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CITY OF LAREDO ANNUAL BUDGET WORKSHOP M2005-W-003 CITY COUNCIL CHAMBERS 1110 HOUSTON STREET LAREDO, TEXAS 78040 AUGUST 8, 9, & 10, 2005 5:30 P.M.
I. CALL TO ORDER
With a quorum present, Mayor Elizabeth G. Flores called the meeting to order. II. ROLL CALL
In attendance:
Elizabeth G. Flores, Mayor Alfredo Agredano, Council Member, District I Hector Garcia, Council Member, District II John C. Galo, Council Member, District III Johnny Amaya, Council Member, District IV Johnny Rendon, Council Member, District V Gene Belmares, Council Member, District VI Jose A. Valdez, Jr., Mayor Pro Tem, District VII Juan Ramirez, Council Member, District VIII Gustavo Guevara, Jr., City Secretary Larry Dovalina, City Manager Cynthia Collazo, Deputy City Manager Jaime Flores, City Attorney
III. PLEDGE OF ALLEGIANCE
Mayor Elizabeth G. Flores led in the Pledge of Allegiance. IV. COMMUNICATIONS
None.
V. DISCUSSION AND POSSIBLE ACTION REGARDING THE PROPOSED FISCAL YEAR 2005-2006 ANNUAL BUDGET.
A. Introduction of the budget by City Manager Larry Dovalina, including budget process, vision and goals, and reorganizational changes.
Laredo Mission Statement
Ensuring the prosperity of the community by maximizing Laredo’s preeminent position as the largest inland trade hub of the Americas.
City of Laredo 2005 Strategic Planning Session
Riverfront Redevelopment Downtown Revitalization Diversification of the economy Clean City of Laredo Social Infrastructure Inland Port Trade & Cross Border Issues Government Services Public Safety City of Laredo Goals
Economic Prosperity: Create a trade-based economic model which fosters economic weather.
Safety & Health: Promote an environmentally sustainable community that is the safest and healthiest in Texas with the latest technology and quality services.
Quality of Life: To be the most livable city in Texas by fostering education, promoting sustainable neighborhoods through ample cultural entertainment and adequate recreational space.
Organizational Infrastructure: Provide progressive organization support by being innovative in best practices, technology and resource creation, development and allocation.
Part One: Strategic Environment
Stakeholders Services Trends SWOT Analysis Strengths, Weaknesses, Opportunities, Threats Target Markets Key Success Factors
Part II: Organizing for Success
Mission Statement 2005 Goals and Objectives 2003 Key Areas 2005 Goals Coordination Matrix Proposed Organizational Chart
Stakeholders
1. Residents (including business/NPO’s/Landowners) 2. Government (City, State, & Federal) 3. Mexico/Frontera 4. Visitor/Tourists
How do we (City Staff) Create Value for Stakeholders
1. Help create peace of mind 2. Provide accountability 3. Improve quality of life 4. Render services 5. Create/maintain a comfortable environment 6. Identify/create opportunities for jobs; wealth creation 7. Maintain Trust 8. Provide for life, liberty & pursuit of happiness
1. Economic Development Infrastructure Utilities Transportation (Bridges, Airport, Transit) 2. Public Safety (Police & Fire) 3. Public Health Solid Waste Environmental Protection 4. Quality of Life Education Cultural/Recreation/Leisure Affordable Housing 5. Governmental Operations Financial Accounting Information/Open Government Perception Legislative Services
Increasing demand for services & resources. Aging and very young population; demand on health & social infrastructure. Trade growth and security requirements resulting in costly, unfounded mandates. Increased demand for educational infrastructure – Economic development needs, low Unemployment/dramatic employment growth. Increasing interest in entertainment venues – a need to build resources.
Key Opportunity
Dominant Trade Center of Americas where opportunities will drive the development of infrastructure, education, quality of life and economy.
Key Weaknesses
1. A need for more investment in the educational infrastructure. 2. Need for a clear message (goals) internal & external. 3. Need for a positive perception. 4. Need for more public participation in capital improvement process.
Key Strengths
1. Laredo is the most technologically efficient trade processing land-port of the Americas. 2. Laredo is strategically located and provides the shortest route from Canada to the tip of South America. 3. Laredo has a multicultural community that provides a greater likelihood for unity of purpose. 4. TAMIU offers the only international trade graduate program in the United States.
Target Markets
1. Legislative ignorance of border dynamics. 2. Increased negative image do to heightened International crime. 3. Lack of adequate funding. 4. Keeping up with infrastructure demand. 5. Lack of adequate education. 6. Lack of Public Awareness of City Governance role. 7. Lack of Unity among all levels of Government.
Key Success Factors
We must provide a safe and secure community for our families and all people residing, conducting business, and visiting in our community.
To be successful, the city must be a catalyst for economic development through education, job training, and financial investment.
Must provide or seek partnerships to provide the amenities targeted to individual enrichment and/or recreation.
Key Success Factors/Trade
I. Increase output per lane
A. Technology B. Standardization C. U. S. Mexico Relationships
II. Increase Rail/Air Cargo
Establish an internal unit dedicated to the marketing & facilitating of trade.
III. Increase Tourism
Goal 1.
Economic Prosperity
Create a trade-based economic model which fosters economic wealth.
Objectives:
A. identify trade market & define needs. B. Offer solutions to customers’ needs. C. Implement a unified marketing effort to promote trade. D. Maintain necessary resources to address future growth.
Goal 2. Safety and Health
Promote an environmentally sustainable community that is the safest and healthiest in Texas with the latest technology and quality services.
Objectives:
A. Fire: Respond to any fire emergencies promptly, and educate citizens on ways to prevent fires.
B. Police: Protect and serve the citizens of the community be enforcing the law, by criminal apprehension, and crime deterrence.
C. Environmental: Protect natural resources from environmental degradation through community involvement and education.
D. Solid Waste: Maintain and promote a clean city through waste reduction and proper disposal.
E. Health: Provide disease control through health education, promotion, surveillance, and responsiveness.
F. Traffic & Public Works: To provide safe and efficient traffic movement within the city through implementation of intelligent transportation system technologies by aggressively implementing the City’s thoroughfare plan.
Goal 3. Quality of Life
To be the most livable city in Texas by fostering education, promoting sustainable neighborhoods, providing ample cultural entertainment and adequate recreational space.
Objectives:
A. Education: Create an environment where education is valued. Provide materials and programs, utilize various media; partner with state and local agencies.
B. Sustainable neighborhoods: Beautification programs; rehab/revitalize neighborhoods, address high cost of land.
C. Cultural entertainment: Support cultural events; build facilities that preserve and educate.
D. Recreation/Space: Provide adequate green and open spaces; provide affordable entertainment.
Goal 4. Organizational Infrastructure
Provide progressive organizational support by being innovative in best practices and technology; and by resource creation, development and allocation.
Objectives:
A. R & D: Development of a more efficient workplace through exposure to innovative practices and technology.
B. Communication: Develop internal and external communication to foster stewardship among employees and elected officials.
C. Moral: Instill pride and team unity by recognizing employees for innovative ideas and practices at all levels.
D. Intergovernmental Function: Continue to improve intergovernmental relationships.
E. Resources: Develop innovative financial and budgetary techniques and practices to fund new infrastructure and future operational growth.
Goal 5. Safety and Health Promote an environmentally sustainable community that is the safest and healthiest in Texas with the latest technology and quality services.
Objectives:
A. Fire: Respond to any fire emergencies promptly, and educate citizens on ways to prevent fires. B. Police: Protect and serve the citizens of the community by enforcing the law, by criminal apprehension, and crime deterrence. C. Environmental: Protect natural resources from environmental degradation through community
B. Ad-valorem tax rate.
Elizabeth Martinez, Tax Collector/Assessor gave the following presentation:
Current Year Collection Rate with Original Roll
Tax year Collection Rate % Increase 2004 (est.) 97.00% .02% 2003 96.98% 1.68% 2002 95.37% (.56%) 2001 95.91% .87%
Prior Year Collection Rate with Original Roll
Tax Year Collection Rate % Increase 2004 41.65% 2.19% 2003 39.46% 7.15% 2002 32.31% 1.83% 2001 30.48% 1.44%
Truth in Taxation
A Guide for Setting Tax Rates
The Texas Constitution and the Property Tax Code embody the concept of truth-in-taxation to require taking units to comply with certain steps in adopting their tax rates.
Four Principals in Truth in Taxations
Right to know of increases in property value and estimated taxes that could result from the new value.
Most taxing units must publish effective and rollback rates before adopting an actual tax rate.
Most taxing units must publish special notices and hold a public hearing before adopting a tax rate that exceeds the lower of the rollback rate or the effective tax rate.
If a taxing unit adopts a rate that exceeds the rollback rate, voters may petition for an election to limit the rate to the rollback rate.
Effective Tax Rate
The effective tax rate is a calculated rate that would provide the taxing unit with about the same amount of revenue it received in the year before, on properties taxed in both years.
The Rollback Tax Rate
The rollback rate is calculated maximum rate allowed by law without voter approval.
It provides the taxing unit with about the same amount of tax revenue it spent the previous year for day to day operations, plus an extra 8 percent for those operations, and sufficient taxes to pay its debts in the coming year.
Preliminary Effective & Rollback Tax Rate comparisons
(Final calculations expected later this week)
Tax year 2004 Tax Year 2005 Effective Tax Rate .605067 .602735 Rollback Rate .638270 .645241 Adopted Tax .637000 .637000 (Proposed) City of Laredo Tax Rate History
Tax year Rate Increase/Decrease from Prior 2005 .637000 .000000 2004 .637000 (.004761) 2003 .641761 .011227 2002 .630534 .054176 2001 .576358 .000000
C. Personnel issues, including proposed employee pay plan and employee health and benefits plan.
Dan Migura, Administrative Services Director, gave the following presentation:
Proposed Pay Plan
2.5% (COLA) Cost of living adjustment
Effective Date 09-25-05 – Except unless otherwise addressed in a Collective Bargaining Agreement.
Retain the current merit pay plan.
Cost of Living Adjustment Summary
2005-2006 2.5% Proposed COLA 2004-2005 2.3% 2002-2003 2.8% 2001-2002 3.0%
Entry Level Wages of Index Cities
San Antonio $8.75 Laborer El Paso $8.57 Laborer McAllen $8.30 Laborer Corpus Christi $7.60 Laborer Laredo $7.48 (7.67*) Laborer Brownsville $7.43 Laborer Harlingen $7.31 Laborer
Average hourly salary $7.99
* Proposed for 9-25-05
Entry level Wages of Local Entities
Location Title Salary
Webb County Custodian $8.25 TAMIU Custodian $8.05 City of Laredo Custodian $7.48 (7.67*) U. I. S. D. Custodian $6.70 L. I. S. D. Custodian $6.51 L. C. C. Custodian $6.40
Average hourly salary $7.18 Proposed for 9-25-05
Merit Distribution
Percentage of Increase Evaluation Score Evaluations Processed
0% 2.5 or Less Below 5 Standard
1% 3.0 – 3.49 34 Occasionally below
2% 3.5 – 3.99 118 Meets all Standards
3% 4.0 – 4.49 363 Occasionally Exceeds
4% 4.5- 5.0 476 Consistently Exceeds
Motion to instruct City Manager to implement recommended pay plan.
Moved: Cm. Garcia Second: Cm. Amaya For: 8 Against: 0 Abstain: 0
FACTS
Escalating medical and prescription cost trends continue to deplete the City’s health and benefits funds.
Since the plan was implemented in 1989 the following modifications have occurred:
1991 Rate Adjustment 1996 $10.00 Physician office co-payment introduced October 2000 – 10% Rate Increase October 2001 – 20% Rate increase and plan modification October 2002 – 10% Rate Increase October 2003 – 5% Rate Increase and plan modification October 2004 – 5% rate Increase
Current employee health benefits plan adjustments last year
Increased medical contribution rate by 5%
Options considered
· Increase deductible · Increase out of pocket maximum · Change prescription plan · Increase medical contribution rate · Introduce the core benefits medical plan with a reimbursement/savings · Establish maximum amount to be paid for multiple births; resulting from fertility treatment
Proposed Employee Health Benefits Plan
· Increase medical contribution rate by 10% · Increase deductible from $250 to $500 · Increase out of pocket from $1,000 to $3,000 · Increase mail order for brand name prescription from $20 to $30 · Implement the core benefit medical plan with a reimbursement/savings
Proposed Dependent Medical Contribution
Current Proposed Adjustment Regular Employee $114.42 $125.86 $11.44
Bi-weekly Deduction $102.95 $113.25 $10.50
Medical Claims
Actual Budget Amount 01-02 $6,512,473 $6,612,500 +$100,027 02-03 $6,798,080 $6,804,375 -$ 6,295 03-04 $9,690,796 $9,027,338 -$663,458 04-05 $8,566,787 $8,036,017 -$650,770
05-06 $7,704,803 Proposed
Prescription Claims
01-02 $1,175,257 $1,127,646 -$ 47.611 02-03 $1,330,969 $1,480,384 +$149,415 03-04 $1,415,797 $1,537,467 +$121,670 04-05 $1,420,464 $1,588,514 -$ 18,050
05-06 $1,328,707 Proposed
Stop Loss
01-02 $938,477 935,126 02-03 $946,718 $1,068,629 03-04 $897,195 $ 903,165 04-05 $913,528 $1,020,982
Proposed – 05-06 $1,463,910 Proposed
Motion to wait on action recommendations until after a City Council Workshop.
Moved: Cm. Belmares Second: Cm. Amaya For: 8 Against: 0 Abstain: 0
D. Proposed General Fund highlights.
Martin Aleman, Budget Director, gave the following presentation:
Consolidated Budget Total Available $469,568,491
Permanent Fund $ 62,273 Enterprise Funds $180,948,048 General Fund $123,829,204 Special Revenue $ 80,186,773 Debt Service $ 30,323,953 Internal Service $ 27,529,334 Capital Improvements $ 25,812,246 Other Programs $ 865,660
Consolidated Operating Revenues $354,248,255
Debt Service 11% Bridge 11% Water 6% Transit System 5% Solid Waste 5% Health & Benefits 4% Sewer 4% Health 3% Other 3% Parks Capital Grant 3% Airport 2% Police Program 2% Community Development 2% Fleet 2% Risk 2% Sports & Community 2% Hotel Motel 1% General Fund 31%
Consolidated Operating Expenditures $384,308,589
Debt Service 10% Bridge 10% Water 6% Sewer 6% Transit System 6% Solid Waste 5% Other 5% 2005 Co 4% Health Benefits 4% Health 3% Parks Capital Grant 3% Special Police Programs 2% Community Development 2% Risk 2% Fleet 2% Airport 1% General Fund 29%
General Fund Revenue
Taxes 57.6% Charges for Service 25.5% Franchise Fees 5.4% Licenses & Permits 5.4% Fines and Forfeits 2.5% Rents & Royalties 1.2% Reimbursements 0.6% Fees & Collections 0.6% Other Financing Sources 0.6% Intergovernmental 0.04%
General Fund Major Revenues
FY02-03 FY03-04 *FY04-05 Property Taxes (M & O) $25,326,758 $29,235,657 $33,423,414 General Sales & Use Tax $18,037,788 $19,552,556 $20,947,598 Bridge Transfer $16,218,753 $16,578,708 $16,541,046 Electric System Franchise Fee $ 3,907,595 $ 3,904,908 $ 4,185,717
* Estimated
Tax Rate History FY02-03 FY03-04 FY04-05 FY05-06 Debt 0.145776 0.141113 0.128323 0.125231 M & O 0.484758 0.500648 0.508677 0.511769
Tax Collection Rate on Original Levy
FY02-03 FY03-04 FY04-05 FY05-06 95.37% 96.98% 97.00% 97.50%
Valuations
FY02-03 FY03-04 FY04-05* FY05-06* $5,553,035,309 $6,084,943,926 $6,759,761,224 $7,436,736,008
Sales Tax Trend History
FY02-03 FY-3-04 FY04-05* FY05-06* Arena’s Allocation $ 4,509,447 $ 4,822,212 $ 5,230,348 $ 5,662,179 Transit’s Allocation $ 4,331,368 $ 4,690,014 $ 4,915,856 $ 5,161,649 City’s Allocation $18,037,788 $19,552,556 $20,947,598 $22,728,147
Estimated
General Fund Expenditures by Activity
Traffic 3.6% General Government 12.2% Cultural & Recreational 9.3% Other Financing Uses 10.7% Public Works 6.3% Health & Welfare 0.4% Public Safety/Police/Fire 57.5%
General Fund Expenditures by Category
Debt Service 0.04% Capital Outlay 0.31% Other Charges 1.76% Materials & Supplies 5.25% Intergovernmental Transfers 5.78% Contractual Services 12.94% Personnel 73.92%
FY02-03 FY03-04 FY04-05* FY05-06*
Engineer/Public Works $ 3,867,169 $ 4,056,282 $ 4,294,274 $ 4,892,133 Cultural & Recreation $ 5,150,024 $ 5,703,290 $ 5,946,548 $ 6,922,607 General Government $ 7,655,020 $ 8,565,490 $ 9,471,028 $10,538,462 Public Safety $49,162,062 $53,279,827 $54,851,922 $59,089,759
Time Equivalents General Fund Only FY02-03 FY03-04 FY04-05* FY05-06* Engineering/Publicworks 117.00 118.50 105.50 105.50 Culture & Recreational 199.56 202.67 199.18 199.18 General Government 192.34 205.34 199.79 207.37 Public Safety 767.50 766.25 761.42 775.42
FTE History (All Funds) FY02-03 FY03-04 FY04-05* FY05-06* Transit System 189.25 181.31 179.31 179.31 All Other 1,005.03 992.99 1,104.21 1,082.65 General Fund 1,276.40 1,292.76 1,265.89 1,287.47
Consolidated Closing Balance $85,259,902
General Fund 15.76% Special Revenue Funds 25.49% Debt Service 6.21% Enterprise Funds 51.30% Internal Service Funds 1.15% Permanent Funds 0.07% Other Programs 0.02% General Fund 15.76%
General Fund Closing Balance History
02-03 03-04 04-05 05-06 10,020,026 10,327,107 13,433,977 13,433,977
E. Engineering/Public Works Department funding and operations, and status of construction projects.
Rogelio Rivera, City Engineer, gave the following presentation:
Mission Statement:
To plan and implement City infrastructure, and to provide quality control/inspection of construction.
Engineering/Public Works Department
Performance Measures
2004-2005 Construction Projects
Babe Ruth Baseball Field Fencing Zacate Creek Linear Park III, IV & V Farias Community Center Landfill Parking Lot Ejido Ave. Extension Santa Rita Park El Metro Bus Bays Los Obispos Phase 1 Arkansas Ave./ Clark Blvd. Reconstruction San Eduardo Ave. / Sanchez St. Reconstruction Market/Bartlett Intersection Reconstruction CDBG Sidewalks Projects (25 thru 30) Highlighted projects assigned to Public Works for 2004-05 are the following:
Eastwood Park Phase 2 Cielito Lindo Blvd. Access Villa del Sol Resurfacing (45 blocks) Lyon St. Paving Project McPherson Widening (Villa/Mahogany) Shiloh/Orange Blossom Drainage and Paving San Lorenzo Paving Project City Wide Resurfacing Project McPherson Acres Drainage Improvements Chacon Creek Tributary Drainage Improvements Gale Street Drainage Improvements El Metro – Transit Sidewalks Ejido Sidewalks
2004-05 Projects Designed In-House
McPherson Widening – villa to Mahogany Farias Recreation Center Si9te Drainage Improvements DD Hachar Recreation Center Site Drainage Improvements Bridge 5 Concept Plans Eastwood Park Parking Lot Grade Modifications Lyon at Tilden Intersection Reconstruction Springfield Hillside Intersection Reconstruction Springfield at San Pedro Intersection Reconstruction Springfield at Ash Intersection Reconstruction Springfield at Mann Rd. Intersection Reconstruction Springfield (San Pedro – Olive) Curb Realignment and Sidewalk improvements Iturbide/San Agustin Parking Lot Conceptual Iturbide/Santa Ursula Parking Lot Conceptual El Metro = Transit Projects Ejido Sidewalks
Surveying Work 10 Month 12 Month Subtotal Projected Boundary Surveys 39 48 Construction Surveys 65 78 Street Closing Surveys 12 15 Misc. Surveys 42 50 Total 158 191
2004-2005 Infrastructure Improvements
178 Construction Projects $100,364,971 Prof. Service Contracts $ 8,312,448 Total Number of subdivisions 106 Total Sub. Improvements $ 53,387,278 Street Cut Permits Issued 3,442 Paving 915 Blocks Sidewalks 797 Blocks Storm Sewer 53,026 LF Sanitary Sewer 210,232 LF Water 223,400 LF Lots (Subdivision) 4,186 Lots Acres (Subdivisions) 1,263 Acres Buildings 75,653 SF
Subdivision Growth
FY2000 – 73 FY2001 – 55 FY2002 – 56 FY2003 – 80 FY2004 – 113 FY2005 - 106
$6.0 M Transit Sales Tax Projects Status
Bartlett/Saunders intersection – Prelim Plans. – pending Row Acq. Calton Road Reconstruction · San Francisco – San Dario: Complete P.W. · Sta. Ursula – 800’ West of San Bernardo: Award Feasibility Contract Hillside/McPherson Intersection: Prelim. Plans/ Pending ROW Acq. Market/Bartlett Intersection: Construction Contract Awarded Sidewalk/Malinche Intersection: 100% P. W. Santa Maria – Industrial to Del Mar: Plans 90% Gustavus/Tapeyste Intersection: 100% P. W. Springfield Intersections: P.W. Hillside: 50% San Pedro: 100% Ash: 100% Frost: 0% Gustavus: 0% Corpus Christi: 100% Mann Road: 100% San Eduardo-Sanchez: Construction Contract Awarded McPherson Widening Villa/Mahogany 2200 l.f. 30% P.W. Mahogany – Shiloh: 0% Bartlett Sandman-Hillside: Preliminary Plans, Pending ROW Acq. Bus Bay US 83 @ Cielito Lindo: Deferred Arkansas/Clark Interseciton: Construction Contract Awarded Concord Sub. @ Hwy 359 Entrance: 80% PW
Bond 2005 – 2006 Projects
Maryland/Taylor Drainage Improvements Flecha lane Drainage Improvements Zacate Creek Upper Reaches Concrete Channelization |