed. Deputy Mayor Pro Tem Ezeonu asked if there is a per unit fee. Mr. Hills confirmed noting an increase in per unit fee at 7.5%, but advised the lifeline rate stays the same. Ms. Housewright discussed the commercial/industrial impact. Mayor Pro Tem Clemson asked how long it has been since there has been an increase for the lifeline rate. Mr. Hills said it was reviewed last year and Council chose not to make a change. Mayor Pro Tem Clemson asked if it can be reviewed next year and asked about the $1 million shortfall. Mr. Hills said this will make up for that shortfall. Ms. Mahan noted Ms. Housewright did review various projects and this reflects changes to allow for balancing. Ms. Finance and Government Commitee Budget Meeting #1 – July 23, 2024 Page 4 of 5  Housewright confirmed changes would take effect on October 1st. There was discussion on how the cable fund money would be used and upcoming CCPD meeting to review proposed budget. Ms. De Leon advised additional information on the property tax will be presented at next meeting. Mayor Pro Tem Clemson asked if there were any speakers. Deputy City Attorney Tiffany Bull advised there were none. EXECUTIVE SESSION There was no closed session. CITIZEN COMMENTS None. ADJOURNMENT Mayor Pro Tem Clemson adjourned the meeting at 10:49 a.m. The foregoing minutes were approved at the September 3, 2024, Finance and Government Committee meeting. Mona Lisa Galicia, City Secretary Finance and Government Commitee Budget Meeting #1 – July 23, 2024 Page 5 of 5