City Council

MURFREESBORO CITY COUNCIL Regular Meeting Agenda Murfreesboro Police Headquarters, Community Room March 13, 2019 – 11:30 a.m. New Business 1. Redevelopment of Oakland Court (Development Services) 2. Budget Objectives (Administration) Other Business Adjournment  COUNCIL COMMUNICATION Meeting Date: 3/13/2019 Item Title: Redevelopment of Oakland Court Department: Development Services Presented by: Sam Huddleston Summary The Murfreesboro Housing Authority (MHA) plans to redevelop the Oakland Court. Background Information The MHA is a nonprofit corporation that began in 1950 to provide housing for low- income families. The authority is governed by a five-member Board of Directors appointed by the City Mayor. An Executive Director, presently L. Thomas Rowe, is appointed by the Board and serves as Secretary/Treasurer of the Board. MHA’s stated mission is to provide safe and sanitary housing in good repair for eligible families in a manner that promotes serviceability, economy, efficiency and stability of the developments; and to utilize all available resources to maximize the social and economic opportunities of our residents. Oakland Court is 76-home public housing neighborhood on approximately 20 acres between North Academy and Maney Avenues. It was developed by MHA in 1960’s. While it has served the community for many years, many of the structures and the neighborhood is in need of rehabilitation and improvement to modern standards. MHA will create a master plan for the redevelopment of Oakland Court, which is scheduled to be completed in July 2019. Pending stakeholder meeting and working closely with the City’s Planning Department, conceptually MHA would replace the current 76 homes at Oakland Court with 150 brand new homes, along with overall improvements to the neighborhood. Redevelopment of Oakland Court is part of a larger plan by MHA that includes redevelopment of Mercury Court and Parkside, two additional public housing neighborhoods in Murfreesboro. Council Priorities Served Safe and Livable Neighborhoods Providing affordable housing in a safe and livable environment promotes the overall health, safety, and welfare of the community. Engaging our Community MHA is committed to stakeholder meetings during its creation of the development master plan for Oakland Court, as well as Mercury Court and Parkside. The City planning process will require public hearings and public meetings to consider the redevelopment plan. Fiscal Impacts None to the City. MHA will arrange and maintain its own financing for the projects.  COUNCIL COMMUNICATION Meeting Date: 3/13/2019 Item Title: Budget Objectives Department: Administration Presented by: Erin Tucker Summary Initial discussion to establish objective for the FY 2019-20 Budget Background Information Staff is preparing the FY 2019-20 Budget. That preparation will incorporate Council’s objectives for the next year. Council is requested to discuss their objectives and provide direction to staff. This will assist staff in presenting a budget document that meets Council objectives Council Priorities Served Strong and Sustainable Financial and Economic Health The development of a comprehensive budget that addresses Council’s objectives and priorities assures that the City maintains its strong financial condition over the long term. Engaging our Community The City’s budget process incorporates public meetings to provide the community with information about the City’s financial condition and its service priorities. Attachments City Manager’s Memorandum re: Initial Budget Meeting for FY 2019-20 M EMORANDUM C I TY M A NA G E R ’ S O F F IC E Craig Tindall, City Manager March 10, 2019 To: Mayor and Council Subject: Initial Budget Meeting for FY 2019-20 The National Advisory Council on State and Local Budgeting, part of the Government Finance Officers Association, offers Four Principles of the Budget Process: 1. Establish Broad Goals to Guide Government Decision Making 2. Develop Approaches to Achieve Goals 3. Develop a Budget Consistent with Approaches to Achieve Goals 4. Evaluate Performance and Make Adjustments More specifically, municipalities should have broad goals that provide overall direction for the government and serve as a basis for decision making. Specific policies, plans, programs, and management strategies will define how these long-term goals will be achieved. This includes a financial plan and budget that moves the organization toward achievement of goals, within the constraints of available resources. Lastly, program and financial performance should be continually evaluated, and adjustments made, to assure consistent progress toward the established goals. In short, an effective budget process allows Council to make informed choices about the proper allocation of scarce resources, the adequate provision of services to stakeholders, the development of necessary public infrastructure, and the procurement and maintenance of capital assets required to serve the public. Following the above Principals, I would request that Council begin the FY 2019-20 Budget process with a workshop that focuses on the development of objectives to be achieved next year, which will guide in the development of next year’s budget. To assist with these discussions, below are general recommends for budgeting. These are longer term objectives that will form the basis for next and future years’ budgets. Also suggested are objectives specific to next year. To further the specific discussions, strategies are provided that may be instrumental in meeting the objective. These are initial thoughts based on the recommendations. Additional strategies may be developed based on Council direction or offered during the presentation of the budget documents. Recommended General Budget Objectives The following general objectives are recommended to Council as core goals each year to guide the development of a budget to be presented for consideration: 1. Ongoing expenditures should be supported by ongoing revenues and one-time revenues should not be used for ongoing expenditure on a continuous basis. 2. The General Fund contingency reserve should be maintained. 3. When capital projects are considered, all associated costs should be identified in order to properly assess future financial impacts. 4. Each enterprise fund should reflect the actual, full cost of operation, including direct and indirect costs of services provided by the General Fund. 5. Activities that are supported by user fees should be fully cost recoverable. 6. General Fund revenues should not be legally segregated, thereby allowing flexibility in funding decisions on an annual basis based on current economic conditions. 7. Budget development should be guided by a long term, or strategic budget plan. 8. Once adopted, annual budgets should be amended only when required and approved with specific funding sources identified. Recommended Budget Objectives and Strategies for FY 2019-20 The following objectives are suggested for FY 2019-20, along with strategies that are formulated to achieve these objectives: 1. Maintain a strong fund balance Strategy 1: Budget recommendations target maintaining the General Fund Balance within the Council adopted Policy of 15-30% of revenues, with a target of the higher end of this range during periods of rapid population growth Strategy 2: Use five-year trend analysis to assure current recommendations do not allow the General Fund Balance to fall below the Council adopted Policy. 2. Balance revenues and expenses Strategy 1: Annual review of expenditures to assure that public funds are continually used prudently and consistent with budget objectives Strategy 2: Assure recommendations on any borrowing for capital expenses are with Financial Policies and the effect of debt service is clearly reflected in budget documents Strategy 3: Develop and recommend viable revenue enhancements that appropriately match the term of expenditures or the life-cycle of capital assets Strategy 4: Clear reflection of any additional funding or other financial limitations that may be required or must be incurred after the acceptance of any grant funding Strategy 5: Identify, study, and recommend to Council new revenue sources that equitably address the City’s required expenditures 3. Use a long-term financial analysis to understand budget trends affected by current decisions Strategy: Utilize reasonable projections over a minimum of a five-year period when developing the budget document for consideration 2 4. Develop enterprise funds for utility services to equitably balance expenses with tax and user fee revenues Strategy 1: Develop financial recommendations that properly and clearly reflect costs associated with the provision of city services and align revenues with costs whenever possible Strategy 2: Align revenues with expenditures whenever appropriate Strategy 3: Use long-term analysis techniques to set current rates adequate for proper system maintenance and growth projections 5. Establish economic development resources within the City to guide further development and provide long-term community benefit Strategy 1: Identify the City’s economic development assets and develop a detailed marketing plan that capitalizes on these assets Strategy 2: Budget economic development funding to support the necessary consultants and incentive programs Strategy 3: Continue to work with the Chamber of Commerce on large economic development opportunities and marketing of the region In addition to the above recommended budget objectives, Council may have objectives targeted to a specific service of the City. To assist with the discussion, below is an outline of the City’s operating Division and the Departments within each of those Divisions. This list is a guide for Council to identify areas that warrant additional budget considerations, including consideration for supplemental funding. City Services Divisions Police Department Fire Rescue Department Development Services Division Planning & Zoning Department Building & Codes Department Community Development Public Works Division Engineering Department Transportation Department Street Department Community Services Division Parks & Recreation Department Golf Department Community Grants 3  Internal Services Human Resources Department Information Technology Department Purchasing Department Fleet Management Department Facilities Services Department Communications Utility Enterprises Murfreesboro Airport Water Resources Department Electric Department Solid Waste Department City Appointed Officials Administration Department Management & Budget Development Project Management Public Information Economic Development Legal Department Risk Management Finance & Tax Department City Court City Affiliated Entities City Schools Linebaugh Library Evergreen Cemetery cc: Budget Director Erin Tucker Assistant City Manager Darren Gore Assistant City Manager Gary Whitaker 4