City Council Workshop or Special Called Meeting

CITY COUNCIL SPECIAL CALLED MEETING WEDNESDAY - MAY 21, 2025 - 5:30 PM Notice of AGENDA Council Chamber/Municipal Court Building 2801 Ranch Road 1869 Liberty Hill, Texas 78642 Elisabeth Brown Tim Hennessy Jacquetta Thayer Diane Williams Wade Ashley Crystal Mancilla Michael Helbing NOTICE Notice is hereby given that a Special Meeting of the City Council of Liberty Hill, Texas has been called for the purposes of discussing City Council's plans for the General Fund (Governmental Activities Fund) for the next budget year. LIVE VIDEO STREAMING Please click the link on the City's Facebook page to watch the meeting live. PLEASE SILENCE YOUR CELL PHONES 1) CALL TO ORDER Establish quorum. 2) PUBLIC COMMENTS Regarding items not on this agenda/Public Comments: Those desiring to speak on a topic not listed on the agenda, please complete a speaker form and present to the City Secretary before the meeting. Speakers will have three minutes each to speak, this time cannot be transferred or shared. Council members may not take action during this item and any responses will be limited to factual statements, recitation of existing policy, or request for the topic to be placed on a future agenda. Regarding topics listed as an agenda item/During specific agenda item: Council requests that speakers complete a speaker form, indicate which agenda item they are interested in speaking about, and submit form to the City Secretary before the agenda item is addressed. Speaker forms may be emailed to the City Secretary before the meeting at esimpson@libertyhilltx.gov. 1 3) REGULAR AGENDA a) Discussion of General Fund needs for next budget year (2025-2026). Discussions may include but not be limited to revenues, expenditures, and creation of or updates to existing policies. Overall Budget processes and meeting schedules. Employee Personnel Pay plan/Merit Program as required by the Home Rule Charter. Options for updating policies and procedures to improve internal controls, and updating Fund Balance Policy. EmpPayMemo.pdf FundBalance.pdf FY25 Budget Calendar Final 4.23.2025.pdf Fleet Management Memo.pdf b) Presentation regarding Enterprise Rent-A-Car. (J. Armstrong) Fleet Management Memo.pdf c) Discussion, consideration and possible action regarding authorize Finance Director to negotiate and execute Master Equity Lease Agreement and Amendment; Full Maintenance Agreement and Addendum; Maintenance Management and Fleet Rental Agreement and Addendum; Agreement to Sell FM Customer Vehicles, Consignment Auction Agreement for Sale of Customer Owned Vehicles and the EFM Government Credit Application with Enterprise Fleet Management, Inc./Enterprise FM Trust and approve budgeted vehicle acquisitions via said agreements. 4) ADJOURNMENT The City Council, Boards, and Commissions reserve the right to reconvene, recess, realign, change the order of business, or adjourn into Execu ve Session at any me during the course of the mee ng, prior to adjournment, to discuss any item listed above, as authorized by Texas Government Code Sec on §551.071 (Consulta on with A orney), §551.072 (Delibera ons about Real Property), §551.073 (Delibera ons about Gi s and Dona ons), §551.074 (Personnel Ma ers), §551.076 (Delibera ons about Security Devices), and §551.087 (Development). In compliance with the Americans with Disabili es Act, the City of Liberty Hill will provide reasonable accommoda on for persons a ending mee ngs. To be er serve you, requests need to be received 48 hours prior to the meeting. Contact the City Secretary at 512-778-5449 – Extension 125. 2 POSTING CERTIFICATION: I, ELAINE SIMPSON – CITY SECRETARY – CITY OF LIBERTY HILL certify that the attached notice of meeting was duly posted on the bulletin board at City Hall located at 926 Loop 332, Liberty Hill, Texas 78642 and on the City website (www.libertyhilltx.gov) on the ______ day of ____________________, 202_ at ______. Elaine Simpson – City Secretary. REMOVAL CERTIFICATION: I ELAINE SIMPSON – CITY SECRETARY – CITY OF LIBERTY HILL certify that the attached notice of meeting was removed from the bulletin board at City Hall located at 926 Loop 332, Liberty Hill, Texas 78642 on the ______ day of __________________, 202_ at _______. INITIALS _______ 3  CITY COUNCIL CITY COUNCIL SPECIAL CALLED MEETING WEDNESDAY - MAY 21, 2025 2801 Ranch Road 1869 - Liberty Hill AGENDA ITEM 3.a Discussion of General Fund needs for next budget year (2025-2026). Discussions may include but not be limited to revenues, expenditures, and creation of or updates to existing policies. Overall Budget processes and meeting schedules. Employee Personnel Pay plan/Merit Program as required by the Home Rule Charter. Options for updating policies and procedures to improve internal controls, and updating Fund Balance Policy. 4 City of Liberty Hill Paul Brandenburg 926 Main Street – P.O. Box 1920 City Manager Liberty Hill, Texas 78642 Phone (512) 778-5449 pbrandenburg@libertyhilltx.gov Staffing, Pay, and Benefits: One of the city council’s priorities for the upcoming FY25-26 annual budget is to identify adequate staffing levels, pay, and benefits to attract new and retain current employees. To achieve this goal, we have identified two objectives: to ensure equal pay for similar work and to ensure rates of pay are consistent with current market rates. This functions to ensure that the City’s compensation system attracts, retains, and motivates a quality workforce. Key areas of this plan include Job analysis and Salary Administration. Job Analysis: Positions are ultimately grouped into classes. Each class includes positions that are similar in duties and responsibilities so that similar requirements as to training, experience, knowledge, skill, and the same rates of compensation are applicable to the class. Salary Administration: A general salary schedule representing various exempt and non-exempt employee groups and positions. For example, this would be varying levels for directors, supervisors, technical, administrative, clerical, and field staff. The police department salary schedule has its own pay structures based upon their job classification and hierarchical structure. In 2024, the City of Liberty Hill was a participant in a salary study for the City of Taylor. Once completed, Liberty Hill was given a copy of the survey. We have utilized the framework of the Taylor study to identify where we compare and what it would take to move to market-based pay for our employees. We used exact or very similar position titles for roughly half of our employees and used information from other participants in the Taylor study to identify as closely as possible an apples- to-apples comparison for every current position we have. Now that we have a Liberty Hill version of the study, the next step is to identify the following question: What is the competitive position in the market that your organization strives for when comparing pay to the market? (i.e., at median, average, 60%, 70%, etc.) Once we have our target, we can present it to the council where staff currently sit in relation to the market and what it will cost to make the change. This will be the biggest cost in reaching the council’s goal. Other steps will include identifying steps for the Police Department, levels in progression, certification pay and requirements, and other benefits that we can add or bolster to attract and retain employees. 5 City of Liberty Hill Paul Brandenburg 926 Main Street – P.O. Box 1920 City Manager Liberty Hill, Texas 78642 Phone (512) 778-5449 pbrandenburg@libertyhilltx.gov Our current Fund Balance Policy: The City of Liberty Hill will maintain budgeted minimum reserves in the ending working capital/fund balances to provide a secure, healthy financial base for the City in the event of a natural disaster or other emergency, allow the stability of City operations should revenues fall short of budgeted projections. Also provide available resources to implement budgeted expenditures without regard to actual timing of cash flows into the City. Operating Reserves – The City will maintain emergency reserves at a minimum of 25% of net budgeted operating expenditures. Net budgeted operating expenditure is defined as total budgeted expenditures less interfund transfers and charges, general debt service (tax supported), and payments from third party grant monies. The right is reserved by the City Council to change the targeted reserve level by resolution, ordinance, or budget adoption. 1. General Fund – The unobligated fund balance in the General Fund should equal at least 25%. 2. Utility Fund – Working capital reserves in these funds should be at least 25%. Funds in excess of the minimum reserves may be expended for City purposes at the will of the City Council after it has been determined that use of the excess will not endanger reserve requirements in future years. Our Fund Balance policy is too broad and lacks two major factors: - Maximum Reserve Amount - Plan to use excess Fund Balance Most cities target between 60 – 90 days of fund balance but generally employ a minimum reserve and maximum reserve target. Liberty Hill has a minimum reserve requirement but lacks a ceiling and plan to use the excess reserve amount. I would like to propose adding the following to our financial policies regarding fund balance. - A range of 90 days (25%) to 120 days (33%) fund balance requirement - Add a 5 year spend down plan of excess reserves. 6  Calendar for FY 2025-2026 Budget March 2025 FY26 Budget Kickoff – 3/24/2025 Department Budget Needs/Priorities – 3/03/2025 – 3/21/2025 Tax Rate Discussion with Council – 3/24/2025 Meetings with Department Heads – 3/03/2025 – 3/28/2025 April 2025 FY26 General Fund Budget Kick-off. 4/1/2025 FY26 General Fund Budget departmental meetings. 4/1/2025 - 5/15/2025 Chief Appraisal for Wilco submits estimated tax roll valuations. – 4/30/2025 FY26 CIP Budget Draft – 4/30/2025 May 2025 FY26 General Fund Budget Council Meetings. – 5/14/2025 Budget Workshop – 5/21/2025 Tax office submits tax rate calculation worksheet. 5/25/2025 June 2025 FY26 General Fund Budget Council Meetings. – 6/25/2025 Budget Workshop – 6/23/2025Or July 2025 FY26 Proposed Budget filed with municipal clerk (if VAR) (budget adoption August) – 7/31/2025 Chief Appraisal for Wilco submits certified taxable values. – 7/25/2025 Budget Workshop – 7/21/2025 August 2025 Budget officer submits FY26 Tax Rates to Council (NNR, VAR, DeMinimis) (website), publish notice of budget/tax rate hearing (2)(VAR), Council hold a record of vote proposed tax rate (VAR), publish notice tax rate hearing (2)(VAR), budget adoption (VAR), tax rate adoption (VAR), OR budget filed with municipal clerk (if not to exceed VAR)(for budget adoption September). Budget Workshop/Public Hearing - 8/11/2025, Public Hearing Dates: 8/13/2025, 8/27/2025 7 City of Liberty Hill Paul Brandenburg 926 Main Street – P.O. Box 1920 City Manager Liberty Hill, Texas 78642 Phone (512) 778-5449 pbrandenburg@libertyhilltx.gov Fleet Management: I would like to discuss utilizing “Enterprise Fleet Management” for fleet management, vehicle acquisition, and maintenance. The city has been purchasing vehicles in cash and keeping them far past the replacement window. Older vehicles require more maintenance and have a diminished fuel economy. Utilizing fleet management with Enterprise will reduce and stabilize fuel and maintenance costs, making it much easier to budget. In the current 24-25 fiscal year, the city appropriated $950,000 for vehicles to be purchased in cash. Utilizing a lease-purchase for the same vehicles would cost around $250,000 including interest. This would free up $700,000 for other operational functions. If we had invested the difference in our TexPool account, the city would earn approximately $30,000. The city currently lacks a long-term strategy for capital purchases, and this would be a major first step in changing our current way of operating. 8 CITY COUNCIL CITY COUNCIL SPECIAL CALLED MEETING WEDNESDAY - MAY 21, 2025 2801 Ranch Road 1869 - Liberty Hill AGENDA ITEM 3.b Presentation regarding Enterprise Rent-A-Car. (J. Armstrong) 9 City of Liberty Hill Paul Brandenburg 926 Main Street – P.O. Box 1920 City Manager Liberty Hill, Texas 78642 Phone (512) 778-5449 pbrandenburg@libertyhilltx.gov Fleet Management: I would like to discuss utilizing “Enterprise Fleet Management” for fleet management, vehicle acquisition, and maintenance. The city has been purchasing vehicles in cash and keeping them far past the replacement window. Older vehicles require more maintenance and have a diminished fuel economy. Utilizing fleet management with Enterprise will reduce and stabilize fuel and maintenance costs, making it much easier to budget. In the current 24-25 fiscal year, the city appropriated $950,000 for vehicles to be purchased in cash. Utilizing a lease-purchase for the same vehicles would cost around $250,000 including interest. This would free up $700,000 for other operational functions. If we had invested the difference in our TexPool account, the city would earn approximately $30,000. The city currently lacks a long-term strategy for capital purchases, and this would be a major first step in changing our current way of operating. 10  CITY COUNCIL CITY COUNCIL SPECIAL CALLED MEETING WEDNESDAY - MAY 21, 2025 2801 Ranch Road 1869 - Liberty Hill AGENDA ITEM 3.c Discussion, consideration and possible action regarding authorize Finance Director to negotiate and execute Master Equity Lease Agreement and Amendment; Full Maintenance Agreement and Addendum; Maintenance Management and Fleet Rental Agreement and Addendum; Agreement to Sell FM Customer Vehicles, Consignment Auction Agreement for Sale of Customer Owned Vehicles and the EFM Government Credit Application with Enterprise Fleet Management, Inc./Enterprise FM Trust and approve budgeted vehicle acquisitions via said agreements. 11