HomeMy WebLinkAboutAgenda Packet City Council - 03/22/2016 (R)City Council
Corpus Christi
Meeting Agenda - Final
1201 Leopard Street
Corpus Christi, TX 78401
cctexas.com
Watergarden Room
Museum of Science and History
1900 N. Chaparral Street
10:00 AMTuesday, March 22, 2016
SPECIAL CITY COUNCIL MEETING
2016 CITY COUNCIL RETREAT
Public Notice - - THE USE OF CELLULAR PHONES AND SOUND ACTIVATED PAGERS
ARE PROHIBITED DURING MEETINGS OF THE CITY COUNCIL.
Persons with disabilities who plan to attend this meeting and who may need auxiliary
aids or services are requested to contact the City Secretary’s office (at 361-826-3105)
at least 48 hours in advance so that appropriate arrangements can be made.
A.Mayor Nelda Martinez to call the meeting to order.
B.The Honorable Gail Loeb, Presiding Judge of the Municipal Court to conduct
Council Swearing In Ceremony.
C.City Secretary Rebecca Huerta to call the roll of the required Charter Officers.
D.Meeting Facilitator Toby Futrell to review Retreat Agenda and Council Book
Table of Contents.
E.City Manager Ron Olson to give Opening Comments.
F.City Secretary Rebecca Huerta to finalize the 2016 Council Meeting Calendar.
G.Deputy City Manager Margie Rose to report on 2015 Council Policy Priorities.
H.WORKING LUNCH BREAK
I.Director Kim Womack to provide a Communication Update.
J.EXPLANATION OF COUNCIL ACTION:
The following items contain resolutions that will be considered and voted on idividually.
1.16-0303 Resolution adopting City Manager's 3-Year Work Plans and Goals
Resolution of the Corpus Christi City Council to adopt the City
Manager's 3-Year Work Plans and Goals.
Resolution - CM 3-Year Work Plans and GoalsAttachments:
Page 1 Corpus Christi Printed on 3/21/2016
March 22, 2016City Council Meeting Agenda - Final
2.16-0304 Resolution amending the Financial Budgetary Policies
Resolution amending Financial Budgetary Policies adopted by
Resolution 030265 and providing financial policy direction on
preparation of the annual budgets.
Resolution (Clean Copy) - Financial Policies
Resolution (Redline) - Financial Policies
Attachments:
K.Meeting Facilitator Toby Futrell and City Attorney Miles Risley to initiate Type A
Sales Tax Ballot Language Discussion and request Motion of Direction.
L.BREAK
M.Meeting Facilitator Toby Futrell to discuss personal goals for Council members.
N.Meeting Facilitator Toby Futrell and City Manager Ron Olson to discuss
suggestions for Team Work and Policy Governance and request Motion of
Direction.
O.City Manager Ron Olson and Meeting Facilitator Toby Futrell to provide Retreat
Summary and Close
R.ADJOURNMENT
Page 2 Corpus Christi Printed on 3/21/2016
Resolution of the Corpus Christi City Council to adopt the
City Manager’s 3-Year Work Plans and Goals
Whereas, the City Manager’s 3-Year Work Plans and Goals were discussed and
deliberated at the City Council retreat on March 22, 2016
Now, therefore, be it resolved by the Corpus Christi City Council:
Section 1. That the City Manager’s 3-Year Work Plans and Goals, a copy of which is
attached as Exhibit A, is hereby adopted.
ATTEST:THE CITY OF CORPUS CHRISTI
_________________________________________________________
Rebecca Huerta Nelda Martinez
City Secretary Mayor
Corpus Christi, Texas
_________ of ___________________, 2016
The above resolution was passed by the following vote:
Nelda Martinez
Rudy Garza
Michael Hunter ________________
Chad Magill
Colleen McIntyre
Brian Rosas
Lucy Rubio
Mark Scott
Carolyn Vaughn
EXHIBIT A
1st Tier: City Manager’s Council Priority 3-Year Work Plan
Streets:
● Focus on 4th Quadrant of Residential Road Reconstruction
● Implementing Other 3 Quadrants:
1. Street Maintenance Program & User Fee Funding
2. Dedicated Bond Programs for Streets
3. Establishing Street Policies, Standards & Contractor Accountability
Water:
● Potential Future Supply – Desalination, Reuse, Ground Water & ASR
● Secure Water Quality
● Sanitary Sewer Overflow Initiative
● Broadway Plant
● Wastewater Treatment Plant Consolidation
● Storm Water Utility
Economic Development:
● Incentive Policies & Other Economic Development Policies
● Small Business Growth
● Plan CC 2035
● Infill
● Sprawl
● ETJ Annexation
● Downtown
● Infrastructure Replacement & Expansion
● Harbor Bridge
● Development Services Continuous Improvement
● Military
Communications Continuous Improvement
2nd Tier: City Manager’s Internal Operations 3-Year Work Plan
Daily Operations:
● Annual Business Plans
● Customer Satisfaction
● Performance Measurement & Reporting
● Benchmarking
Workforce Development:
● Compensation
● Training
● Labor Relations
Continuous Improvement:
● Department Evaluations & Efficiency Improvements
● Follow Up on Previous Department Plans
● New Department Plans:
● Finance
● Engineering
● Developing & Updating Policies & Procedures
Technology Improvements:
● Enterprise Resource Planning (ERP) – software used to manage and automate the
back office functions of finance, budget, utility billing & human resources.
● Municipal Court
● Development Services – also a part of ERP
3rd Tier: As Time Permits
Facilities:
● Execute Asset Management Plan
● New Facility Plans for:
● Jail
● Municipal Court
● Public Safety
Equipment Maintenance & Replacement Plan
Parks Master Plan
Homeless Policy & Services
Housing Policy
City Manager’s 3-Year Goals
1) Help the Council Work as a Team; To be Explicit About What They Want; To
Keep Them Focused
2) Resolve Residential Street Issue
3) Execute Entire Street Plan
4) Change Public Perception About Roads
5) Make Improvements to Engineering Department
6) Bring Actionable Conclusion to Desal
7) Clearly Define Our Long-Term Water Supply Plan
8) Resolve Broadway Treatment Plan Issues
9) Resolve SSOI Issue; Begin to Execute
10)Resolve Storm Water Utility Issues (After Streets are Adequately Addressed)
11)Execute Council Priority & Internal Operational 3-Year Work Plans
12)Work on 3rd Level Priorities as Time & Resources Allow
13)Continue to Communicate the City’s Message Through Internal & External
Resources
14)Train My Replacement
RESOLUTION
AMENDING FINANCIAL BUDGETARY POLICIES ADOPTED BY
RESOLUTION 030265 AND PROVIDING FINANCIAL POLICY
DIRECTION ON PREPARATION OF THE ANNUAL BUDGETS.
WHEREAS,the City of Corpus Christi has a commitment to citizens as expressed in its
Mission Statement: “Provide exceptional service to enhance the quality of life”; and
WHEREAS,financial resources are budgeted to fulfill this commitment; and
WHEREAS,it has been the City’s goal to rebuild the General Fund balance to
acceptable levels, a goal which was expressly stated in past policies with targets for
accomplishing that goal; and
WHEREAS,the City Council adopted a Financial Policy in January 1997 by Resolution
No. 022828, reaffirmed the Financial Policy in June 1997 by Resolution No. 022965,
modified the Financial Policy in July 1997 by Resolution No. 022992, adopted a new
Financial Policy in May 1998 by Resolution No. 023319; reaffirmed the Financial Policy
in May 1999 by Resolution No. 023657; reaffirmed the Financial Policy in May 2000 by
Resolution No. 024044; reaffirmed the Financial Policy in May 2001 by Resolution No.
024455; reaffirmed the Financial Policy in May 2002 by Resolution No. 024863;
reaffirmed the Financial Policy in April 2003 by Resolution No. 025280; reaffirmed the
Financial Policy in April 2004 by Resolution No. 025737; reaffirmed the Financial Policy
in May 2005 by Resolution 026265; reaffirmed the Financial Policy in January 2006 by
Resolution 026605; amended the Financial Policy in April 2008 by Resolution 027683;
amended the Financial Policy in May 2009 by Resolution 028176; amended the policy
in May 2010 by Resolution 028609; amended the policy in July 2011 by Resolution
029128; amended the policy in May 2012 by Resolution 029521; amended the policy in
May 2013 by Resolution 029826; amended the policy in June 2013 by Resolution
029848; and amended the policy in August 2014 by Resolution 030265.
WHEREAS,as a result of those policies, the City achieved its previous goal for the
General Fund balance and desires now to articulate a new strategy to maintain a
revised General fund balance and to utilize any surplus balance to provide for enhanced
financial stability in future years, and also desires to establish similar goals for fund
balances of the Internal Service Funds, Enterprise Funds, the Combined Utility Reserve
Fund, and Debt Service Reserve Funds; and
WHEREAS, this policy provides an essential guide to direct financial planning and to
maintain and strengthen the City’s bond rating; and
WHEREAS, it has been the City’s practice to reaffirm its financial policy or to adopt new
or modified policy annually in conjunction with preparation of the budget.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
2
The Financial Budgetary Policies adopted by Resolution 030265 are amended to read
as follows:
Section 1. Development / Effective Date of Financial Budgetary Policy. This
Financial Budgetary Policy reaffirms and amends the financial policies adopted each
year by the City Council since 1997. This Financial Budgetary Policy is made part of
the City Comprehensive Policy Manual. The City Manager is directed to prepare each
annual proposed budget in accordance with this policy. The City Council is prepared to
make expenditure reductions that may be necessary to comply with this policy. This
Financial Budgetary policy remains in effect and applies to future annual budget
preparation processes until amended by City Council resolution.
Section 2. Current Revenues Equal / Exceed Current Expenditures. Current
General Fund operating revenues will equal or exceed current budgeted expenditures.
Section 3. Committed General Fund Balance / Working Capital. To ensure that
current and future services or operations are not severely impacted by any economic
slowdowns, emergencies, natural disasters or other unforeseen circumstances,
adequate financial resources will be set aside in the General Fund committed fund
balance. In the Government Finance Officers Association’s (GFOA) “Best Practice for
Determining the Appropriate Level of Unrestricted Fund Balance in the General Fund
(2015)”, GFOA recommends, at a minimum, that general-purpose government,
regardless of size, maintain an unrestricted budgetary fund balance in their general fund
of no less than two months of regular general fund operating revenues or regular
general fund operating expenditures. Accordingly it is the goal of the City Council to
build and maintain a reserve in the General Fund committed fund balance which totals
at least two months (or approximately 16%) of regular general fund operating revenues
or regular general fund operating expenditures up to 25% of total annual General Fund
appropriations, exclusive of any one-time appropriations. At the end of the fiscal year,
upon completion of the Comprehensive Annual Financial Report, the amount calculated
to be at least two months of regular general fund operating revenues or regular general
fund operating expenditures up to 25% of total annual General Fund appropriations will
be Committed for Major Contingencies, and set up in a separate account. The City
Manager shall report on the status of compliance with this policy at least annually as
part of the budget process. Uncommitted fund balance in excess of the policy
requirement may be recommended for expenditure by the City Manager. Such
expenditures shall be subject to the normal appropriations and expenditure approval
process applicable to all other funds. Finally, it is noted that extraordinary situations
may arise in which the timing of external actions out of the City’s control may require the
use of the committed funds. The City Manager shall note these situations to the City
Council as soon as the information is known.
Amounts that can be used for specific purposes pursuant to constraints imposed by
formal action of the City Council will be reported as committed fund balance. Those
committed amounts cannot be used for any other purpose unless the City Council
removes or changes the specified use by taking the same type of action it employed to
previously commit those amounts. Committed fund balance will also incorporate
3
contractual obligations to the extent that existing resources in the fund have been
specifically committed for use in satisfying those contractual requirements.
Section 4. Other Committed Fund Balances.
4.1 Internal Service Funds. To ensure that current and future services or operations
are not severely impacted by any economic slowdowns, emergencies, natural disasters
or other unforeseen circumstances, it is the goal of the City Council to build and
maintain a reserve in each Internal Service Fund of at least three percent (3%) of the
annual Internal Service Fund appropriations, exclusive of any one-time appropriations.
This subsection only applies to the MIS Internal Service Fund; Stores Internal Service
Fund; Engineering Services Internal Service Fund; and Maintenance Services Internal
Service Fund.
4.2 Group Health Plans. It is a goal of the City to maintain a fund balance in the group
health plans to (1) pay any associated administrative costs and claims run-out based
upon the most recent actuarial study in the event the plan ceases or a change in the
third party administrator is made; and to (2) cover any differences between revenues
budgeted to cover projected claims expense for the fiscal year and the attachment point
calculated at 110% of projected claims expense as a catastrophic reserve.
4.3 General Liability Fund. It is a goal of the City to maintain a fund balance in the
General Liability Fund (1) to fund long-term liabilities, incurred but not reported
expenses (IBNR), and a risk margin for the adverse development of claims as
determined by the actuarial recommendation and reflected in the Comprehensive
Annual Financial Report; (2) to provide additional protection against significant
unexpected claims experience in the fiscal year as a catastrophic reserve equaling 25%
of the average incurred costs of claims experience over the prior five-year period; and
(3) to protect against significant cost increases in the fiscal year for purchased
insurance coverage premiums equaling 25% of the cost for purchased insurance over
the prior year.
4.4 Worker’s Compensation Fund. It is a goal of the City to maintain a fund balance
in the Worker’s Compensation Fund (1) to fund long-term liabilities, incurred but not
reported expenses (IBNR), and a risk margin for the adverse development of claims as
determined by the actuarial recommendation and reflected in the Comprehensive
Annual Financial Report; and (2) to protect against significant unexpected claims
experience in the fiscal year as a catastrophic reserve equaling 25% of the average of
incurred costs of claims experience over the prior five-year period.
4.5 Enterprise Funds. To ensure that current and future services or operations are
not severely impacted by any economic slowdowns, emergencies, natural disasters or
other unforeseen circumstances, it is the goal of the City Council to build and maintain a
reserve in each of the Enterprise Funds of at least twenty-five percent of the annual
Enterprise Fund appropriations, exclusive of debt service and any one-time
appropriations. This subsection only applies to Water, Wastewater, Gas, Stormwater,
Airport, and Marina fund balances.
4
4.6 Debt Service Reserve Fund. The City will strive to maintain a debt service fund
balance for bonds, certificates of obligation, tax notes, and other debt instruments of at
least two percent (2%) of the annual debt service appropriation(s) for the fiscal year;
provided, however, this requirement shall comply with the provision of Treasury
Regulation 1.148-2(f) which limits the amount of reserve funds that may secure the
payment of debt service on bonds.
Section 5. Property Tax Rate for Operations and Maintenance. Each proposed
annual budget shall be prepared assuming that the City will be adopting a tax rate
necessary to be in compliance with Section 2 above. Full consideration will be given
to achieving the “effective tax rate” for maintenance and operations when assessed
property values decrease, and full consideration will be giving to maintaining the current
tax rate when assessed properties values increase, as long as the tax rate does not
exceed the “rollback” rate (which is the rate that allows the City to raise the same
amount of maintenance and operation revenue raised in the prior year with an 8%
increase.)
Section 6. Funding Level from General Fund for Street Maintenance. City Council
approved Resolution #029634 on September 18, 2012 to declare its intent to establish a
street user fee for implementation in Fiscal Year 2013-2014. Section 4 of this resolution
expressed an intent to preserve the funding level of the Street Department at the
percentage of the Street Fund’s budget in Fiscal Year 2012-2013 relative to the General
Fund. Excluding a decrease in General Fund revenues, the percentage of the Street
Fund’s budget relative to the General Fund will neither go below that of Fiscal Year
2012-2013 nor go below the dollar equivalent if General Fund revenues increase. That
funding level equates to 6.00% of General Fund revenue less grants from the annual
adopted operating budget or $10,818,730, whichever is greater. Beginning in Fiscal
Year 2015-2016, the funding level will be 6% of General Fund revenue less grants and
industrial district revenue or $10,818,730, whichever is greater. Additionally beginning
in Fiscal Year 2015-2016, 5% of industrial district revenue will be transferred to the
Street Maintenance Fund.
Section 7. Funding Level from General Fund for Residential/Local Street Capital
Improvement Projects. In order to develop a long-term funding mechanism for capital
improvements related to residential/local streets, implement the following:
1. For 3 years beginning in Fiscal Year 2014-2015, appropriate $1,000,000
each year from the uncommitted fund balance of the General Fund and
transfer to the Residential/Local Street Capital Fund.
2. Beginning in Fiscal Year 2015-2016, appropriate and transfer 5% of
industrial district revenue to the Residential/Local Street Capital Fund.
3. In Fiscal Year 2020-2021, transfer 1/3 of one percent of the General Fund
revenue less grants and industrial district revenue to the Residential/Local
Street Capital Fund.
5
4.In Fiscal Year 2021-2022, transfer 2/3 of one percent of the General Fund
revenue less grants and industrial district revenue to the Residential/Local
Street Capital Fund.
5.In Fiscal Year 2022-2023 and thereafter, transfer 1% of the General Fund
revenue less grants and industrial district revenue to the Residential/Local
Street Capital Fund.
Section 8. Funding of Texas Municipal Retirement System (TMRS) Contributions.
It is a goal of the City Council to contribute the fully funded contribution rate to TMRS to
fund the general City employees’ and sworn police officers’ pension. In order to
implement this goal, beginning in Fiscal Year 2014-2015, an additional 2% will be added
to the City’s contribution to TMRS each year until the actuarially determined fully funded
rate is met.
Section 9. Priority of City Services. The City Council recognizes the need to provide
public services which support the continued growth of the local economy and personal
income growth to insure an adequate financial base for the future.
Section 10. Operating Contingencies. The City Manager is directed to budget at
least $200,000 per year as an operating contingency as part of General Fund
expenditures in order to further insulate the General Fund unreserved fund balance
from unforeseen circumstances. The City Manager is directed to budget similar
operating contingencies as expenditures in enterprise, internal service, and special
revenue funds of the City.
Section 11. Multi-year Budget Model. Whereas many of the City’s fiscal goals
require commitment and discipline beyond the one year considered within the City’s
fiscal year, the City will also consider adoption of business plans necessary for the
accomplishment of City short term or long term goals. These business plans will be
presented and recommended to the City Council in the proposed annual operating
budget and shall be used for development of future budget recommendations as
necessary to accomplish these goals. The City shall also maintain business plans
and/or rate models for enterprise operations. Preparation of annual budget will include
model for years two and three, with specific revenue and expenditure assumptions.
Section 12. Cost Recovery. The City may recover costs in the General Fund by
charging other funds for administrative costs incurred to support their operations. The
City shall attempt to pursue and maintain a diversified and stable revenue stream for the
General Fund in order to shelter finances from short term fluctuations in any one
revenue source. In order to meet the requirements outlined herein, every effort will be
made to base rates on a cost of service model so costs incurred for certain services are
paid by the population benefiting from such services.
Section 13. Quarterly Financial Reporting and Monitoring. The City Manager shall
provide interim financial performance reports and updates to the City Council on a
6
quarterly basis. These interim reports must include detailed year to date revenue and
expenditure estimates, as well as explanations for major variances to budget. The
format of the quarterly report must be relatively consistent with the adopted budget.
Section 14. Use of Nonrecurring Revenue. The City shall endeavor to use
nonrecurring revenue to fund one-time expenditures. Nonrecurring revenue may
include items such as sale of fixed assets, court settlements, or revenue collection
windfalls.
Section 15. Debt Management. The City Manager shall adhere to the Debt
Management Policy adopted by Resolution 028902 on December 14, 2010, and
reaffirmed by Resolution 029321 on December 13, 2011.
Section 16. Capital Improvement Plans/Funding. The annual Capital Improvement
Plan shall follow the same cycle as the Operating Budget. As part of the annual capital
budget process, the City shall update its short and long range capital improvement
plans. For the three-year short term plan, projects include any projected incremental
operating costs for programmed facilities. The long range plan extends for an additional
seven years, for a complete plan that includes ten years. Short-term plan projects must
be fully funded, with corresponding resources identified. As part of a concerted effort to
reduce debt levels and improve financial flexibility, the City shall pursue pay-as-you-go
capital funding where possible.
Section 17. Expenditures. Within the limitation of public service needs, statutory
requirements and contractual commitments expenditures included in the operating
budget shall represent the most cost efficient method to deliver services to the citizens
of Corpus Christi. Efforts to identify the most cost efficient method of service delivery
shall continue during the fiscal year after the operating budget is adopted and may be
implemented during the fiscal year as necessary and of benefit to the public.”
Section 18. Zero Based Budgeting type of process. To prepare the City’s operating
budget, the City shall utilize a Zero Based Budgeting type of process. The staff shall
be accountable for utilizing a Zero Based Budgeting type of process comprehensively
for all department budgets.
Section 19. A State Hotel Occupancy Tax (HOT) Fund. A state HOT Fund was
created for the Fiscal Year (FY) 2015-16 budget as a result of the Texas 84th
Legislature’s (2015) House Bill (HB)1915 that allowed Corpus Christi and three other
Texas cities to retain 2% of the state hotel occupancy taxes collected by the cities to be
reinvested for beach maintenance and restoration. The expenditures in this Fund shall
not be used to offset expenditures for Gulf Beach maintenance currently paid for out of
the local HOT Fund. The funding for Gulf Beach maintenance in the local HOT Fund
shall not fall below the lesser of $1,825,088 or 15% of HOT revenue (not including the
Convention Expansion portion) budgeted. This amount will be in addition to any
expenditures budgeted for Gulf Beach Maintenance in the State HOT Fund.
7
ATTEST:THE CITY OF CORPUS CHRISTI
_________________________________________________________
Rebecca Huerta Nelda Martinez
City Secretary Mayor
8
Corpus Christi, Texas
_________ of __________________, ____________
The above resolution was passed by the following vote:
Nelda Martinez ______________
Rudy Garza ______________
Michael Hunter ______________
Chad Magill ______________
Colleen McIntyre ______________
Brian Rosas
Lucy Rubio
Mark Scott
Carolyn Vaughn
RESOLUTION
AMENDING FINANCIAL BUDGETARY POLICIES ADOPTED BY
RESOLUTION 029848 030265 AND PROVIDING FINANCIAL POLICY
DIRECTION ON PREPARATION OF THE ANNUAL BUDGETS.
WHEREAS, the City of Corpus Christi has a commitment to citizens as expressed in its
Mission Statement: “Provide exceptional service to enhance the quality of life”; and
WHEREAS, financial resources are budgeted to fulfill this commitment; and
WHEREAS, it has been the City’s goal to rebuild the General Fund balance to
acceptable levels, a goal which was expressly stated in past policies with targets for
accomplishing that goal; and
WHEREAS, the City Council adopted a Financial Policy in January 1997 by Resolution
No. 022828, reaffirmed the Financial Policy in June 1997 by Resolution No. 022965,
modified the Financial Policy in July 1997 by Resolution No. 022992, adopted a new
Financial Policy in May 1998 by Resolution No. 023319; reaffirmed the Financial Policy
in May 1999 by Resolution No. 023657; reaffirmed the Financial Policy in May 2000 by
Resolution No. 024044; reaffirmed the Financial Policy in May 2001 by Resolution No.
024455; reaffirmed the Financial Policy in May 2002 by Resolution No. 024863;
reaffirmed the Financial Policy in April 2003 by Resolution No. 025280; reaffirmed the
Financial Policy in April 2004 by Resolution No. 025737; reaffirmed the Financial Policy
in May 2005 by Resolution 026265; reaffirmed the Financial Policy in January 2006 by
Resolution 026605; amended the Financial Policy in April 2008 by Resolution 027683;
amended the Financial Policy in May 2009 by Resolution 028176; amended the policy
in May 2010 by Resolution 028609; amended the policy in July 2011 by Resolution
029128; amended the policy in May 2012 by Resolution 029521; amended the policy in
May 2013 by Resolution 029826; and amended the policy in June 2013 by Resolution
029848; and amended the policy in August 2014 by Resolution 030265.
WHEREAS, as a result of those policies, the City achieved its previous goal for the
General Fund balance and desires now to articulate a new strategy to maintain a
revised General fund balance and to utilize any surplus balance to provide for enhanced
financial stability in future years, and also desires to establish similar goals for fund
balances of the Internal Service Funds, Enterprise Funds, the Combined Utility Reserve
Fund, and Debt Service Reserve Funds; and
WHEREAS, this policy provides an essential guide to direct financial planning and to
maintain and strengthen the City’s bond rating; and
WHEREAS, it has been the City’s practice to reaffirm its financial policy or to adopt new
or modified policy annually in conjunction with preparation of the budget.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
CORPUS CHRISTI, TEXAS:
2
The Financial Budgetary Policies adopted by Resolution 029848 030265 are amended
to read as follows:
Section 1. Development / Effective Date of Financial Budgetary Policy. This
Financial Budgetary Policy reaffirms and amends the financial policies adopted each
year by the City Council since 1997. This Financial Budgetary Policy is made part of
the City Comprehensive Policy Manual. The City Manager is directed to prepare each
annual proposed budget in accordance with this policy. The City Council is prepared to
make expenditure reductions that may be necessary to comply with this policy. This
Financial Budgetary policy remains in effect and applies to future annual budget
preparation processes until amended by City Council resolution.
Section 2. Current Revenues Equal / Exceed Current Expenditures. Current
General Fund operating revenues will equal or exceed current budgeted expenditures.
Section 3. Committed General Fund Balance / Working Capital. To ensure that
current and future services or operations are not severely impacted by any economic
slowdowns, emergencies, natural disasters or other unforeseen circumstances,
adequate financial resources will be set aside in the General Fund committed fund
balance. In the Government Finance Officers Association’s (GFOA) “Best Practice for
Determining the Appropriate Level of Unrestricted Fund Balance in the General Fund
(2015)”, GFOA recommends, at a minimum, that general-purpose government,
regardless of size, maintain an unrestricted budgetary fund balance in their general fund
of no less than two months of regular general fund operating revenues or regular
general fund operating expenditures. Accordingly it is the goal of the City Council to
build and maintain a reserve in the General Fund committed fund balance which totals
at least ten (10%) percent two months (or approximately 16%) of regular general fund
operating revenues or regular general fund operating expenditures up to 25% of total
annual General Fund appropriations, exclusive of any one-time appropriations. At the
end of the fiscal year, upon completion of the Comprehensive Annual Financial Report,
the amount calculated to be at least two months of regular general fund operating
revenues or regular general fund operating expenditures up to 25% of total annual
General Fund appropriations will be Committed for Major Contingencies, and set up in a
separate account. The City Manager shall report on the status of compliance with this
twenty-five (25%) percent policy at least annually as part of the budget process.
Uncommitted fund balance in excess of the ten percent policy requirement may be
recommended for expenditure by the City Manager. Such expenditures shall be subject
to the normal appropriations and expenditure approval process applicable to all other
funds. Finally, it is noted that extraordinary situations may arise in which the timing of
external actions out of the City’s control may require the use of the committed funds.
The City Manager shall note these situations to the City Council as soon as the
information is known.
Amounts that can be used for specific purposes pursuant to constraints imposed by
formal action of the City Council will be reported as committed fund balance. Those
committed amounts cannot be used for any other purpose unless the City Council
removes or changes the specified use by taking the same type of action it employed to
3
previously commit those amounts. Committed fund balance will also incorporate
contractual obligations to the extent that existing resources in the fund have been
specifically committed for use in satisfying those contractual requirements.
Section 4. Other Committed Fund Balances.
4.1 Internal Service Funds. To ensure that current and future services or operations
are not severely impacted by any economic slowdowns, emergencies, natural disasters
or other unforeseen circumstances, it is the goal of the City Council to build and
maintain a reserve in each Internal Service Fund of at least three percent (3%) of the
annual Internal Service Fund appropriations, exclusive of any one-time appropriations.
This subsection only applies to the MIS Internal Service Fund; Stores Internal Service
Fund; Engineering Services Internal Service Fund; and Maintenance Services Internal
Service Fund.
4.2 Group Health Plans. It is a goal of the City to maintain a fund balance in the group
health plans to (1) pay any associated administrative costs and claims run-out based
upon the most recent actuarial study in the event the plan ceases or a change in the
third party administrator is made; and to (2) cover any differences between revenues
budgeted to cover projected claims expense for the fiscal year and the attachment point
calculated at 110% of projected claims expense as a catastrophic reserve.
4.3 General Liability Fund. It is a goal of the City to maintain a fund balance in the
General Liability Fund (1) to fund long-term liabilities, incurred but not reported
expenses (IBNR), and a risk margin for the adverse development of claims as
determined by the actuarial recommendation and reflected in the Comprehensive
Annual Financial Report; (2) to provide additional protection against significant
unexpected claims experience in the fiscal year as a catastrophic reserve equaling 25%
of the average incurred costs of claims experience over the prior five-year period; and
(3) to protect against significant cost increases in the fiscal year for purchased
insurance coverage premiums equaling 25% of the cost for purchased insurance over
the prior year.
4.4 Worker’s Compensation Fund. It is a goal of the City to maintain a fund balance
in the Worker’s Compensation Fund (1) to fund long-term liabilities, incurred but not
reported expenses (IBNR), and a risk margin for the adverse development of claims as
determined by the actuarial recommendation and reflected in the Comprehensive
Annual Financial Report; and (2) to protect against significant unexpected claims
experience in the fiscal year as a catastrophic reserve equaling 25% of the average of
incurred costs of claims experience over the prior five-year period.
4.5 Enterprise Funds. To ensure that current and future services or operations are
not severely impacted by any economic slowdowns, emergencies, natural disasters or
other unforeseen circumstances, it is the goal of the City Council to build and maintain a
reserve in each of the Enterprise Funds of at least twenty-five percent of the annual
Enterprise Fund appropriations, exclusive of debt service and any one-time
4
appropriations. This subsection only applies to Water, Wastewater, Gas, Stormwater,
Airport, and Marina fund balances.
4.6 Debt Service Reserve Fund. The City will strive to maintain a debt service fund
balance for bonds, certificates of obligation, tax notes, and other debt instruments of at
least two percent (2%) of the annual debt service appropriation(s) for the fiscal year;
provided, however, this requirement shall comply with the provision of Treasury
Regulation 1.148-2(f) which limits the amount of reserve funds that may secure the
payment of debt service on bonds.
Section 5. Property Tax Rate for Operations and Maintenance. Each proposed
annual budget shall be prepared assuming that the City will be adopting a tax rate
necessary to be in compliance with Section 2 above. Full consideration will be given
to achieving the “effective tax rate” for maintenance and operations when assessed
property values decrease, and full consideration will be giving to maintaining the current
tax rate when assessed properties values increase, as long as the tax rate does not
exceed the “rollback” rate (which is the rate that allows the City to raise the same
amount of maintenance and operation revenue raised in the prior year with an 8%
increase.)
Section 6. Funding Level from General Fund for Street Maintenance. City Council
approved Resolution #029634 on September 18, 2012 to declare its intent to establish a
street user fee for implementation in Fiscal Year 2013-2014. Section 4 of this resolution
expressed an intent to preserve the funding level of the Street Department at the
percentage of the Street Fund’s budget in Fiscal Year 2012-2013 relative to the General
Fund. Excluding a decrease in General Fund revenues, the percentage of the Street
Fund’s budget relative to the General Fund will neither go below that of Fiscal Year
2012-2013 nor go below the dollar equivalent if General Fund revenues increase. That
funding level equates to 6.00% of General Fund revenue less grants from the annual
adopted operating budget or $10,818,730, whichever is greater. Beginning in Fiscal
Year 2015-2016, the funding level will be 6% of General Fund revenue less grants and
industrial district revenue or $10,818,730, whichever is greater. Additionally beginning
in Fiscal Year 2015-2016, 5% of industrial district revenue will be transferred to the
Street Maintenance Fund.
Section 7. Funding Level from General Fund for Residential/Local Street Capital
Improvement Projects. In order to develop a long-term funding mechanism for capital
improvements related to residential/local streets, implement the following:
1. For 3 years beginning in Fiscal Year 2014-2015, appropriate $1,000,000
each year from the uncommitted fund balance of the General Fund and
transfer to the Residential/Local Street Capital Fund.
2. Beginning in Fiscal Year 2015-2016, appropriate and transfer 5% of
industrial district revenue to the Residential/Local Street Capital Fund.
5
3. In Fiscal Year 2020-2021, transfer 1/3 of one percent of the General Fund
revenue less grants and industrial district revenue to the Residential/Local
Street Capital Fund.
4. In Fiscal Year 2021-2022, transfer 2/3 of one percent of the General Fund
revenue less grants and industrial district revenue to the Residential/Local
Street Capital Fund.
5. In Fiscal Year 2022-2023 and thereafter, transfer 1% of the General Fund
revenue less grants and industrial district revenue to the Residential/Local
Street Capital Fund.
Section 8. Funding of Texas Municipal Retirement System (TMRS) Contributions.
It is a goal of the City Council to contribute the fully funded contribution rate to TMRS to
fund the general City employees’ and sworn police officers’ pension. In order to
implement this goal, beginning in Fiscal Year 2014-2015, an additional 1% 2% will be
added to the City’s contribution to TMRS each year until the actuarially determined fully
funded rate is met.
Section 9. Priority of City Services. The City Council recognizes the need to provide
public services which support the continued growth of the local economy and personal
income growth to insure an adequate financial base for the future.
Section 10. Operating Contingencies. The City Manager is directed to budget at
least $200,000 per year as an operating contingency as part of General Fund
expenditures in order to further insulate the General Fund unreserved fund balance
from unforeseen circumstances. The City Manager is directed to budget similar
operating contingencies as expenditures in enterprise, internal service, and special
revenue funds of the City.
Section 11. Multi-year Budget Model. Whereas many of the City’s fiscal goals
require commitment and discipline beyond the one year considered within the City’s
fiscal year, the City will also consider adoption of business plans necessary for the
accomplishment of City short term or long term goals. These business plans will be
presented and recommended to the City Council in the proposed annual operating
budget and shall be used for development of future budget recommendations as
necessary to accomplish these goals. The City shall also maintain business plans
and/or rate models for enterprise operations. Preparation of annual budget will include
model for years two and three, with specific revenue and expenditure assumptions.
Section 12. Cost Recovery. The City may recover costs in the General Fund by
charging other funds for administrative costs incurred to support their operations. The
City shall attempt to pursue and maintain a diversified and stable revenue stream for the
General Fund in order to shelter finances from short term fluctuations in any one
revenue source. In order to meet the requirements outlined herein, every effort will be
made to base rates on a cost of service model so costs incurred for certain services are
paid by the population benefiting from such services.
6
Section 13. Quarterly Financial Reporting and Monitoring. The City Manager shall
provide interim financial performance reports and updates to the City Council on a
quarterly basis. These interim reports must include detailed year to date revenue and
expenditure estimates, as well as explanations for major variances to budget. The
format of the quarterly report must be relatively consistent with the adopted budget.
Section 14. Use of Nonrecurring Revenue. The City shall endeavor to use
nonrecurring revenue to fund one-time expenditures. Nonrecurring revenue may
include items such as sale of fixed assets, court settlements, or revenue collection
windfalls.
Section 15. Debt Management. The City Manager shall adhere to the Debt
Management Policy adopted by Resolution 028902 on December 14, 2010, and
reaffirmed by Resolution 029321 on December 13, 2011.
Section 16. Capital Improvement Plans/Funding. The annual Capital Improvement
Plan shall follow the same cycle as the Operating Budget. As part of the annual capital
budget process, the City shall update its short and long range capital improvement
plans. For the three-year short term plan, projects include any projected incremental
operating costs for programmed facilities. The long range plan extends for an additional
seven years, for a complete plan that includes ten years. Short-term plan projects must
be fully funded, with corresponding resources identified. As part of a concerted effort to
reduce debt levels and improve financial flexibility, the City shall pursue pay-as-you-go
capital funding where possible.
Section 17. Expenditures. Within the limitation of public service needs, statutory
requirements and contractual commitments expenditures included in the operating
budget shall represent the most cost efficient method to deliver services to the citizens
of Corpus Christi. Efforts to identify the most cost efficient method of service delivery
shall continue during the fiscal year after the operating budget is adopted and may be
implemented during the fiscal year as necessary and of benefit to the public.”
Section 18. Zero Based Budgeting type of process. To prepare the City’s operating
budget, the City shall utilize a Zero Based Budgeting type of process. The staff shall
be accountable for utilizing a Zero Based Budgeting type of process comprehensively
for all department budgets.
Section 19. A State Hotel Occupancy Tax (HOT) Fund. A state HOT Fund was
created for the Fiscal Year (FY) 2015-16 budget as a result of the Texas 84th
Legislature’s (2015) House Bill (HB)1915 that allowed Corpus Christi and three other
Texas cities to retain 2% of the state hotel occupancy taxes collected by the cities to be
reinvested for beach maintenance and restoration. The expenditures in this Fund shall
not be used to offset expenditures for Gulf Beach maintenance currently paid for out of
the local HOT Fund. The funding for Gulf Beach maintenance in the local HOT Fund
shall not fall below the lesser of $1,825,088 or 15% of HOT revenue (not including the
7
Convention Expansion portion) budgeted. This amount will be in addition to any
expenditures budgeted for Gulf Beach Maintenance in the State HOT Fund.
ATTEST: THE CITY OF CORPUS CHRISTI
_____________________________ ____________________________
Rebecca Huerta Nelda Martinez
City Secretary Mayor
8
Corpus Christi, Texas
_________ of __________________, ____________
The above resolution was passed by the following vote:
Nelda Martinez ______________
Kelley Allen ______________
Rudy Garza ______________
Michael Hunter ______________
Priscilla Leal ______________
David Loeb ______________
Chad Magill ______________
Colleen McIntyre ______________
Lillian Riojas ______________
B r i a n R o s a s
L u c y R u b i o
M a r k S c o t t
Carolyn Vaughn
City Council Retreat
March 22, 2016
1
Review Retreat Agenda & Backup
Book
4
2016 Council Calendar
Progress Report on 2015 Council
Priorities
3) Communication Update & Discussion
4) Confirm City Manager Work Plan
Alignment
5) Review & Set Budget Policy
6Direction on Ballot Language for Renewal
of Dedicated Sales Tax
7) Personal Goals
8) Improving Teamwork & Policy Governance
City Manager
Opening Comments
1 4
Finalize 20 1 6
Council Calendar
Progress Report on 2015
Council Priorities
Residential Road Repair
Water Policy
Economic Development Policy
First Council Priority:
Residential Road Repair
Sustainable, Sufficient Annual Funding
of a Realistic Residential Road Repair
& Maintenance Program, Including
Curb & Gutter Projects
1
Residential Road Repair Initiatives
7 Council Briefings on Condition of & Funding for
Residential Roads, Including
General Obligation Bonds
Charter Amendment to Allow Assessment of
Property Taxes Dedicated to Residential Road
Reconstruction
Renewal of Dedicated Sales Tax, Including a
New Component for Residential Road Repair
Created Ad Hoc Residential Street Infrastructure
Advisory Committee
Review & Assessment of Street Preventative
Maintenance Program (SPMP) & Bond Projects
Second Council Priority:
Water PoIicy
Strategies:
Continue Water Supply Development Which Includes:
Short -Term Industrial Desalination
Long -Term Potable Water
ti Groundwater As A Potential Additional Source
Continued Inter -Regional Partnerships & Planning
Align Water &Wastewater Strategies,With A Focus
on Consolidated Wastewater Plant & SSO Solution
• Educate The Public On Water Supply &Water Supply
Strategies
• Utility Rate Model & Governance
Drought Contingency Plan & Drought Determination
Criteria
Water Policy Initiatives
Available Water in Region until 2040
Until 2050 with Reuse
• Until 2070 with Desal
Over 13 Council Briefings on Water
Supply Issues
• Mary Rhodes Pipeline Phase 2
Completion
Water Policy Initiatives Cont.
• Water Supply Development
Projects
Desal Demo Approval to Move Forward
in April, 20 1 6
Industrial Desal Report Complete End
of March, 20 1 6
- Aquifer Storage & Recovery (ASR)
Feasibility Study Focus on Proximity to
Wastewater Treatment Plants to
Facilitate Reuse
1 4
Water Policy Initiatives Cont.
• 2016 Region N Regional Water Plan
• Guadalupe -Blanco River Authority
Discussions
• Public Education Efforts on Water Supply
2-YearWater Rate Model Reduces
Revenue Fluctuations
Revised Drought Contingency Plan
Third Council Priority:
Economic Development Policy
Strategies
Urban Infill &Adaptive Reuse
Downtown Revitalization, Including Well Designed,Tailored
Incentives, Homeless & Housing Policies, Incentive Options for
Mixed Use Development Such as TIF Gap Financing, &
Improved Lighting & Safety
• Create Policies That Shape Economy &Target Desired
Business Niches
• Policy Alignment With EDC & Type A Board
Retain & Grow Existing Businesses
Developing Area Specific Plans Using Tailored Incentives &
Exploring Tools Such As Development Corporations
• Predictable, Consistent Incentive Matrix
Bringing New Businesses to District 3
Expand Diversity of Businesses
4 1
Economic Development Initiatives
3 Status Reports to Council in June,
September & January
Infill &Adaptive Reuse: Code
Amendment & Policy Guidelines to Create
Infill Housing Incentive Program
Downtown:1\'
Tailored Downtown Project Incentives
Improved Lighting 8( Safety on Leopard cigj
Street Lop- u -p QLLG-A- prig62Aivu - `) 2,
Downtown Off Duty Bike Patrol Pee-pc2-
City Manager's 100 Day Plans
(High Profile Projects Change Targets, not Routine Operations )
19
20
21
22
April 22 - July 21, 2016
July 22, 2016 -Oct. 30, 2016
Oct. 31, 2016 - Feb. 8, 2017
Feb. 9- May 20, 2017
• ZBB - Budget- FY 16-17
• Continue to work on the FY16-17 ZBB process FY 16-17
• Begin FY 17-18 ZBB process
• Continue FY 17-18 ZBB process
• Support the Street Ad Hoc Committee
• Support the Charter Review Commission
• Local Residential Streets - Funding Plan
• Local Residential Streets Funding Plan
• Execute Residential Street Plan of work
• Execute Residential Street Plan of work
• Local Residential Streets - Plan a Program of Work
• Local Residential Streets - Plan a Program of Work
•Stay on schedule with the approved Streets projects; report to City
• Stay on schedule with the approved Streets project; report to
• Stay on schedule with the approved Streets project; report to
Council quarterly
City Council quarterly
City Council quarterly
• Plan CC 2035 - Goals
• Plan CC 2035 - Strategic Plan
• Plan CC 2035- Strategic Plan
• Plan CC 2035- Utilities Plan
• Downtown Area Development Plan
• Downtown Area Development Plan
• Work on SSO - Consent Decree
• Work on SSO - Consent Decree
• Work on SSO-Consent Decree (Final Draft)
• Implement SSO
• Complete Initial Review of Engineering Department
• Complete Initial Review of Engineering Department
• Complete Initial Review of Engineering Department
• Complete Initial Review of Engineering Department
• Future Water Supply plan- Discover
• Future Water Supply plan- Discuss
• Future Water Supply plan -Adopt
• WWTP Consolidation Plan Discuss
• WWTP Consolidation Plan Decide
• WWTP Consolidation Implementation
• WWTP Consolidation Implementation
• Begin work on Storm Water Policies (if streets are ok)
• Begin work on Storm Water Policies (if streets are ok)
• Business Growth Plan/Policies
• Business Growth Plan/Policies
• Business Growth Plan/Policies
• Execute Business Growth Plan/Policies
• Military Support Action Plan - Discover
• Military Support Action Plan - Discuss
• Execute Military Support Plan
• Execute Military Support Plan
• Ensure Water Quality Meets Standards thru Summer
• Broadway Plant - Advance the resolution of Issues
• Broadway Plant - Advance the resolution of Issues
• Broadway Plant - Advance resolution of Issues
• Broadway Plant - Advance the resolution of Issues
• Complete research on City/County Health District
• Decide an City/County Health District
• Execute City/County Health District
• Execute City/County Health District
• Receive report from Ethics Commission; begin CC review of
ordinance
• Receive report from Ethics Commission; begin CC review of
ordinance
• Complete review of Finance Department
• Select two new departments for improvements
• Conduct Competitive Reviews
• Conduct Competitive Reviews
• Discovery - Policy Governance ??
•Debate - Policy Governance ??
•Decide - Policy Governance ??
• INITIATE- Sales tax reallocation and Charter amendments
• Evaluate Windfarm/ Navy Operations/Annexation
• Continue collective bargaining process with the Fire union
• Continue collective bargaining process with the Fire union
• Continue collective bargaining process with the Fire union
• Continue collective bargaining process with the Fire union
•Advance work on Communications Plan- Website, content, Call
•Advance work on Communications Plan- Website, content, Call
Advance work on Communications Plan- Website, content, Call
Advance work on Communications Plan- Website, content, Call
Center, mobile applications
Center, mobile applications
Center, mobile applications
Center. mobile applications
• Continue work on Mary Rhodes 2
• Complete Mary Rhodes 2
• Efficiency & Continuous Improvement Training for Upper
• Efficiency & Continuous Improvement Training for Upper
Management
Management
• Begin process for selecting Court Director
• Select Court Director
• Begin process for selecting Facility Director
• Select Facilities Director
• Begin process for selecting Utilities Director
• Select Utilities Director
• Begin process for selecting Director of Water Utilities
• Select Water Utilities Director
• Begin process for selecting Development Services Director
• Select Development Services Director
• Begin process for selecting Gas department
• Select Gas department Director
• New Council Orientation
• Implement what the voters approved in regards Charter, etc.
• Evaluate vacant ACM Position - Begin Search?
•Advance citizen engagement opportunities
• Begin Utility rate discussion for the next two years period
• Prepare for next round of Labor negotiations
• City Survey
• Harbor Bridge - Park & Land
• Support the 2017 State Legislative Session
Economic Development Initiatives
Cont.
Homeless:
Homeless Solutions,Visions & Strategies
Adopted
Created Homeless Advisory Council
$200K in CDBG Funds for Coordinating
Homeless Services
Community Dialog on Addressing
Disruptive Behaviors
$Y-Pic°,(Q.7$(5c) r
poc'
PifC
Economic Development Initiatives
Cont.
Housing:
Multiple Council Housing Workshops
Type A Housing Pilot Project
• $500K to Housing Authority for 93 New
Units & 207 Rehabilitated Units
• $300K CDBG Funds for 68 New Units
• Supported RiverViewTax Credit Project
for 96 New Units
Economic Development Initiatives
Cont.
• CCREDC Target Industries Study to
Diversify Business Base
• Combined Council, CCREDC &Type A
Board Retreat Focused on Alignment in
April
Renewed CCREDC Contract
Updated Type A Guidelines
Retail & Grow Existing Businesses:
4 Agreements to Retain or Expand Existing
Businesses
Synchronist Retention Software System
Purchased by CCREDC
Economic Development Initiatives
Cont.
• Created Downtown Development
Incentives Matrix
• Plan CC Comprehensive Plan 2035
• Type A Grant to LiftFund Facilitated Six
New Businesses into District 3 From July,
2015 to November, 20 1 5
15 Minute Break to Set Up for
Working Lunch
4
Communication
Update
Communication Update
Organizational Change
• Aligned mission to organization priority
• Developed three year strategic
communication plan
• Merged three functional areas including
print shop, call center and public
information t{
• Moved three public information officers
into newly formed department.
• Defined functions, jobs/responsibilities
and aligned personnel to mission
• Recognition program
•
20
r r
Communication Update
Progress —Multimedia
Video & Television Operations
AT&T Uverse expansion
• Studio design, bid and contract
awarded
• Anticipate completion of studio
summer 2016
• Record 168 videos produced FY15
Print Shop
• Organizational overhaul
• Work order system implemented
• $900 monthly savings on leases
• Open House success
• Rough estimates indicate a $70K
savings over commercial print
services yearly
Communication Update
Progress —Media Relations
Messaging & Content
• Content planning calendar
• Spanish language expansion
• Message map implementation
Communication Collaboration
• Emergency management
incident response (19)
• Media assistance tracking
Citizen Engagement
• Increases in social media
• Expansion of public meetings
• Ask the City
• Online newsroom launch
• Direct news delivery
800
600
400
200
0 Caller
Media Assistance
739
KRIS KZTV KIII KORO
Represents 11 Months Data
Other
Communication Update
Progress — eGovernment
rt,
aneMell
envery aseOn K _•..v.r..,.ee
This is a Large
a Head
,.rg.. eline
a
Get to Know Your Government
• Operational
• Assessment plan complete
• Identify best practices and areas for
improvement
• INFOR implementation team
• Website
• Redesign scope and contract awarded
• Data and research led to service based
website navigation
• Mobile responsive component design
• Phase one complete including site map
and wire frame.
• Anticipate testing and content
migration to begin in May/June
Completion fall of 2016
Communication Update
On-going Success
Citizen Engagement*
• Twitter followers up 71 %
• YouTube content up 252%
• YouTube subscribers up 446%
• 359,420 Call Center calls for FY 2015
Media Engagement
• Averaging 160+ media contacts monthly
• Media credential/badge program
implemented
• Annual media survey noted overall
improvement
Calculations are based on October 1, 2014 data
r
Our service is
important and we must
tell our story...
4
Pause for Discussion:
Communication Feedback from
Council
1
Long Term Initiative, But Moving in Right
Direction
Missing an Articulated Value orVision for
All City Communication
Improved Use of Social Media
Enhanced Web Site
More Proactive
Leverage Council's Communication &
Social Media Network
f f
Next Steps:
Discuss & Confirm Alignment of
City Manager's 3-YearWork
Plans with Council's Priorities
IstTier: City Manager's Council
Priority 3-YearWork Plan
Streets:
Focus on 4th Quadrant of Residential Road Reconstruction
Implementing Other 3 Quadrants:
Street Maintenance Program & User Fee Funding
Dedicated Bond Programs for Streets
Establishing Street Policies, Standards & Contractor
Accountability
Water:
Potential Future Supply — Desalination, Reuse, Ground Water &
ASR
Secure Water Quality
Sanitary Sewer Overflow Initiative
Broadway Plant
Waste Water Treatment Plant Consolidation
Storm Water Utility
1
Council PriorityWork Plan Cont.
Economic Development:
Incentive Policies & Other Economic
Development Policies
Small Business Growth
Plan CC 2035
Infill
Sprawl
ETJ Annexation
Downtown
Infrastructure Replacement & Expansion
4 4
Council PriorityWork Plan Cont.
Economic Development Cont.
Harbor Bridge
Development Services Continuous
Improvement
Military
Communications Continuous
Improvement
2''Tier: City Manager's Internal
Operations 3-YearWork Plan
Daily Operations:
Annual Business Plans
Customer Satisfaction
Performance Measurement & Reporting
Benchmarking
Workforce Development:
Compensation
Training
Labor Relations
1 f
CityManager's Internal O
3-YearWork Plan Cont.
Continuous Improvement:
Department Evaluations & Efficiency
Improvements
Follow Up on Previous Department Plans
New Department Plans:
Finance
Engineering
Developing & Updating Policies & Procedures
Technology Improvements:
Enterprise Resource Planning (ERP) — software used to
manage and automate the back office functions of finance, budget, utility
billing & human resources.
Municipal Court
Development Services — also a part of ERP
3rd Tier: As Time Permits
Facilities:
Execute Asset Management Plan
New Facility Plans for:
Jail
Municipal Court
Public Safety
Equipment Maintenance & Replacement Plan
Parks Master Plan
Homeless Policy & Services
Housing Policy
City Manager's 3-Year Goals
1) Help the Council Work as a Team;To be 5Y4,'Il
Explicit About What They Want;To Keep
Them Focused
2) Resolve Residential Street Issue
3) Execute Entire Street Plan
4) Change Public Perception About Roads
5) Make Improvements to Engineering
Department
6) Bring Actionable Conclusion to Desal
7) Clearly Define Our Long-Term Water
Supply Plan
4 4
City Manager's 3 -Year Goals Cont.
8) Resolve Broadway Treatment Plan Issues
9) Resolve SSOI Issue; Begin to Execute
10) Resolve Storm Water Utility Issues (After
Streets are Adequately Addressed)
11) Execute Council Priority & Internal Operational
3 -Year Work Plans
12) Work on 3rd Level Priorities as Time &
Resources Allow
13) Continue to Communicate the City's Message
Through Internal & External Resources
14) Train My Replacement
CITY MANAGER'S
100 DAY PLANS
Pause for Council Discussion
Council Resolution to Consider
City Manager's 3-YearWork
Plans & Goals
4 !
Budget & Finance Policy
Discussion & Direction
1f
Budget Policy
1997 Resolution #029848: Financial Budgetary Policies Providing Policy Direction on
Preparation of the Annual Budgets:
Last Amended in June 2013
Intended to give City Manager Policy Direction on Preparation of Annual Budgets
Reviewed by Weaver - Recommended Enhancements to the Existing Policy will be Brought
to the City Council for Approval Prior to End of the Fiscal Year
Components of Resolution :
Requires Structurally Balanced Budget
Defines Reserve & Committed Funds Policies
Gives City Manager Direction on O&M Property Tax Rate for Preparation of the
Annual Budget
Sets Funding Levels forTMRS Contributions & Street Improvements
Specifies a Multi -Year Future Focus, Reporting Requirements &Administrative
Cost Recovery
Defines Debt Management Requirements, as well as Capital Improvement Plans &
Funding
Sets Out City Manager Commitment to Drive Efficiency in Operations
Describes Zero Based Budgeting Type of Process
4 I
Budget Policy Cont.
3 Proposed Changes:
• Section 3: Increase General Fund Reserve Floor from 10% to 17% (2 months of General Fund
Operating Revenue) as Recommended by GFOA
Section 8: Increase additional City Contribution toTMRS from 1% to 2%
Add a Section 19 on the Hotel Occupancy Tax (HOT) Fund:
A State Hotel Occupancy Tax (HOT) Fund was created for the Fiscal Year (FY) 2015-16 budget as a
result of the Texas 84th Legislature's (2015) House Bill (HB) 1915 that allowed Corpus Christi and
three other Texas cities to retain 2% of the state hotel occupancy taxes collected by the cities to be
reinvested for beach maintenance and restoration. The expenditures in this Fund shall not be used to
offset expenditures for Gulf Beach maintenance currently paid for out of the local HOT Fund. The
funding for Gulf Beach maintenance in the local HOT Fund shall not fall below the lesser of
$1,825,088 or 15% of HOT revenue (not including the Convention Expansion portion) budgeted. This
amount will be in addition to any expenditures budgeted for Gulf Beach Maintenance in the State
HOT Fund.
o f
Budget Policy Cont.
1 Sections 1,2 & 1 4: Requires Timely,
Structurally Balanced Budget
2) Sections 3 - 4.6; 1 0: Defines
Reserve & Committed Funds Policies
3) Section 5: Gives City Manager
Direction on O&M Property Tax Rate
for Preparation of the Annual Budget
4) Sections 6 - 8: Sets Funding Levels
for TM RS Contributions & Street
Improvements
Budget Policy Cont.
5) Sections 9; 11 - 13: Specifies Mufti-Year
Future Focus, Reporting Requirements &
Administrative Cost Recovery
Sections 15 — 16: Defines Debt
Management Requirements, as well as Capital
Improvement Plans & Funding
7) Section 17: Sets Out Commitment to
Efficient Operations & Continuous
Improvement
8) Section 18: Describes Accountability
Through a Zero Based Budgeting Type of
Process
9) Add New Section 19: Legislative
Requirement for HOT Funds
Council Resolution to Adopt
Amended Financial Budgetary
Policies Providing Policy
Direction on Preparation of the
Annual Budgets
1
Discussion & Direction on Ballot
Language for Renewal of
Dedicated Sales Tax
Ballot Language for Dedicated Sales
Tax Renewal
Background:
1/8 Cent Dedicated Sales Tax in City of Corpus
Christi Approved by Voters November 2002
Expires April 2018 Unless Re -Approved
November 2016
Must be Voted on at Regular Election
Collects About $7.3M PerYear:
Affordable Housing Program ($500K)
Business Incentives (+/- $3.5M)
Small Business Programs (+/- $750K)
Whataburger Field (+/- $2.5M)
Current Unallocated Fund Balance: +/- $8M
I
Ballot Language for Dedicated Sales
Tax Renewal Cont.
TypeA Fund
(Whataburger Field,
Affordable Housing,
Business & Job
Development),
0.125%
Seawall
Maintenance
Fund, 0.125%
American
Bank Center
& Arena,
0.125%
CPP -Crime
Control &
Prevention
District,
0.1 25 %
Ballot Language for Dedicated Sales
Tax Renewal Cont.
HB 157: 2015 Legislative Change
Regarding Sales Tax
• Aliows Cities to Hold an Election to
Reallocate the 1% Sales Tax Currently Used
for Limited Designated Uses to a General
Revenue Sales Tax in I /8t" of I% Increments
• 1/2 of that 1% is Dedicated to the RTA &
Cannot be Changed by the City Council
• Of the Other 1/2 of 1% Currently Dedicated
to Specific Uses, Both the Type A 1/81± and
the Crime District 1/8th Expire in 2018
4 1
Ballot Language for Dedicated Sales
Tax Renewal Cont.
Considerations for an Election to Renew the Dedicated
Type A Sales Tax in Light of the Quest for Road
Funding:
With Whataburger Field Debt Paid Off 9/1/2017, +/- $2.5M
Annually Will be Available beginning FY2018
Type A versus Type B Sales Tax?
,O(, • Type B is Basically Type A + the Ability to Fund Some
� Specified Infrastructure, Such as Most Arterial Roads but
NOT Residential Roads
General Revenue versus Type B Sales Tax?
General Revenue Allows Funding for Any Municipal Purpose,
Including Residential Roads
Ballot Language for a General Revenue Sales Tax Cannot
Identify Specific Uses, Such as Housing, Jobs & Residential
Roads
However, a Contract with the Voters on Specific Uses can be
Accomplished by Council Ordinance as was Done in 2002.
1 1
Ballot Language for Dedicated Sales
Tax Renewal Cont.
CCREDC Recommendation on Type A SalesTax:
n " • Affordable Housing — I 0%11 O)O6
•.-�---''� , n^ • Roads — 45% 3,f)/
• Jobs: Economic Incentives & Small Business — 45% J .3 Yln
v��
Staff Recommends Maintaining $300K to Continue to Pay for the
City's Obligation for Whataburger Field Maintenance & Insurance
Type A SalesTax Decisions?
Type A or Type B or General Revenue?
If General Revenue, How Specific Do You Want to Be in Your Contract
With the Voters?
Residential Roads?
Residential Road Reconstruction?
Residential Road Improvements?
Keep a 15 Year Expiration?
What Allocation of Funds?
Other?
Crime Control & Prevention District Renewal Decision?
Motion for direction to direct
City Attorney to draft ballot
language for election to
renew/redesignate sales tax(es)
to
1 5 Minute Break
Round Table Discussion of
Personal Goals for Council
Members
Discussion of Team Work & Policy
Governance
Initial Council Feedback on Team Work:
More I -on- I Interaction with Individual Council
Members & City Manager Off the Dais
Earn & Show Respect for One Another
Listen
Don't Interrupt
Don't Lecture
Be Willing to Talk Through Issues Together
Be Willing to Share Individual Thought Processes in
Areas of Dispute
Several of You Discussed How to do a Better Job of
Policy Making & of Creating Stronger Accountability
N
City Manager Thoughts on Policy
Governance
There are Many Models of Policy Governance Designed to Improve a
City Council's Policy Making Process & Create Stronger
Accountability
These Models Recognize Leadership on a Governance Board is Just
Plain Difficult:
You Are Exercising Authority Over Activities You Will Never Completely
See
Toward Goals You Cannot Fully Measure
Through Jobs And Disciplines You Will Never Master
How DoYou FulfillYour Own Accountability For Policy,While Not
RestrictingThe Creativity And Prerogatives Of Management For
Operations?
How DoYou Govern as a Body Rather than Individual Council
Members Despite Internal Disagreement, Limited Time For The
Tasks at Hand &An Unending Stream Of Other Issues Demanding
Attention?
City Manager Thoughts on the
Carver Model of Policy Governance
Carver Model Built On Five Basic
Principles:
First & Foremost, Accountability For Public
Trust
Clear Delegation Of Authority
Strict Boundary Maintenance Between
Board & Staff — Policy versus Operations
Efficiency Of Board Time & Effectiveness of
Organizational Oversight
The Ability Council to Focus on Policy & to
Govern as a Body Rather than as Individual
Members
City Manager Thoughts on Carver
Model of Policy Governance Cont.
List of Model Concepts:
Specify Clear Organizational Purpose (ENDS)
Identify The MEANS The City Manager Is Not
Allowed To Use. Put No Other Restrictions on the
MEANS To Achieve Organization Goals.
Establish Clear Measurable Standards To Measure
Organizational Performance & Success
• Create Unambiguous Standards For City Manager
Accountability, Performance & Success
• Determine Standards & Rules of Engagement For
Board Operation & Deliberation
• Strict Monitoring & Reporting Of Organizational
Outcomes
• Training on All Above
(
Motion for Direction for City
Manager to Explore a Model of
Policy Governance with the Council
in the Months Ahead
Retreat Summary, Next Steps &
Close