City Council

MURFREESBORO CITY COUNCIL Regular Meeting Agenda Murfreesboro Police Headquarters – Community Room February 12, 2020 – 12:30 PM New Business On Motion 1. Public Facility Improvement – Wee Care Day Care (Community Development) Workshop Items 2. Road Project update (Engineering) 3. Presentation of Annual Audit Report (Finance) 4. Potential Debt Refinancing (Administration) 5. Community Investment Program FY 20, FY 21 (Administration) 6. Budget and Financials Update and December Dashboard Information (Administration) Licensing Payment of Statements Other Business Adjournment  COUNCIL COMMUNICATION Meeting Date: 02/12/2020 Item Title: Public Facility Improvement – Wee Care Day Care Department: Community Development Presented by Helen Glynn, Assistant Director Requested Council Action: Ordinance ☐ Resolution ☐ Motion ☒ Direction ☐ Information ☐ Summary Funding of immediate interior repairs and roof replacement at Wee Care Day Care. Staff Recommendation Approval to reimburse the General Fund $37,242 for both repairs using CDBG funds. Background Information The City owns the facility at 510 S. Hancock St. and leases it to Wee Care. Wee Care is responsible for interior maintenance while the City is responsible for exterior and structure maintenance. Wee Care was unable to fund the interior repair of ceiling and lighting at this time and CDBG funding of the Wee Care and City portion is consistent with CDBG guidelines. Council Priorities Served Maintain public safety This activity maintains a safe public facility used for the Wee Care Day Care program. Operational Issues None. Fiscal Impact This $37,242 expenditure is within the Community Development FY 2020 budget to Improve a Public Facility. Attachments 1. Itemized bill for ceiling and lighting repair. 2. Quote for roof repairs.  COUNCIL COMMUNICATION Meeting Date: 02/12/2020 Item Title: Update on Current Transportation Projects Department: Engineering Presented by: Chris Griffith, Executive Director Summary Provide a status on several current transportation projects Background Information Staff is currently managing several transportation improvements projects that are in various phases of design or construction. Council Priorities Served Responsible budgeting Improve economic development Expand infrastructure Maintain public safety The current planned transportation projects will enhance the City’s road network which will improve the city’s infrastructure and offer economic development opportunities. Fiscal Impacts The projects totaling more than $200 million are funded by the State and Federal Transportation Departments, Community Improvement Program, and local developers.  COUNCIL COMMUNICATION Meeting Date: 02/12/2020 Item Title: Presentation of Annual Audit Report Department: Finance Presented by: Melissa Wright Requested Council Action: Ordinance ☐ Resolution ☐ Motion ☒ Direction ☐ Information ☐ Summary Presentation of FY2019 Comprehensive Annual Financial Report (CAFR) report by Jobe, Hastings & Associates Staff Recommendation Accept the FY2019 CAFR as submitted. Background Information Annually, the City is audited by an independent audit firm as required by the State of Tennessee. The audit opinion for FY2019 did not indicate there were any findings, which allowed them to present an unqualified opinion. Council Priorities Served Responsible budgeting By maintaining focus on budgeting versus actual outcomes, as well as, proper presentation of financial information, the City can be proactive when change is necessary during a budget year. Attachments FY2019 CAFR  COUNCIL COMMUNICATION Meeting Date: 02/12/2020 Item Title: Potential Debt Refinancing Department: Budget Presented by: Erin Tucker, Budget Director Summary Hear from Cumberland Securities regarding a potential debt refinancing of City and Water Resources Department variable rate debt to fixed rate Background Information The City (including Water Resources Department) currently has $45.4 million outstanding in variable rate debt. Council Priorities Served Responsible budgeting Eliminating a large balance of variable rate debt would allow the City to recognize low fixed interest rates and better budget the interest rate expense. This move would also be viewed favorably to bond rating agencies and could assist the City in securing lower interest rates on future debt issuances. Fiscal Impact Potential future interest risk savings based on variable rate market conditions would impact debt service for General Fund and Water Resources Department.  COUNCIL COMMUNICATION Meeting Date: 02/12/2020 Item Title: Community Investment Program (CIP) 2020, 2021 Department: Administration Presented by: Erin Tucker, Budget Director Summary 2020 and 2021 Community Investment Program (CIP) Background Information Review and approval of 2020 CIP projects and preliminary review of 2021 CIP projects. Council Priorities Served Responsible budgeting Improve economic development Expand infrastructure Maintain public safety The CIP provides a roadmap for capital projects that will improve the City’s infrastructure, provide necessary equipment and resources for public safety and public health and improve economic development opportunities. Fiscal Impacts Proposed 2020 CIP totals approximately $24 million.  COUNCIL COMMUNICATION Meeting Date: 02/12/2020 Item Title: December 2019 Dashboard Department: Administration Presented by: Erin Tucker, Budget Director Summary December 2019 Dashboard packet Background Information December’s dashboard information includes relevant Financial, Building & Codes, Risk Management and Construction data. Council Priorities Served Responsible budgeting Providing Council with assessible financial information on a regular basis assists in critical decision-making about the fiscal affairs of the City. Fiscal Impacts None Attachments: 1. December 2019 Dashboard 2. City Schools December Dashboard  DECEMBER DASHBOARD Property Taxes 59,181,650 60,000,000 36,621,670 38,373,972 40,471,043 41,492,474 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 - 2016 2017 2018 2019 2020 Actual Actual Actual Actual Actual Property Tax notices were mailed in early October. The tax roll from the County Assessor’s office came in around $60M. Our % of Collections are in line with last year. Receipts through December are running around 89% of the total roll as compared to around 91% for the same time last year. LOCAL SALES TAX BUDGET vs ACTUAL 6,000,000 60,000,000 5,000,000 50,000,000 LOCAL SALES TAX COLLECTIONS 4,000,000 40,000,000 3,000,000 30,000,000 2,000,000 20,000,000 1,000,000 10,000,000 - 0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 20 Budget FY 2020 Actual FY 20 Cumulative FY 19 Cumulative Local Option Sales Tax for FY 20 is running about 3.3% above FY 19 and is coming in about 2% above budget through December.  STATE SALES TAX BUDGET vs ACTUAL 1,400,000 12,000,000 1,200,000 10,000,000 STATE SALES TAX COLLECTIONS 1,000,000 8,000,000 800,000 6,000,000 600,000 4,000,000 400,000 2,000,000 200,000 - 0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 20 Budget FY 2020 Actual FY 20 Cumulative FY 19 Cumulative State Sales Tax is running about 4% above budget and around 7% higher than last year through December. This large difference from FY 19 is due to the adjusted rate for the special census results.  % of Total Current Month Collections Business Tax - Gross Receipts Tax 5.70% State Street Aid - Gas Tax 24.75% Mixed Drink Tax 6.29% State Sales Tax Telecom Sales Tax 61.58% 0.37% Gas Tax Allocation 1.31% Sales Tax now makes up over 60% of the State Shared collections for December, while the State Street Aid Gas Tax (restricted to road improvements) makes up an additional 24.75%. Business License Taxes and Mixed Drink Taxes make up 12% of State Shared revenues.  State Revenue Collections 3,500,000.00 3,000,000.00 2,500,000.00 Total Collections 2,000,000.00 FY 2019 FY 2020 1,500,000.00 1,000,000.00 500,000.00 0.00 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE State Shared Revenue collections show a 6% increase over last year’s State Shared revenues.  Hotel/Motel Tax 350,000 1,800,000 1,600,000 300,000 1,400,000 250,000 1,200,000 200,000 1,000,000 150,000 800,000 600,000 100,000 400,000 50,000 200,000 - - JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN FY 20 Budget FY 2020 Actual FY 2020 Cumulative FY 2019 Cumulative The Hotel/Motel Tax rate doubled in FY 20 from 2.5% to 5%. So far, collections are meeting budget and are in line with FY 19’s reported gross receipts. Finance has budgeted to conduct a Hotel/Motel Tax audit in FY 20, as well.  Salaries & Benefits 12,000,000 90,000,000 80,000,000 10,000,000 70,000,000 8,000,000 60,000,000 50,000,000 6,000,000 40,000,000 4,000,000 30,000,000 20,000,000 2,000,000 10,000,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 20 Budget FY 2020 Actual FY 20 Cumulative FY 19 Cumulative Salaries & Benefits are trending a little under budget due to unfilled vacancies within the City. As of 12/31/19, there are 943 filled full-time positions and 42 vacancies – which is up from 36 vacancies in November. Schools Transfer 700,000 7,000,000 600,000 6,000,000 500,000 5,000,000 400,000 4,000,000 300,000 3,000,000 200,000 2,000,000 100,000 1,000,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 20 Budget FY 2020 Actual FY 20 Cumulative FY 19 Cumulative Budgeted Transfers to City Schools increased by $1.3M from FY 19 to FY 20. This transfer is made in monthly increments evenly distributed throughout the year.  Debt Service Transfer 30,000,000 45,000,000 40,000,000 25,000,000 35,000,000 20,000,000 30,000,000 25,000,000 15,000,000 20,000,000 10,000,000 15,000,000 10,000,000 5,000,000 5,000,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 20 Budget FY 2020 Actual FY 20 Cumulative FY 19 Cumulative The budgeted Debt Service Transfer increased by $1.4M to account for the additional debt service related to the FY 19 $58M SunTrust loan and anticipated debt service for FY 20 debt of $25M. Debt Service is running about 2% higher than this time last year which was anticipated due to the 2019 loan. Repairs & Maintenance 3,000,000 12,000,000 2,500,000 10,000,000 2,000,000 8,000,000 1,500,000 6,000,000 1,000,000 4,000,000 500,000 2,000,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 20 Budget FY 2020 Actual FY 20 Cumulative FY 19 Cumulative Repairs & Maintenance make up 7% of General Fund budgeted expenses. This includes maintenance of software ($1.1M), fleet services ($3.5M). Police R&M for radios, mobile data terminals, etc. totals $1.3M. State Street Aid R&M of streets, markings and right of way totals almost $4M. These expenses are seasonal and fluctuate depending on contract timing and timing of repairs. This is trending about 15% higher than last year due to State Street Aid’s expenses running around $1.8M this year as compared to under $1.4M last year through December. Utilities 500,000 5,000,000 450,000 4,500,000 400,000 4,000,000 350,000 3,500,000 300,000 3,000,000 250,000 2,500,000 200,000 2,000,000 150,000 1,500,000 100,000 1,000,000 50,000 500,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 20 Budget FY 2020 Actual FY 20 Cumulative FY 19 Cumulative Utilities are budgeted to stay relatively flat in FY 20 as compared to FY 19 and are running a little under budget for the year through December.  Fixed Assets 5,000,000 14,000,000 4,500,000 12,000,000 4,000,000 3,500,000 10,000,000 3,000,000 8,000,000 2,500,000 6,000,000 2,000,000 1,500,000 4,000,000 1,000,000 2,000,000 500,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 20 Budget FY 2020 Actual FY 20 Cumulative FY 19 Cumulative $15.3M budgeted for Fixed Assets in FY 20 includes: • $11M in Infrastructure for grant • $430k Recreation equipment funded road construction • $370k public safety; • $2M – Transit Facility • $167k public works • $540k software & computer hardware Timing on spending in Fixed Assets is also seasonal and can fluctuate based on the construction schedules and delivery of equipment. Through December, fixed asset spending is down about 36% due to timing of road construction projects funded through the Infrastructure Department.  DECEMBER SAFETY REPORT City Cumulative All Incidents FY as of December FY 19 = 82 FY 20 = 74 35 30 30 28 26 25 20 19 15 10 11 10 6 55 5 4 22 01 10 11 10 01 11 0 B&C Finance Fire Fleet Golf MED Parks & Police Solid Street Transp Water Rec Waste FY 19 FY 20 Overall for the City, total incidents have shown a slight decrease over the same time period last year.  PEP Workers' Compensation Costs (65 Closed Claims) FYTD City Total= $34,489 as of December 2019 $25,000 $19,837 $20,000 $15,000 $10,000 $7,803 $5,097 $5,000 $555 $1,196 $0 Fire Police P&R Water Other  BUILDING & CODES New Dwelling Units (Single Family, Townhomes & Apartments) 350 1,400 300 1,200 250 1,000 200 800 150 600 100 400 50 200 0 0 JUL AUG SEPT OCT NOV DEC New Permits 127 155 238 318 171 289 Cumulative FY 20 127 282 520 838 1,009 1,298 Cumulative FY 19 367 511 566 935 1,004 1,128 This year’s Dwelling permits are showing a 15% increase over FY 19. Total Permits (all types) 1,400 7,000 1,200 6,000 1,000 5,000 800 4,000 600 3,000 400 2,000 200 1,000 - - JUL AUG SEPT OCT NOV DEC FY 20 Total Permits 1,037 999 958 1,151 1,127 875 Cumulative FY 20 1,037 2,036 2,994 4,145 5,272 6,147 Cumulative FY 19 1,096 2,220 2,939 3,833 4,568 5,318 Total permits are trending up over last year by 15.6%.  Revenues $500,000 $2,300,000 $475,000 $450,000 $1,900,000 $425,000 $400,000 $1,500,000 $375,000 $350,000 $1,100,000 $325,000 $300,000 $700,000 $275,000 $250,000 $300,000 JUL AUG SEPT OCT NOV DEC FY 20 Monthly Revenues $314,962 $295,238 $333,789 $470,007 $326,046 $303,677 FY 20 Cumulative Revenues $314,962 $610,200 $943,989 $1,413,996 $1,740,042 $2,043,719 FY 19 Cumulative Revenues $352,393 $720,696 $1,010,084 $1,390,669 $1,636,188 $2,135,183 Total Building & Code revenues are lagging FY 19 through December by about 4.3%.  Project Tracking Ending Date 01/06/20 Project Cost (including approved Change Orders) Billed to Date (Construction Only) Project Days (including approved Change Orders) Days Remaining $7,000,000.00 400 350 $6,000,000.00 300 $5,000,000.00 250 $4,000,000.00 200 $3,000,000.00 150 $2,000,000.00 100 $1,000,000.00 50 $- 0 Murfreesboro Municipal Airport Terminal Fire & Rescue Station #11 Police C.I.D Building Renovation Siegle Soccer Renovations Pareto Chart for Cumulative Percent of Annual Costs across all Cost Centers is in cells B2 through E3. Project Limits Project Cost (including Billed to Date Project Days (including Days Today / Substantial Project Name Start Date Delivery Method Completion approved Change approved Change Percent Days N.T.P. Orders) (Construction Only) Orders) Remaining Completion Projected August Murfreesboro Municipal Airport Terminal 4/17/2019 Design Build 4/17/2020 $ 5,901,969.76 $ 2,925,086.67 364 65 18% Completion Fire & Rescue Station #11 7/2/2019 Hard Bid 6/16/2020 $ 4,460,869.16 $ 1,643,324.84 350 127 36% Projected to Early Police C.I.D Building Renovation Recently Bid Hard Bid 6 months TBD $ - 0 Siegle Soccer Renovations Recently Bid Hard Bid 7 months TBD $0.00 $ - $ - 0 0 0% Total $10,362,838.92 $4,568,411.51  City of Murfreesboro - Construction Update December 12, 2019 Project Tracking Project Cost (including approved Change Orders) Billed to Date (Construction Only) Project Days (including approved Change Orders) Days Used $18,000,000.00 1,400 $16,000,000.00 1,200 $14,000,000.00 1,000 $12,000,000.00 800 $10,000,000.00 $8,000,000.00 600 $6,000,000.00 400 $4,000,000.00 200 $2,000,000.00 $0.00 0 Cherry Lane Phase II Cherry Lane Phase III Jones Boulevard Improvements Middle Tennessee Boulevard Robert Rose Right Turn Lane Rucker Lane Widening Stones River Greenway Phase IV Pareto Chart for Cumulative Percent of Annual Costs across all Cost Centers is in cells B2 through E3. Project Limits Project Days (including Project Cost (including Billed to Date Today / Substantial Project Name From To Distance approved Change Days Used Percent Days N.T.P. approved Change Orders) (Construction Only) Orders) Completion Cherry Lane Phase II Siegel Soccer Park Sulphur Springs Road 1.73 Miles $13,800,000 (Est Cost) $0.00 0 0 0% Cherry Lane Phase III Broad Street Memorial Blvd (231) 1.10 Miles $46,000,000 (Est Cost) $0.00 0 0 0% Jones Boulevard Improvements Medical Center Parkway Clark Boulevard 0.54 Mile $0.00 0 0 0% Middle Tennessee Boulevard East Main Street Greenland Drive 0.8 Mile $15,986,859.50 $15,550,140.53 945 1148 121% 3/4/2019 1/11/2016 Robert Rose Right Turn Lane Robert Rose Thompson Lane 0.14 Mile $1,208,195.70 $0.00 0 0 0% Highway 96 (Franklin Rucker Lane Widening Veterans Parkway 2.5 Miles $13,200,000 (Est Cost) $0.00 0 0 0% Road) Stones River Greenway Phase IV Barfield Road Barfield Crescent Park 2.65 Miles $5,443,200.00 $3,148,436.00 730 827 113% 12/17/2019 9/11/2017 Total $95,638,255.20 $18,698,576.53  City of Murfreesboro - Construction Update December 12, 2019 Project Project Status / Comments Cherry Lane Phase II Consultant continuing roadway design along with environmental review. ROW acquisition to begin Winter 19/20. Cherry Lane Phase III Received notice to proceed with ROW after revisions were completed for TDOT. Jones Boulevard Improvements Acquisition of Right of Way and Easement was approved at 10/24/19 City Council Meeting. Offer letters sent and currently acquiring ROW. Middle Tennessee Boulevard A couple of minor punch list items remain. Robert Rose Drive Bids received 11/14/19, recommendation of award to go to Council 12/19/19. Construction to start first of the year. Currently acquiring ROW. Rucker Lane Widening Finalizing plans and bid book with consultant. To bid January 2020. Southwest Elementary School Completion on 7/25/19, minor punchlist items remain, final pay application received. Huddleston Steele is working on final change order. (Salem Elementary) Stones River Greenway Phase IV Executed Change Order 2 for the elimination of the retaining wall. Remaining asphalt work to be completed week of 12/10/19 and installation of site specialties week of 12/16/19.