HomeMy WebLinkAboutAgenda Packet City Council - 06/07/2011 (W)AGENDA
CITY OF CORPUS CHRISTI, TEXAS
CITY COUNCIL WORKSHOP MEETING
CITY HALL
1201 LEOPARD STREET
JUNE 7, 2011
1:30 PM
A. Mayor Joe Adame to call meeting to order. (t 32 p Adler - 1 v;
B. Roll Call. Pucicsc
Mayor Joe Adame
Mayor Pro Tem Nelda Martinez
Council Members: �
Chris Adler City Manager Ronald L. Olson V,
Larry Elizondo, Sr. City Attorney Carlos Valdez
Kevin Kieschnick City Secretary Armando Chapa
Priscilla Leal ,
John Marez �1. ecl i ' 54. I
Mark Scott
Linda Strong �t'4
C. PRESENTATION:
(Public comment will not be solicited on presentation item)
Presentation of FY 2011 -2012 Proposed Budget for the General Fund.
D. Adjournment. 4:z\
POSTING STATEMENT:
This agenda was posted on the City's official bulletin board at the front entrance to City Hall,
1201 Leopard Street at l: 30 am +g1 ��he_ 2 , 2011.
Armando Chapa
City Secretary
OEXED
CITY OF ORPUS
Texas HRISTI
FY 2011-2012
Proposed Budget
General Fund Presentation
June 7, 2011
C
DRAFT
Fiscal Year 2011-12 Proposed Budget
2
City of Corpus Christi
Property
Tax, $50,028,246, 25
%
Sales Tax;
$45,489,528, 23%
Industrial District;
$6,187,480, 3%
Franchise Fees;
$17,110,233, 9%
Solid Waste
Services;
$35,777,391, 18%
Municipal Court
Fees/Fines;
$4,997,940, 3%
Recreation/Intergov
/Other;
$15,014,996, 8%
Administrative
Charges;
$3,994,408, 2%
Public Safety
Services;
$14,271,216, 7%
Interfund;
$4,754,530, 2%
General Fund Revenues
Revenue Summary
•Sales Tax –The $.0825 sales tax for the City of Corpus Christi is
broken down as follows:
–State share $.0625
–Regional Transit Authority .005
–City General Fund .01
–Seawall .00125
–Arena .00125
–Economic Development .00125
–Crime Control District .00125
Total .0825
FY 12 projections are $4.4M (10.7%) higher than FY 11 budget. The
FY 12 budget was based on a 3.5% increase over the FY 11 estimate
after consideration of a $400K negative audit adjustment in Feb. 2011.
3City of Corpus Christi
Change in Sales Tax Collections
$3
2
,
3
5
1
,
1
5
4
$3
4
,
1
2
0
,
6
3
2
$3
6
,
3
6
7
,
5
7
4
$3
9
,
4
4
2
,
6
7
0
$4
2
,
0
8
2
,
3
9
8
$4
4
,
3
4
5
,
1
6
6
$4
4
,
4
1
6
,
1
6
3
$4
0
,
4
6
0
,
0
5
0
$4
3
,
5
4
6
,
7
3
0
$4
5
,
4
8
9
,
5
2
8
-1%
5%
7%8%
7%
5%
0%
-9%
8%
4%
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
$50,000,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
-10.00%
-8.00%
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
General Fund Percentage Change
Estimate Proposed
City of Corpus Christi 4
City Sales Tax Collections/Drivers
• City’s sales taxes are broken down into roughly:
–Retail Sales 44%
–Accommodation and Food Service 11%
–Information 9%
–Utilities 8%
–Other (Mining, Wholesale Trade, Manufacturing, etc.)
•Recently, sales taxes have shown a surge. Given data analysis and selected phone
calls with sales tax remitters, the primary driver appears to be related to the Eagleford
Shale play.
–No one is certain how long play will last (some estimate 5-10 years)
–Should oil prices plunge, play could abruptly end
–Rate of activity continues to increase with no estimates on when
activity may plateau
• Caveat, although Eagleford Shale has been a favorable driver, the higher fuel prices
have a negative effect on retail sales, which given above, could comprise the majority
of sales taxes.
–Needs to be monitored closely
–Budgeted conservatively
City of Corpus Christi 5
Revenue Summary (Cont.)
•Solid Waste Charges –Various fees to support
services delivered by the Solid Waste department
including Residential & Commercial garbage pick-
up, Refuse Disposal Charges for haulers, Recycling
fees and Municipal Solid Waste Service System
charges (MSWSSC).
FY 11 -$33,847,798 FY 11 (Est) -$33,865,898 FY 12 -$35,777,391 5.6% Inc
Revenue increases due to full year of recycle
fees, better than anticipated recycle participation
and a 5% increase in disposal charges.
6City of Corpus Christi
Revenue Summary (Cont.)
•Industrial District –Revenues in lieu of property taxes
received from companies located within Industrial District.
Taxes are paid on 100% of land value and a maximum of 60%
on improvements based on the year of use –6% in year 1
with annual escalations reaching 60% in year 9.
FY11 -$6,111,389 FY11(Est) -$6,145,808 FY12 -$6,187,480 .68% Inc
•Franchise Fees –Fees received from companies for right to
do business within City limits. Majority of revenue comes
from electric franchise fees, telecommunication fees and
cable TV fees. Electric franchise fees are based on
kwh, telecommunication fees are based on line charges and
cable TV fees are based on a % of revenue.
FY11 -$16,875,744 FY11(Est) -$16,958,182 FY12 -$17,110,233 .90% Inc
7City of Corpus Christi
Revenue Summary (Cont.)
•Municipal Court –consist of various court fines (moving
vehicle & parking), warrant fees and failure to appear
revenue.
FY 11 -$6,191,886 FY 11 (Est) -$5,255,322 FY 12 -$4,997,940 4.9% Dec
•Public Safety Services –consist of Police towing &
storage charges, Auction proceeds, Parking meter
collections, Alarm permits, 911 fees & Emergency call
revenue.
FY 11 -$13,619,759 FY 11 (Est) -$13,440,465 FY 12 -$14,271,216 6.2% Inc
8City of Corpus Christi
Revenue Summary (Cont.)
•Administrative Charges –charges to other funds for
General Fund support.
FY 11 -$4,332,904 FY 11 (Est) -$ 4,332,904 FY 12 -$3,994,408 7.8% Dec
•Interfund Charges –Charges to other funds for services
provided.
FY 11 -$11,268,713 FY 11 (Est) -$ 11,052,882 FY 12 -$4,754,530 57% Dec
Reduction largely due to $6.2M utility transfer in FY 11.
9City of Corpus Christi
Effective tax information
• Effective Tax Rate is a calculation that enables the public to
evaluate the relationship between taxes for the preceding
year and for the current year, based on a tax rate that would
produce the same amount of taxes if applied to the same
properties taxed in both years. Rate is based principally on:
• Current city valuation comparisons between tax years 2010
and 2011
–Adjusted for tax ceilings (65 or over and/or
disabled, etc.)
–Property valuation changes and court decisions
–Backs out any new growth in tax year 2011 (for
same basis as 2010.
• Official calculation is made by Tax Assessor usually in late
July thus current estimated rate will likely change based on
final certified roll
City of Corpus Christi 10
History of Net Taxable Values/Adopted Tax Rates
0.624
0.644
0.644
0.644
0.634
0.634
0.602
0.563
0.563
0.563
0.582
0.634
$0.52
$0.54
$0.56
$0.58
$0.60
$0.62
$0.64
$0.66
$1
$3
$5
$7
$9
$11
$13
$15
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Est.
Bi
l
l
i
o
n
s
Tax Year
City of Corpus Christi
11
History of Assessed Valuations
Tax
Year
Total Net
Values % Change New Growth % of Net
2000 7,652,057,403 2.54%145,304,509 1.90%
2001 8,029,325,055 4.93%154,277,569 1.92%
2002 8,426,656,727 4.95%147,526,737 1.75%
2003 8,947,896,398 6.19%157,308,722 1.76%
2004 9,639,561,772 7.73%212,973,052 2.21%
2005 10,488,024,828 8.80%276,420,033 2.64%
2006 11,421,305,918 8.90%280,797,998 2.46%
2007 13,110,832,851 14.79%470,218,968 3.59%
2008 13,813,335,014 5.36%372,150,208 2.67%
2009 14,400,609,740 4.54%314,049,537 2.18%
2010 13,900,137,536 (3.74%)207,407,185 1.49%
2011
Est.12,982,766,182 (6.6%)155,000,000 1.19%
City of Corpus Christi 12
EFFECTIVE TAX RATE (CITY ONLY)
TAX YEAR 2010:
Current: $.582269 in FY 10-11
(Effective was $.591301) in FY 10-11
TAX YEAR 2011:
Projected: $.634000 n FY 11 -12
Sample Single Family
Home Tax Value
$100,000
@ Tax Year 2010
Base
$93,400 est.
@ Tax Year
2011
w/6.6% decl.
from base
$106,600
Example of
6.6% incr.
Current 2010 Levy @
$.582269
$582 $543 $621
Effective Levy for Tax
Year 2010 @ $.591301
$591
2011 Levy @ $.634000 $592 $676
Tax Rate Implications
City of Corpus Christi 13
Fiscal Year 2011-12 Proposed Budget
•If Council desires to maintain the current rate of .582269
an additional $4,028,246 will need to be reduced from
proposed expenditures to balance the budget.
14City of Corpus Christi
Fiscal Year 2011 -12 Proposed Budget
General Government
1.32%
Engineering
3.13%
Legal
1.05%
Financial Services
2.10%Human Relations
0.21%
Human Resources
0.68%
Municipal Court
2.09%
Museum
0.66%
Fire
22.66%
Police
30.83%Health
1.96%
Libraries
1.73%
Parks & Recreation
6.70%
Street
5.45%
Neighborhood Svc
0.71%
Solid Waste
13.00%
Outside Agencies/Other
5.71%
General Fund Expenditures
City of Corpus Christi 15
City Attorney
Budget Budget
11 12
Personnel $1,729,940 $1,635,879
Operating $95,620 $95,620
Total $1,825,560 $1,731,499
•Provide “in-house corporate” legal advice to the City’s
officers, employees, department, commissions,
boards, committees, City created operations, and
other City established political entities. Funding
provided for Administrative Law, Litigation, Personnel
Law and Prosecutor’s Office.
FTE’s
FY11 FY12
25 23
City of Corpus Christi 16
Finance
Budget Budget
11 12
Personnel $2,837,247 $2,949,847
Operating $604,538 $526,039
Total $3,441,785 $3,475,886
• Consolidation of seven (7) existing payroll clerks as a result of the “Payroll Consolidation”
initiative in FY 2010 –2011, resulting in the elimination of nine (9) positions City-wide.
Also included is the elimination of one (1) FTE in the Director’s org and one (1) FTE in
Cash Management.
• Management & Budget will become more involved in efficiency studies and process
improvements
•Maintaining current service levels in other areas
FTE’s
FY11 FY12
54 59
City of Corpus Christi 17
General Government
Budget Budget
11 12
Personnel $1,619,744 $1,964,540
Operating $746,700 $210,771
Total $2,366,444 $2,175,311
•Includes Mayor, City Council, Internal Auditor, City Manager, City Secretary,
Intergovernmental Relations, Clean City, Public Information and Asst City Mgr of Admin
Services and Community Services
•(1) FTE decreased in Public Information
•3 positions are included in the newly created Internal Audit department as per the
November election
• Maintaining current service levels in other areas
FTE’s
FY11 FY12
14 16
City of Corpus Christi 18
Health
Budget Budget
11 12
Personnel $1,979,327 $1,697,171
Operating $428,500 $409,741
Total $2,407,827 $2,106,912
•8 FTE’s decreased at the Health Department –(1) Staff Assistant, (1) Public Health
Inspector I, (2) Public Health Administrator, (1) Sr. Management Assistant (1) Vector
Control Surveillance Tech I, (2) Vector Control Surveillance Tech II
•Increase Field Staff’s pay to 917 pay grade and cross-train Environmental, Vector and
Animal Control Staff to work interchangeably, will rotate staff between divisions which will
help alleviate stress from euthanasia duties, increase productivity, decrease employee
turnover; hours of operation may have to revert back to Monday thru Friday services.
•Increase 2 FTE’s –“Health Officers” to the Environmental, Vector and Animal Control
cross-trained section.
•Outsource Animal Control Adoptions to free up staff to work priority calls, bite cases, pick
up strays and tend to operational needs, better utilization of Vector staff during winter off
season period.
FTE’s
FY11 FY12
67 61
City of Corpus Christi 19
Human Resources
Budget Budget
11 12
Personnel $969,424 $887,945
Operating $132,644 $236,743
Total $1,102,068 $1,124,688
• 1 FTE decreased from Human Resources –(1) Human Resources Tech
• The service award program (pins) and the retirement recognition program (checks and
plaques) were eliminated
• Maintaining current service levels in other areas
• One time contribution from reserves to support movement to electronic records
maintenance
FTE’s
FY11 FY12
17 16
City of Corpus Christi 20
Human Relations
Budget Budget
11 12
Personnel $347,709 $308,048
Operating $43,242 $44,142
Total $390,951 $352,190
•Eliminated Director (executive pay plan) position and will replaced with an Administrator
position
• Delete Analyst (exempt) position and replace with ADA Compliance Officer (non-exempt)
position
•Maintain current service levels to include administrative support to the 16 member Human
Relations Commission and 9 member Committee for Persons With Disabilities
FTE’s
FY11 FY12
6 6
City of Corpus Christi 21
Libraries
Budget Budget
11 12
Personnel $2,117,619 $1,800,778
Operating $1,052,926 $1,062,325
Total $3,170,545 $2,863,103
•10.25 FTE’s decreased at Central Library –(1) Librarian, (1) Managing Librarian, (3) Library
Assistant II, (3) Library Aide, (5) Senior Library Aide
• Reduce hours of operation at Central Library, from 70 hours to 40 hours a week, Tuesday
through Saturday 10 a.m. to 6 p.m., due to reduction of FTE’s
•Except for the children’s services at Central Library, all other functions will remain the same
at a reduced level
•Operating hours will also be reduced at the five branches, from 64, 60 and 56 hours to
uniform schedule of 54 hours a week, Monday through Wednesday 10 a.m. to 8 p.m. and
Thursday through Saturday 10 a.m. to 6 p.m.
• The book budget at $406,000 is the highest annual appropriation ever
FTE’s
FY11 FY12
62.6 52.35
City of Corpus Christi 22
Museum
Budget Budget
11 12
Personnel $901,688 $759,034
Operating $337,519 $327,071
Total $1,239,207 $1,086,105
•3 FTE’s decreased from the Museum –(1) Sr. Management Assistant, (1) Archeologist, (1)
Museum Educator
•In 2010 the Archeologist completed a ten year field study that changes our understanding
about 8,000 years of pre-historic Native American life in south Texas. Analysis is not
complete and report has not been written and published
•Revenue reduction $6,000 –ending a 15 year agreement teaching anthropology
(archeology) at TAMU-CC
•The elimination of the Museum educator position results in a 20% reduction in public and
school education programming
FTE’s
FY11 FY12
20.4 17.4
City of Corpus Christi 23
Police
Budget Budget
11 12
Personnel $44,779,808 $43,675,271
Operating $5,864,409 $6,048,718
Capital $0 $1,200,000
Total $50,644,217 $50,923,989
•Conduct a Police Academy for 22 cadets scheduled to begin October 2011
•3 management assistants to perform duties currently performed by Police officers
•Fund the replacement of police package vehicles
•Assign a part-time clerk to the Police Property Room to expedite purging of property to insure
CALEA certification requirements are met
• Addition of 1 Parking Control Attendant funded by the parking meter enhancement program
•Re-design of school crossing guard program
FTE’s
FY11 FY12
635.50 633.92
City of Corpus Christi 24
Fire
Budget Budget
11 12
Personnel $33,694,133 $32,828,671
Operating $4,548,713 $4,589,565
Total $38,242,846 $37,418,236
•Warehouse at Holly Road to provide centralized support services
• Lease Purchase of 1 replacement pumper truck and 2 replacement ambulances
• 13 sworn positions are not funded
• Alternative hiring program to continue
FTE’s
FY11 FY12
429 429
City of Corpus Christi 25
Parks & Recreation
Budget Budget
11 12
Personnel $8,186,336 $7,323,318
Operating $3,454,137 $3,617,581
Capital $0 $127,000
Total $11,640,473 $11,067,899
•Continue to provide beach maintenance and beach safety at current level of service, $127K is
provided to address beach capital needs
•Reduced mowing at 50% of park areas throughout the City –develops categories of parks to
mow and frequency and establishes natural areas that are mowed infrequently. Budget
includes $36,750 for the Lease Purchase of Capital Equipment.
•Reduced sanitation in neighborhood parks from 5 days per week to 4 days
•Reduced athletic field and tennis center maintenance
•Reduction of Senior Center hours at Northwest, Broadmoor, Zavala, and Oveal Williams to four
hours per day.
•Open renovated HEB Pool, Close Joe Garza Pool and fill-in (mothball) Violet Pool
•FTE changes: Reduced 8.2 FTE’s during FY11 due to Payroll Consolidation and the
Privatization of Mowing; Proposing to reduce 14.84 FTE’s in FY12.
•Eliminate funding to Sister City Commission
FTE’s
FY11 FY12
263.23 240.19
City of Corpus Christi 26
Solid Waste
Budget Budget
11 12
Personnel $6,271,145 $5,774,880
Operating $14,239,904 $15,702,986
Total $20,511,049 $21,477,866
•Expanded recycling education and school outreach program to sustain and build on the new recycling
program
•Landfill gas to energy project ongoing
•Additional contracting of services at the Cefe Valenzuela Landfill to include scale house operations,
landscape irrigation, and mowing
•Conversion of 5 refuse collection vehicles from diesel fuel to compressed natural gas (CNG), reducing
fuel costs and vehicle maintenance costs
•Replacement of carts past 10 year warranty period
•Replacement and repair of mulching equipment at the J.C. Elliott Citizens Collection Center
•36 FTE’s positions reduced by going to once-a-week garbage pickup and automated recycling
FTE’s
FY11 FY12
176 140
City of Corpus Christi 27
Street
Budget Budget
11 12
Personnel $3,511,658 $3,372,499
Operating $5,981,433 $5,624,294
Total $9,493,091 $8,996,793
•$750,000 for Contract for Minor Street Pavement Improvements
•$250,000 for Lease Purchase of Capital Equipment
•Includes 625,000 Square Yards of Street Chip Seal
•Includes 58,000 Square Yards of Street Rework
•Reduced 2 FTE’s to 96 (result of Payroll and Safety Coordinator Citywide Consolidations)
FTE’s
FY11 FY12
98 96
City of Corpus Christi 28
Neighborhood Services
Budget Budget
11 12
Personnel $830,767 $814,845
Operating $238,443 $341,175
Capital $0 $20,000
Total $1,069,210 $1,176,020
•The Neighborhood Improvement Program and the Model Block Program will cease beginning August 1 st.
Funds will be re-programmed to city-wide code enforcement efforts. Enhanced code enforcement efforts will
be supported with $100,000 in additional funding.
•The Housing Division of Neighborhood Services will continue to create avenues for eligible citizens to access
affordable housing opportunities and provide homeowners the ability to bring needed repairs to their homes.
•The Community Development Division will continue to administer and support the Community Development
Block Grants (CDBG), Emergency Shelter Grants (ESG), and the Home Investment Partnership Program
(HOME).
•The Code Enforcement Division will continue to enforce the City of Corpus Christi’s ordinances as they apply
to the health and safety of the citizens of our community.
FTE’s
FY11 FY12
19.9 19.9
City of Corpus Christi 29
Engineering Services
Budget Budget
11 12
Personnel $1,330,117 $1,210,819
Operating $4,516,496 $3,954,016
Total $5,846,613 $5,164,835
•Traffic Engineering has designed Traffic Control plans for city emergencies and other departments such as cave ins,
municipal airport TCP and signage, CCPD parking lots, parades and other special events
•Traffic Engineering has designed geometric improvements for roadways
•The City’s signs and markings section are now part of the Traffic Engineering Division, making operations in the city
more efficient and cost effective
•Traffic Engineering was assigned the responsibility of verifying ADA placements in the roadway.
•The city Traffic Engineering has taken the responsibility of Construction project management on several projects (Bond
2004 signal project and seal coat project)
•Traffic Engineering has enhanced the application and payment process for all special events (on line, and updated the
“T” accounts)
•Traffic Engineering is proposing to eliminate 1 Technical Specialist position, 1 Engineering Assistant, 1 Crew Leader
and 2 Techs in Signs and Markings
FTE’s
FY11 FY12
18 24
City of Corpus Christi 30
Fiscal Year 2011-12 Proposed Budget
•The remaining schedule is as follows:
•June 14 –Enterprise funds
•June 21 –Debt Service/Special Revenue/ Internal
Service
•June 28 –Public Hearing
•July 12 –First Reading of Adoption Ordinance
•July 19 –Second Reading of Adoption Ordinance
•To be determined –Receipt of Certified Tax Roll
•To be determined –Adoption of Tax Rate
31City of Corpus Christi
•QUESTIONS?
32City of Corpus Christi