Fairview City Council Budget Workshop Insights

City of New Fairview City Council Budget Workshop June 22 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Agenda Welcome Results of the Strategic Planning Session Updated FY 2021 Budget-in-Progress Capital Improvement Program Street Program/Debt Service Discussion Wrap Up This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Priorities 75/18 Infrastructure Streets 61/15 Financial Sustainability 50/11 Staff Retention and Turnover 48/12 Community Planning 47/13 Fire/EMS 33/9 Economic Development/Jobs 26/6 Police/Safe Community 25/7 Park Development 6/2 Infrastructure Water/Sewer 0/0 Recreation Opportunities Priorities - Community Survey Streets Police Fire/EMS Water/Sewer Financial Sustainability Park Development Community Planning Economic Development Recreation Staff Retention Total Avg 2.077 3.538 3.692 4.385 5.462 6.077 6.462 6.538 6.923 9.846 27 46 48 57 71 79 84 85 90 128 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

2020-2021 Work Plan - Streets Provide pothole patching as needed. Public Works (On-going) Make repairs to the drainage system. Public Works (On-going) Prepare Street Rehabilitation Program. Engineering, City Administrator (3rd quarter, 2020) Consider bond election in November for Street Program. City Administrator, City Council, City Secretary (4th Quarter, 2020) If bond election is approved, execute Street Program. Engineering, City Administrator (2020-2024) Prepare capital budget with future street construction. City Administrator (On-going) Identify grants that can be used for street construction. City Administrator (On-going) This presentation is part of a workshop with discussion. These slides should not be taken out of context.

FY 2020-2021 Work Plan Financial Sustainability Prepare FY 2021 Budget. City Administrator, City Council (2nd and 3rd Quarters, 2020) Prepare five-year financial plan. City Administrator, City Council (2nd and 3rd Quarters, 2020) Prepare a five-year capital budget. City Administrator, City Council (2nd and 3rd Quarters, 2020) Complete audits for FY 2015 through FY 2019. Auditor, City Administrator, City Secretary (2nd Quarter, 2020) Implement new financial software. City Administrator, City Secretary (3rd Quarter, 2020) Hire Financial Consultant to assist in software implementation and train City Secretary on new system. City Administrator, City Secretary (3rd Quarter, 2020) Prepare and adopt financial policies. City Administrator, City Council (2nd and 3rd Quarters, 2020) Enhance financial transparency on the new City website. City Administrator, City Clerk (2nd and 3rd Quarters) Identify grant opportunities to hire future staff. City Administrator (On-going) Identify grant opportunities to fund future capital projects. City Administrator (On-going) This presentation is part of a workshop with discussion. These slides should not be taken out of context.

2020-2021 Work Plan - Staff Retention and Turnover Prepare job descriptions and performance evaluations. City Administrator (2nd Quarter, 2020) Adopt a pay plan. City Administrator, City Council (3rd Quarter, 2020) Prepare bid proposal for health, dental and medical insurance. (Benefits consultant, City Administrator) (3rd Quarter, 2020) Prepare and adopt a Safety Manual. City Administrator, City Council (3rd Quarter, 2020) Prepare and adopt Employee Procedure Manual. City Administrator, City Council (3rd Quarter, 2020) Incorporate appropriate employee training in each employees performance evaluation. City Administrator (2nd Quarter, 2020 and on-going). Conduct a Council-Staff Visioning Retreat. All (1st Quarter, 2021) This presentation is part of a workshop with discussion. These slides should not be taken out of context.

2020-2021 Work Plan Community Planning Prepare/Update a comprehensive Plan. City Administrator, Planning Consultant, City Council (1st and 2nd Quarter, 2021) Prepare a Parks Master Plan. City Administrator (2nd and 3rd Quarter, 2021) Prepare a Thoroughfare Master Plan. City Administrator, Engineering, NCTCOG, Wise County (2nd and 3rd Quarter, 2021) Reconstitute Planning and Zoning Commission. City Administrator (1st Quarter, 2021) This presentation is part of a workshop with discussion. These slides should not be taken out of context.

FY 2021 Budget-in-Progress Date April 1 April 30 Prepare Preliminary Budget-in-Progress April 1 April 30 Prepare Five-Year Financial Plan April 1 April 30 Prepare Street Program scenarios May 4 Street Reconstruction Program Presentation May 16 Council Strategic Planning and Budget Workshop June 22 Budget Workshop July 20 Budget Workshop (Optional) July 24 Receive Certified Tax Roll from WCAD August 3 Present Recommended Budget to City Council August 3 Call for bond election for November 4, 2020 (Optional) August 17 Set a Public Hearing for the Tax Rate, Budget August 20 Publish notice of Public Hearings September 8 Public Hearing on the Tax Rate and Budget September 21 Approve the FY 2021 Budget Event Responsible Party City Administrator City Administrator City Administrator Pacheco Koch City Administrator, Council City Administrator, Council City Administrator, Council WCAD City Administrator City Administrator, Council City Administrator, Council City Secretary City Administrator, Council City Council This presentation is part of a workshop with discussion. These slides should not be taken out of context.

FY 2021 Budget-in-Progress Revenue FY 2019 Actual 43,270 FY 2020 Amended 61,141 FY 2021 Recomm. 168,009 BEGINNING FUND BALANCE Revenue Current Property Tax Delinquent Property Tax Penalties Sales/Beverage Tax Licenses and Permits Franchise Fees Court Fines Other Revenue TOTAL REVENUE 500,531 10,211 1,536 100,000 200,000 46,235 15,000 80,000 953,513 500,531 10,211 1,536 100,000 135,000 47,000 15,000 350,000 1,159,278 220,395 129,344 32,646 46,234 12,084 87 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Revenue Assumptions Property Taxes No change FY 2021 Budget-in- Progress Revenue Sales Tax Reduce by $30,000 due to COVID-19 Licenses and Permits Assumes 100 homes built Franchise Fees 2% growth Other Revenue Increase pass through funds from developers for building permits. Court Fines No change. This presentation is part of a workshop with discussion. These slides should not be taken out of context.

FY 2021 Revenues Other Revenue 30% Fines 1% Property tax 44% Licenses and Permits 12% Franchise Fees 4% Sales Tax 9% This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Sales Tax History Historical Sales Tax Collection 700,000 600,000 500,000 400,000 300,000 200,000 100,000 - FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

FY 2021 Budget-in-Progress Expenditures FY 2019 Actual FY 2020 Amended FY 2021 Recomm. Expenditures Payroll & Benefits Contract Labor Supplies & Services Capital Outlay Debt Service TOTAL EXPENDITURES 202,524 89,770 74,179 33,524 846,644 145,838 427,637 268,169 1,154,607 406,567 493,000 255,040 - - - - 5,051 5,000 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Assumptions Personnel Add City Administrator, Street Superintendent, Maintenance Worker FY 2021 Budget-in- Progress Expenditures Step raises mid-year for City Secretary and City Clerk (4%), add benefits. Add pass through expense for building permits for 100 new homes. This presentation is part of a workshop with discussion. These slides should not be taken out of context.

FY 2021 Expenditures By Type Supplies & Services 22% Payroll & Benefits 35% Contract Labor 43% This presentation is part of a workshop with discussion. These slides should not be taken out of context.

FY 2021 Expenditures By Department City Council 1% Administration 24% Public Works 57% City Secretary 9% Court 9% This presentation is part of a workshop with discussion. These slides should not be taken out of context.

FY 2021 Budget-in-Progress Expenditures Personnel Worksheets Health Insurance Life & ADD Rate Annual Overtime Longevity Total TMRS FICA Dental Vision STD LTD WC Total Administration City Administrator 45.00 93,600 100 93,700 10,307 7,168 8,200 500 165 320 425 206 300 121,291 City Secretary City Secretary 29.46 61,277 748 62,025 6,823 4,745 8,200 500 165 320 425 206 200 83,608 Court City Clerk 16.87 35,090 1,000 100 36,190 3,981 2,769 8,200 500 165 320 425 206 150 52,905 Public Works Street Maintenance Worker Street Supt. 15.16 32.50 31,533 67,600 99,133 2,000 2,000 4,000 100 100 200 33,633 69,700 103,333 3,700 7,667 11,367 2,573 5,332 7,905 8,200 8,200 16,400 500 500 489 165 654 320 320 640 425 425 850 206 206 412 500 50,545 93,615 144,160 1,100 1,600 1,000 Totals 289,099 5,000 1,148 295,247 32,477 22,586 41,000 2,500 1,149 1,600 2,125 1,030 2,250 401,965 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Expenditures Benefits Per Employee Health Insurance Single Coverage for Employee Only - $9,000 Dental - $500 Vision - $165 Short-term disability - $320 Long-term disability - $425 Life Insurance ($25,000) - $206 Total for 5 employees - $49,355 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Capital Program Capital Improvement Program includes Streets, Parks, Public Safety Building, Sports Complex, Future Roads Five-year program, also includes future needs. Assumes bond program for streets. Future needs means a project is not funded at this time. This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Pacheco Koch did an analysis of the 25 worst sections of street in town Some need milling and rework the base (3), some pothole patching and seal coat (7), and the remainder need full reconstruction (15). A little more than 35,000 linear feet at an estimated cost of $2.4 million. Street Program/Debt Service Discussion This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Funding Options Pay-as-you-go 25 years at $100,000/year Bond election or Certificates of Obligation? 3-Year or 4-Year Program? 10 Year of 15 Year Payout? This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Impact on the Tax Rate Tax Rate Comparison Street Program I&S Only 3-Year Program, 10-Year Payout FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 - 0.05 0.07 0.10 0.08 3-Year Program, 15-Year Payout - - 0.01 0.06 0.05 4-Year Program, 10-Year Payout - - - 0.04 0.06 4-Year Program, 15-Year Payout - - 0.01 0.01 0.03 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Impact on the Tax Rate Tax Rate Comparison Street Program Total Tax Rate 3-Year Program, 10-Year Payout FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 0.33 0.37 0.40 0.42 0.41 3-Year Program, 15-Year Payout 0.33 0.33 0.34 0.38 0.37 4-Year Program, 10-Year Payout 0.33 0.33 0.33 0.37 0.39 4-Year Program, 15-Year Payout 0.33 0.33 0.33 0.33 0.35 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Total Costs Comparison Comparison of Interest and Fees Debt Interest & Fees Total 3-Year Program, 10-Year Payout 2,375,400 973,060 3,348,460 3-Year Program, 15-Year Payout 2,375,400 1,177,243 3,552,643 4-Year Program, 10-Year Payout 2,375,400 961,748 3,337,148 4-Year Program, 15-Year Payout 2,375,400 1,165,241 3,540,641 This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Funding Options Pay-as-you-go? Bond election or Certificates of Obligation? 3-Year or 4-Year Program? 10 Year of 15 Year Payout? This presentation is part of a workshop with discussion. These slides should not be taken out of context.

Wrap Up Budget Workshop July 20 Certified Tax Roll July 24 Recommended Budget presented to Council August 3 Council decision on bond election or certificates of obligation by August 3 Council make request additional community meetings in August Public Hearing on the budget and tax rate September 8 Thank you for your time today! This presentation is part of a workshop with discussion. These slides should not be taken out of context.