The URL can be used to link to this page

Home My WebLink AboutAgenda Packet City Council - 08/10/2023 ,5r.,f,,r Cit of Corpus Christi 1201 Leopard Street Y p Corpus Christi,TX 78401 x x cctexas.com \ Meeting Agenda - Final City Council Thursday,August 10,2023 9:00 AM Council Chambers FY 2023-2024 Budget Workshop: Including but not limited to Public Works/Streets, Storm Water, Solid Waste, Property Tax Rate & Exemptions Public Notice:ITEMS ON THIS AGENDA ARE FOR COUNCIL'S INFORMATIONAL PURPOSES ONLY. NO ACTION WILL BE TAKEN AND NO PUBLIC COMMENT WILL BE SOLICITED. A. Mayor Paulette Guajardo to call the meeting to order. B. City Secretary Rebecca L. Huerta to call the roll of the required Charter Officers. C. BRIEFINGS: 1. 23-1340 FY 2023-2024 Budget Workshop: Including but not limited to Public Works/Streets, Storm Water, Solid Waste, Property Tax Rate & Exemptions Sponsors: Office of Management and Budget D. ADJOURNMENT City of Corpus Christi Page 1 Printed on 81712023 SC GO � O F U hORp aRA�49 xs52 AGENDA MEMORANDUM City Council Workshop of August 10, 2023 DATE: August 4, 2023 TO: Peter Zanoni, City Manager FROM: Eddie Houlihan, Director of the Office of Management and Budget EddieHo@cctexas.com (361) 826-3792 City Council Workshop on Public Works / Streets, Storm Water, Solid Waste, and Property Tax Rate and Exemptions for the FY 2024 Proposed Budget STAFF PRESENTER(S): Name Title/Position Department 1. Ernesto De La Garza Director Public Works / Streets 2. Gabriel Hinojosa Assistant Director Storm Water 2. David Lehfeldt Director Solid Waste 3. Alma Casas Interim Director Property Tax Rate and Exemptions ISSUE: This is the fifth of seven City Council workshops to discuss the FY 2024 proposed operating budget. The topics for the fifth workshop include Public Works/ Streets, Storm Water, Solid Waste, and Property Tax Rate and Exemptions. BACKGROUND INFORMATION: A briefing on the FY 2024 proposed budget was presented to the Mayor and City Council on July 25, 2023. The FY 2024 proposed budget focuses on City Council and community priorities including public safety, street reconstruction/maintenance, parks, libraries, and animal care. The FY 2024 proposed budget, comprised of all funds excluding transfers, totals $1.5 billion. The General Fund budget is$291.9 million, and the Capital Budget totals $604.1 million. A series of seven City Council budget workshops are scheduled to be held from July 19 to August 24. At these sessions, City staff will review in detail the budget proposals with the Mayor and City Council. Additionally, there will be five public input sessions to be held from August 7 to August 16. The budget is scheduled to be adopted on September 5, 2023, for the City's fiscal year which begins on October 1. The fifth budget workshop will be held on Thursday, August 10, 2023, at 9:00 am. At the workshop, the City Council will be presented with the FY 2024 proposed budget for Public Works/Streets, Storm Water, and Solid Waste. Additionally, we will discuss Property Tax Rate Exemptions. Public Works / Streets: The focus of the Street Department is to manage, maintain, and develop the City's Street system. The FY 2024 combined proposed operating and capital budget for the Street Department is $153.9M and includes funding from the Street Maintenance Fund, Residential Street Reconstruction Fund, and Capital Improvement Program. Below is a summary of the funding and position counts that would be authorized by the FY 2024 proposed budget. FUND FY 2024 AUTHORIZED POSITIONS PROPOSED BUDGET Street Maintenance Fund $46,880,086 159 Residential Street Reconstruction Fund 19,972,400 0 Capital Projects 87,014,756 0 Total $153,867,242 159 The FY 2024 budget includes $153.9M for street maintenance and reconstruction which includes Residential and Arterial & Collectors. The FY 2024 Street capital budget contains projects that maintain or improve roadway infrastructure, ensure adequate street lighting, comply with the Americans with Disabilities Act (ADA) requirements, and promote safe and efficient traffic flow. FY 2024 planned improvements include the completion of Bond 2018 and Bond 2020 voter approved projects and the beginning of construction of Bond 2022 projects. The Street Department's FY 2024 Proposed Budget includes expenditures of $46.9M for street maintenance. Improvements in the budget include funding for year one of a plan to assess the condition of the traffic signal support systems. This assessment will provide information so the department can produce a maintenance/replacement plan for these systems. Other improvements included in the FY 2024 Proposed Budget include Phase II of the"Light-Up CC" initiative which includes a study to determine where additional lighting is needed and potential implementation of the plan. Phase I of the Light-Up CC initiative, which included converting over 15,000 streetlights to brighter, more efficient LED technology was completed in FY 2023. Storm Water: The focus of the Storm Water Department is to collect and convey storm water, protect life and property from storm flooding and protect water quality. In FY 2022, the City joined other major Texas cities and approved a Storm Water maintenance program. A five-year program was presented with improvements and corresponding projected fee adjustments for each year. City staff is recommending a Storm Water fee increase in FY 2024 to fund improvements in the five-year plan and inflation. The Storm Water rate has three residential tiers: 1) Tier 1 parcels have an impervious cover of less than 3,000 sq. ft. - monthly rate will increase by $0.86, from $5.77 to $6.63; 2) Tier 2 parcels have an impervious cover of 3,000 sq. ft. — 4,500 sq. ft. - monthly rate will increase by $1.15, from $7.69 to $8.84; and 3)Tier 3 parcels have an impervious cover of greater than 4,500 sq. ft. - monthly rate will increase by $2.01, from $13.46 to $15.47. A non-residential customer (all other accounts) currently has a monthly fee of $7.69 per storm water unit which will increase to $8.84 per stormwater unit. The FY 2024 combined proposed operating and capital budget for the Storm Water Department is$94.3M and includes funding from the Storm Water Fund and the Capital Improvement Program. Below is a summary of the funding and position counts that would be authorized by the FY 2024 proposed budget. FY 2024 FUND PROPOSED BUDGET AUTHORIZED POSITIONS Storm Water Fund $29,151,247 136 ,Capital Projects 65,115,372 0 [Total $94,266,619 136 Storm Water enhancements in the FY 2024 Budget include increased collector and arterial street sweeping and increased minor channel cleaning and maintenance. FY 2024 is a continuation of the five year planned program improvements and corresponding rate adjustments. Solid Waste: The focus of the Solid Waste Department is to efficiently collect, dispose, and recycle solid waste in an environmentally responsible manner to ensure public health and beautification of the city. The last residential rate change was 4 years go. The FY 2024 proposed budget includes a 4.3% increase to residential customers and a 4.5% increase to commercial customers. The FY 2024 proposed budget for the Solid Waste Department is $66.8M and includes funding from the General Fund and Capital Improvement Program. Below is a summary of the funding and position counts that would be authorized by the FY 2024 proposed budget. FUND FY 2024 AUTHORIZED POSITIONS PROPOSED BUDGET General Fund $35,402,664 192 Capital Projects 31,427,356 0 otal $66,830,020 192 The FY 2024 proposed budget for Solid Waste includes funding for an additional slow-speed shredder/grinder for $278K to support the department's composting program. Property Tax Rate and Exemptions: City staff is proposing that the FY 2024 property tax rate not exceed the current property tax rate of $0.620261 per $100 valuation. The Nueces County Tax Office will be providing us with the No-New- Revenue Rate and the Voter-Approval Rate. We are currently working with the Nueces Tax Office and should have the final rates before the August 10th budget workshop. Once we have the final numbers, we will publish the rates in the newspaper and on the City's website as required by Truth-in-Taxation. We are scheduled to post the Notice of Tax Rates and the Notice of Public Hearing in the Corpus Christi Caller-Times on Sunday, August 13, 2023. In FY 2024, State Legislation will be providing property tax relief to property owners for school district property taxes if approved by the voters in an election to be held in November 2023. We would like to continue that property tax relief in FY 2025 by increasing the City's homestead exemption and the over- 65/disabled homestead exemption. The maximum homestead exemption allowed for a taxing unit in the Tax Code is 20%. The City of Corpus Christi currently offers a 10% homestead exemption. City staff is recommending increasing to the maximum 20% over two years (FY 2025 and FY 2026). Additionally, City staff is recommending increasing the over-65/homestead exemption from $50,000 to $62,500 effective for FY 2025 (tax year 2024). This can be accomplished through an ordinance approved by the City Council this year. LIST OF SUPPORTING DOCUMENTS: PowerPoint - not attached • Public Works / Streets • Storm Water • Solid Waste • Property Tax Rate and Exemptions