Receive a Staff presentation and hold discussion regarding the 2023-2024 Fiscal Year Proposed Budget, and the 2023-2024 Fiscal Year Capital Improvements Program; and provide direction to Staff.
Item 01: 2023-2024 Fiscal Year Proposed Budget & Capital Improvements Program
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JHughson
CoSM Members
Please post the document with the history of rate increases here.
Is the presentation above different from the packet?
"Signature Events - Continue to fund the successful events program established in the current fiscal year at same level of funding"
Please remind us of the amounts for each of Summer in the Park, Sacred Springs Powwow, Sights and Sounds of Christmas, and Mermaid Promenade and Faire
COMMUNITY ENHANCEMENT FUND
Why is personnel up by $100,000? Compensation implementation study shows only $25,000.
Still seeking list of what this fee funds.
Electric Utility "fund balance" which we state by # of days is down to 55 from 65 (last I saw). What is the plan to get back to at least 60, which was our standard.
Transit, revenues is missing at least one source.
Airport Contract increase of $90K. Do we make a decision on this or is this a requirement?
Is there a clause that increases the contract each year?
What is the new capital request?
Which, if any, of the CIP projects can be funded from existing balance of impact fees?
What is that balance?
What does "updated rankings" mean? What is the effect/end result of this action?
Wastewater up $7M. Info please.
Is the presentation above different from the packet?
"Signature Events - Continue to fund the successful events program established in the current fiscal year at same level of funding"
Please remind us of the amounts for each of Summer in the Park, Sacred Springs Powwow, Sights and Sounds of Christmas, and Mermaid Promenade and Faire
COMMUNITY ENHANCEMENT FUND
Why is personnel up by $100,000? Compensation implementation study shows only $25,000.
Still seeking list of what this fee funds.
Electric Utility "fund balance" which we state by # of days is down to 55 from 65 (last I saw). What is the plan to get back to at least 60, which was our standard.
Transit, revenues is missing at least one source.
Airport Contract increase of $90K. Do we make a decision on this or is this a requirement?
Is there a clause that increases the contract each year?
What is the new capital request?
Which, if any, of the CIP projects can be funded from existing balance of impact fees?
What is that balance?
What does "updated rankings" mean? What is the effect/end result of this action?
Wastewater up $7M. Info please.
Responses provided by Finance Director, Jon Locke & Director of Engineering & Capital Improvement, Shaun Condor:
Please post the document with the history of rate increases here. Posted.
Is the presentation above different from the packet? The presentation in the packet should be the same as the one attached here.
"Signature Events - Continue to fund the successful events program established in the current fiscal year at same level of funding"
Please remind us of the amounts for each of Summer in the Park, Sacred Springs Powwow, Sights and Sounds of Christmas, and Mermaid Promenade and Faire
Why is personnel up by $100,000? Compensation implementation study shows only $25,000.
There was a new Community Enhancement Technician added mid-year FY23. The FY23 Budget was increased to cover the prorated cost of the position. The full year cost is budgeted in FY24 and is the primary reason for the increase in personnel.
Still seeking list of what this fee funds.
Below is a short bulleted list from a previous presentation. More information can be provided, if needed.
Electric Utility "fund balance" which we state by # of days is down to 55 from 65 (last I saw). What is the plan to get back to at least 60, which was our standard.
Revenues have not kept pace with inflation and the rising cost to operate the electric system. Annual operating expenses included in the cash on hand calculation increased $8 million, from $65 million in FY23 to $73 million in FY24. Power cost is the largest single contributor to the increase, which is estimated to increase $5.6 million. The increase in operating expenses has a similar effect on the 60-day cash on hand requirement. The 60-day requirement increased from $10.8 million in FY23 to $12.1 million in FY24. The electric fund’s projected ending fund balance of $11 million is enough for the FY23 60-day cash on hand requirement and not for FY24. Increasing system revenues will assist by allowing less use of fund balance.
Transit, revenues is missing at least one source.
Below is a breakdown of the revenues included in the proposed budget:
Federal transit funds $1,445,716
City contribution $1,062,104
State transit funds $385,886
Vehicle grants $423,584
Fare revenue $50,000
Total revenues $3,367,290
Airport Contract increase of $90K. Do we make a decision on this or is this a requirement?
The contract with Texas Aviation Partners calls for a 2% annual increase with the base contract amount being $469,850 in Fiscal Year 2020. In FY 2024, the 2% increase equates to approximately $10K. Increasing to $90K will be a decision point for Council.
The contract requires Texas Aviation Partners to provide services including administration, operation, management, maintenance, marking, and development of the airport on the City’s behalf. It also requires them to provide the City an annual operating budget, including proposed staffing levels to provide these services. The airport is experiencing growth and the increase in the operator’s contract will allow additional staffing to assist with meeting the demands at the airport. Texas Aviation Partners has also been impacted by the high inflation over the past couple of years.
Is there a clause that increases the contract each year?
Yes, Section 6.1.1 states the contract amount will increase by 2% annually.
What is the new capital request?
The capital request is for a tractor and covered parking for the tractor. The airport does not currently own a tractor and the landscaping company is using their own tractor without a cab. Providing a tractor with a cab increases safety and will reduce the landscapers cost to maintain the grounds.
Which, if any, of the CIP projects can be funded from existing balance of impact fees? For FY 2024, we anticipate funding all $10M of project 571 WWTP Improvements and a portion of project 555 Highway 80 Utilities.
What is that balance?
As of today, we have just under $13M available in impact fees to fund FY 2024 CIP projects. $10M will go towards project 571 and the remaining balance will go towards project 555.
What does "updated rankings" mean? What is the effect/end result of this action? The criteria for rankings changed for the FY 2024 CIP from a scale of 0-70 to 0-10. A few projects were not properly updated to this new scale they were addressed with this revision. The updated rankings helped justify delaying a few projects and keeping a few projects funded in FY 2024.
Wastewater up $7M. Info please.
Staff has been working on addressing our need for an increased capacity to our wastewater treatment system; either a 2nd plant or upgrading the existing wastewater treatment plant. This additional funding is needed to push these improvements forward based of the latest schedule and costs associated with these improvements.
Please post the document with the history of rate increases here. Posted.
Is the presentation above different from the packet? The presentation in the packet should be the same as the one attached here.
"Signature Events - Continue to fund the successful events program established in the current fiscal year at same level of funding"
Please remind us of the amounts for each of Summer in the Park, Sacred Springs Powwow, Sights and Sounds of Christmas, and Mermaid Promenade and Faire
- Summer in the Park - $30,000 (Hotel Tax Fund)
- Sacred Springs Powwow - $33,000 (Hotel Tax Fund)
- Sights and Sounds of Christmas - $100,000 ($50K Hotel Tax Fund/ $50K General Fund)
- Mermaid Promenade and Faire - $25,000 ($12,500 Hotel Tax Fund/$12,500 General Fund)
Why is personnel up by $100,000? Compensation implementation study shows only $25,000.
There was a new Community Enhancement Technician added mid-year FY23. The FY23 Budget was increased to cover the prorated cost of the position. The full year cost is budgeted in FY24 and is the primary reason for the increase in personnel.
Still seeking list of what this fee funds.
Below is a short bulleted list from a previous presentation. More information can be provided, if needed.
- Community Enhancement Technicians: Graffiti abatement, illegal signs, dumping, and flyers/stickers, and abandoned homeless camps.
- Keep San Marcos Beautiful: Adopt a spot, environmental educational outreach, river cleanups, monthly and special litter cleanups, beautification maintenance and projects, and citywide certifications (Bird City, Scenic City, Bee City).
- Horticultural Team: Maintain 90,000 square feet of public beds with two-person team, create pollinator beds (supports the Mayors Monarch Pledge), and Certified Habitat Stewardship Program.
- Easter Seals: Roadway litter pickup, maintain medians, downtown sweeping, weekend/holiday litter pickup at river parks, mowing neighborhood parks and extra I-35 mowing.
- Code Enforcement Officers: Funds two Code Enforcement Officers that address unsafe structures and blight.
Electric Utility "fund balance" which we state by # of days is down to 55 from 65 (last I saw). What is the plan to get back to at least 60, which was our standard.
Revenues have not kept pace with inflation and the rising cost to operate the electric system. Annual operating expenses included in the cash on hand calculation increased $8 million, from $65 million in FY23 to $73 million in FY24. Power cost is the largest single contributor to the increase, which is estimated to increase $5.6 million. The increase in operating expenses has a similar effect on the 60-day cash on hand requirement. The 60-day requirement increased from $10.8 million in FY23 to $12.1 million in FY24. The electric fund’s projected ending fund balance of $11 million is enough for the FY23 60-day cash on hand requirement and not for FY24. Increasing system revenues will assist by allowing less use of fund balance.
Transit, revenues is missing at least one source.
Below is a breakdown of the revenues included in the proposed budget:
Federal transit funds $1,445,716
City contribution $1,062,104
State transit funds $385,886
Vehicle grants $423,584
Fare revenue $50,000
Total revenues $3,367,290
Airport Contract increase of $90K. Do we make a decision on this or is this a requirement?
The contract with Texas Aviation Partners calls for a 2% annual increase with the base contract amount being $469,850 in Fiscal Year 2020. In FY 2024, the 2% increase equates to approximately $10K. Increasing to $90K will be a decision point for Council.
The contract requires Texas Aviation Partners to provide services including administration, operation, management, maintenance, marking, and development of the airport on the City’s behalf. It also requires them to provide the City an annual operating budget, including proposed staffing levels to provide these services. The airport is experiencing growth and the increase in the operator’s contract will allow additional staffing to assist with meeting the demands at the airport. Texas Aviation Partners has also been impacted by the high inflation over the past couple of years.
Is there a clause that increases the contract each year?
Yes, Section 6.1.1 states the contract amount will increase by 2% annually.
What is the new capital request?
The capital request is for a tractor and covered parking for the tractor. The airport does not currently own a tractor and the landscaping company is using their own tractor without a cab. Providing a tractor with a cab increases safety and will reduce the landscapers cost to maintain the grounds.
Which, if any, of the CIP projects can be funded from existing balance of impact fees? For FY 2024, we anticipate funding all $10M of project 571 WWTP Improvements and a portion of project 555 Highway 80 Utilities.
What is that balance?
As of today, we have just under $13M available in impact fees to fund FY 2024 CIP projects. $10M will go towards project 571 and the remaining balance will go towards project 555.
What does "updated rankings" mean? What is the effect/end result of this action? The criteria for rankings changed for the FY 2024 CIP from a scale of 0-70 to 0-10. A few projects were not properly updated to this new scale they were addressed with this revision. The updated rankings helped justify delaying a few projects and keeping a few projects funded in FY 2024.
Wastewater up $7M. Info please.
Staff has been working on addressing our need for an increased capacity to our wastewater treatment system; either a 2nd plant or upgrading the existing wastewater treatment plant. This additional funding is needed to push these improvements forward based of the latest schedule and costs associated with these improvements.
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