City Council

MURFREESBORO CITY COUNCIL Special Meeting Agenda Murfreesboro Police Headquarters – Community Room September 16, 2020 – 11:30 AM Workshop Items 1. Discussion of Handling Electric Department Sale Proceeds (Administration) 2. July 2020 Financial Dashboard Information (Administration) Board Appointments for Council Assignments Licensing Payment of Statements Adjournment  COUNCIL COMMUNICATION Meeting Date: 09/16/2020 Item Title: Discussion of Handling Electric Department Sale Proceeds Department: Administration Presented by: Craig Tindall, City Manager Summary Discussion to provide direction regarding the method to be used to manage the sale proceeds. Background Information On June 30, 2020, the City closed on the transaction that sold its Electric Department assets and operations to Middle Tennessee Electric Membership Corporation. MTEMC made an initial payment of approximately $40m and will make annual payments over the next 15 years of approximately $17.3m. Council has expressed its desire for these proceeds to be used for capital projects and to maintain a balance over a long period. Staff seeks direction from Council on the structure that will be used to manage these funds and the amounts that will be made available for capital projects on an annual basis. Council Priorities Served Responsible budgeting Proceeds from this transaction may allow the City to invest in the community while responsibly managing its General Fund debt. Improve economic development Utilizing the proceeds from this transaction may allow the City to take advantage of economic development opportunities as they come available. Expand infrastructure Utilizing the proceeds from this transaction may allow the City accomplishing needed capital infrastructure projects  COUNCIL COMMUNICATION Meeting Date: 09/09/2020 Item Title: July 2020 Dashboard Department: Administration Presented by: Erin Tucker, Budget Director Summary July 2020 Dashboard packet Background Information July’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. July 2020 Dashboard 2. City Schools July Dashboard  JULY DASHBOARD Property Tax 70,000,000 59,082,540 60,304,804 60,000,000 50,000,000 40,471,043 41,492,474 38,373,972 36,621,670 40,000,000 30,000,000 20,000,000 10,000,000 - FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 (Budget) Property Tax notices will be mailed in early October. The FY21 Budget assumes a 2% increase. Final assessment information is not yet available. LOCAL SALES TAX BUDGET vs ACTUAL 6 60 Millions Millions 5 50 4 40 Monthly Total Cumulative Total 3 30 2 20 1 10 - 0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY21 Budget FY21 Actual FY 21 Cumulative FY 20 Cumulative Initial estimates for the COVID-19 impact on Local Sales Tax indicated a 55% decrease as compared to FY20 through the first quarter of FY21. Instead, collections for July were 4.6% above July, 2020 and 132% over budget. This information reflects a 2-month lag – the collections are for June 2020 taxes. Barring any future shut-downs or significant economic downturns, this trend is expected to continue.  STATE SALES TAX BUDGET vs ACTUAL 1,400 12 Thousands 1,200 Millions 10 1,000 8 Monthly Total Cumulative Total 800 6 600 4 400 2 200 - 0 JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY21 Budget FY21 Actual FY 21 Cumulative FY 20 Cumulative State Sales Tax was also budgeted at a 55% loss as compared to the first quarter of FY20. Actual results show a nearly flat effect with just a slight (0.6%) decrease for July. This information reflects a 2-month lag – the collections are for June 2020 taxes. Again, barring any future shut-downs or significant economic downturns, this trend is expected to continue.  % of Total Current Month Collections State Street Aid - Gas Tax 11.60% Income Tax 9.73% Mixed Drink Tax 2.48% Telecom Sales Tax 0.19% Business Tax - Gross Receipts Tax Gas Tax Allocation 42.71% 0.69% State Sales Tax 32.60% Sales Tax made up nearly 32% of the State Shared collections for July, while the State Street Aid Gas Tax (restricted to road improvements) made up an additional 11.6%. Business License Taxes were down significantly in previous months due to filing extensions as a result of COVID-19. The July receipts for May remittance leveled the revenue source with FY19 collections.  State Revenue Collections 3.50 25 Millions Millions 3.00 20 2.50 15 2.00 1.50 10 1.00 5 0.50 0.00 0 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE FY20 Actual FY21 Actual FY20 Cumulative FY21 Cumulative Overall, July’s State Shared Revenue collections showed an 18% increase over last year’s State Shared revenues for July. Adjusted State Revenue Collections 3.50 25.00 Millions 3.00 Millions 20.00 2.50 Total Collections 2.00 15.00 1.50 10.00 1.00 5.00 0.50 0.00 0.00 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE FY20 Actual FY21 Actual FY20 Cumulative FY21 Cumulative However, when factoring in the delay in Business License taxes, the adjusted comparison to July 2020 equates to a 34% decrease. This is mostly attributed to the Hall Income Tax which is being phased out. FY21 is the last year for this revenue source. This information reflects a 2-month lag – the collections are for May 2020 taxes. Subsequent sales tax receipts show an increase over last year and will be discussed in the August dashboard.  HOTEL/MOTEL BUDGET vs. ACTUAL 180 1.80 Thousands 160 1.60 Millions 140 1.40 120 1.20 100 1.00 80 0.80 60 0.60 40 0.40 20 0.20 - - JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN FY21 Budget Based on 5 yr Average Actual Budgeted Cumulative Actual Cumulative The Hotel/Motel Tax rate doubled in FY20 from 2.5% to 5%. The July remittance, for June taxes, shows a 62% decrease over last year’s reported occupancy and a 3.7% decrease from this year’s budget. This trend is expected to continue due to the COVID-19 impact on tourism.  Salaries & Benefits 14,000,000 90,000,000 80,000,000 12,000,000 70,000,000 10,000,000 60,000,000 8,000,000 50,000,000 6,000,000 40,000,000 30,000,000 4,000,000 20,000,000 2,000,000 10,000,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 21 Budget FY 21 Actual FY 21 Cumulative FY 20 Cumulative Effective 3/19/20, a hiring freeze was implemented with only critical vacancies being filled. As a result, Salaries & Benefits were trending a little under budget due to unfilled vacancies within the City through July. As of 7/31/20, there were 937 filled full-time positions and 51 vacancies – which is up from 40 vacancies in June. Police had 23 open positions at the end of July, including 9 sworn officer positions and 11 emergency communications staff. Fire had 9 open positions. Department Position # of Vacancies City Manager's Office Director of Project Development 1 Facilities Maintenance Department Custodian 1 Human Resources Assistant Human Resources Director 1 Police Department Sergeant 5 Police Department Police Officer 4 Police Department Communications Shift Supervisor 1 Police Department Dispatcher 10 Police Department Parking Enforcement Aide 1 Police Department Administrative Support Specialist II 2 Fire & Rescue Department Fire Captain 3 Fire & Rescue Department Firefighter 6 Building and Codes Department Plan Examiner 1 Planning Department Principal Planner 1 Planning Department Administrative Support Specialist I 1 Street Department Director - Street 1 Street Department Equipment Operator -1 Street Department Laborer (Full time) 1 Street Department W/WW Maintenance Worker -3 Street Department Lead Landscaper/Greenskeeper 1 Street Department Landscaper/Greenskeeper 3 Information Technology Department GIS Analyst 1 Fleet Services Department Administrative Support Specialist II 1 Fleet Services Department Heavy Equipment Mechanic 1 Parks and Recreation Recreation Facility Coordinator 1 Parks and Recreation Assistant Recreation Facility Coordinator 1 Parks and Recreation Facility Maintenance Foreman 1 Parks and Recreation Custodian 1 Golf Course Irrigation Technician 1 Solid Waste Department Driver 1 Solid Waste Department Laborer 1 Airport Airport Manager 1 51  Schools Transfer 700,000 9,000,000 8,000,000 600,000 7,000,000 500,000 6,000,000 400,000 5,000,000 300,000 4,000,000 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 21 Budget FY 21 Actual FY 21 Cumulative FY 20 Cumulative Budgeted Transfers to City Schools is budgeted at $7.885M. 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 21 Budget FY 21 Actual FY 21 Cumulative FY 20 Cumulative The budgeted Debt Service Transfer decreased by $3.3M in FY21. This is due to debt payoff ($2.8M), refinanced debt (with budgeted savings of $236,600) and no new debt service for FY21.  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 21 Budget FY 21 Actual FY 21 Cumulative FY 20 Cumulative Repairs & Maintenance make up 7% of General Fund budgeted expenses. This includes maintenance of software ($1.2M), fleet services ($2.7M), and Police R&M for radios, mobile data terminals, etc. ($1.4M). State Street Aid R&M of streets, markings and right of way totals $4.4M. These expenses are seasonal and fluctuate depending on contract timing and timing of repairs. This was trending 62% under budget and 52% less than FY20 through July. Utilities 900,000 5,000,000 800,000 4,500,000 4,000,000 700,000 3,500,000 600,000 3,000,000 500,000 2,500,000 400,000 2,000,000 300,000 1,500,000 200,000 1,000,000 100,000 500,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 21 Budget FY 21 Actual FY 21 Cumulative FY 20 Cumulative Utilities were budgeted to stay relatively flat in FY20 as compared to FY19 and were running 14% under budget for the year through July.  Fixed Assets 4,000,000 8,000,000 3,500,000 7,000,000 3,000,000 6,000,000 2,500,000 5,000,000 2,000,000 4,000,000 1,500,000 3,000,000 1,000,000 2,000,000 500,000 1,000,000 - - JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN FY 21 Budget FY 21 Actual FY 21 Cumulative FY 20 Cumulative $13M budgeted for Fixed Assets in FY 21 includes: • $9.25M in Infrastructure for grant funded road construction • $1.4M – Transit Facility • $1.1M – Rover bus replacement (grant funded portion) • $111k software & computer hardware • $98k Recreation equipment • $436k public safety; Timing on spending in Fixed Assets is also seasonal and can fluctuate based on the construction schedules and delivery of equipment. Through July, fixed asset spending was relatively flast as compared to last year due to the City-wide non- essential spending freeze and timing of road construction projects funded through the Infrastructure Department.  JULY SAFETY REPORT Overall for the City, total incidents showed a 29% decrease over the same time period last year. The City is showing 11 possible COVID-19 related Workers Compensation claims. A claim is filed when an employee states that they may have been exposed to COVID-19 as part of their job duties. This is not a measure of COVID-19 testing. COVID-19 testing results will not be a part of this report.  BUILDING & CODES New Dwelling Units (Single Family, Townhomes & Apartments) 250 2,500 200 2,000 150 1,500 100 1,000 50 500 0 0 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE New Permits 198 0 0 0 0 0 0 0 0 0 0 0 Cumulative FY 21 198 Cumulative FY 20 127 282 520 838 1,009 1,298 1,433 1,532 1,728 1,878 1,999 2,147 July dwelling permits were up 56% as compared to FY20. Total Permits (all types) 1,400 14,000 1,200 12,000 1,000 10,000 800 8,000 600 6,000 400 4,000 200 2,000 - - JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE FY 21 Total Permits 1,155 - - - - - - - - - - - Cumulative FY 21 1,155 Cumulative FY 20 1,037 2,036 2,994 4,145 5,272 6,147 7,117 8,123 9,108 10,031 11,100 12,235 Total permits were trending up over last year by 11.4% through July.  Revenues 425,000 4,300,000 3,900,000 400,000 3,500,000 375,000 3,100,000 2,700,000 350,000 2,300,000 325,000 1,900,000 300,000 1,500,000 1,100,000 275,000 700,000 250,000 300,000 JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUNE FY 21 Monthly Revenues 407,829 0 0 0 0 0 0 0 0 0 0 0 407,829 407,829407,829407,829407,829407,829407,829407,829407,829407,829407,829407,829407,829 FY 20 Cumulative Revenues 314,210609,448943,2371,413,241,739,292,042,962,398,272,672,403,099,823,414,533,706,824,069,22 July Building & Code revenues increased by 30% as compared to last year.  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 Bradyville Pike 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 Bradyville Pike SE Broad St S Rutherford Blvd 2.10 Miles $10,570,000 (Est Cost) $0.00 0 0 0% 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 $3,419,212 (Est Cost) $0.00 0 0 0% Middle Tennessee Boulevard East Main Street Greenland Drive 0.8 Mile $15,986,859 $15,550,141 945 1148 121% 3/4/2019 1/11/2016 Robert Rose Right Turn Lane Robert Rose Thompson Lane 0.14 Mile $1,208,196 $390,485.37 150 134 0% 8/11/2020 3/30/2020 Rucker Lane Widening Highway 96 (Franklin Road) Veterans Parkway 2.5 Miles $13,200,000 (Est Cost) $0.00 0 0 0% Stones River Greenway Phase IV Barfield Road Barfield Crescent Park 2.65 Miles $5,445,977 $5,400,021 730 911 125% 3/10/2020 9/11/2017 Total $109,630,244 $21,340,647  Project Project Status / Comments Cherry Lane Phase II Alignment study for final enviromental review ongoing. ROW legal documents being drafted by consultant. Middle Tennessee Boulevard Working on close out documentation. Robert Rose Drive Contractor began working on footing for the retaining wall. Electric poles set. Rucker Lane Widening Bid 3/10/20, with Rogers Group being the apparent low bidder. Project on hold till further notice. Stones River Greenway Phase IV Punchlist completed. Change Order #5 pending. Project ROW Updates Bradyville Pike 12% of ROW Acquisition completed Cherry Lane Phase II On hold; under envrionmental review Cherry Lane Phase III Vendor selection pending Jones Blvd 87% ROW Acquisition completed  Project Tracking Ending Date 08/28/20 Project Cost (including approved Change Orders) Billed to Date 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 Siegel Soccer Renovations (Indoor Soccer Facility) Doug Young K9 Outdoor Training Replacement Hangar #1 Pareto Chart for Cumulative Percent of Annual Costs across all Cost Centers is in cells B2 through E3. Project Limits Project Cost (including Project Days (including Days Today / Substantial Construction Project Name Start Date Delivery Method Completion approved Change Billed to Date approved Change Percent Days Completion Orders) Orders) Remaining Opportunities Murfreesboro Municipal Airport Terminal 4/17/2019 Design Build 4/17/2020 $ 5,901,969.76 5,752,544.94 364 45 12% Working on Punch List Directional Signage Fire & Rescue Station #11 7/2/2019 Hard Bid 6/16/2020 $ 4,460,869.16 $ 4,336,003.67 350 0 0% Closing out financials N/A Police C.I.D Building Renovation 4/15/2020 Hard Bid 6 months 177,785.00 $ 85,492.50 180 165 Continued Framing None Siegel Soccer Renovations (Indoor Soccer Facility) 4/23/2020 Hard Bid 7 months $ 776,800.00 $0.00 N/A N/A N/A On Hold Funding Masonry Block and Doug Young K9 Outdoor Training 4/1/2020 Hard Bid 3 months $ 403,868.00 $ 24,566.40 120 115 0% None concrete complete Replacement Hangar #1 In Design Design Build 6 months $ 4,200,000.00 $ 93,553.99 210 0 0% Reviewing Contract Construction Cost #DIV/0! Total $15,921,291.92 $10,292,161.50