HomeMy WebLinkAboutCCpkt 2017-09-05A
Y{OUR} HOMETOWN
AGENDA
City Council Special Meeting
Tuesday, September 5, 2017 @ 6:30 PM
Anna City Hall, Council Chambers, 111 N. Powell Parkway, Anna,
Texas
The City Council of the City of Anna will meet in Special Session at 6:30 PM, on
September 5, 2017, at the Anna City Hall, Located at 111 North Powell Parkway (Hwy
5), to consider the following items.
1. Call to Order, Roll Call and Establishment of Quorum
2. Invocation and Pledge of Allegiance
3. Conduct a Public Hearing on the proposed FY 2017-2018 Budget. (Dana
Thornhill)
4. Conduct a Public Hearing on the Proposed 2017 Tax Rate (Dana Thornhill)
5. Adjourn.
This is to certify that I, Carrie L. Smith, City Secretary, posted this agenda at a place
readily accessible to the public at the Anna City Hall and on the City Hall bulletin board at
or before 1 st day of September, 2017.
Carrie L. Smith, City Secretary
1. The Council may vote and/or act upon each of the items listed in this agenda.
2. The Council reserves the right to retire into executive session concerning any of the items listed on
this agenda, whenever it is considered necessary and legally justified under the Open Meeting Act.
3. Persons with a disability who want to attend this meeting who may need assistance should contact
the City Secretary at 972 924-3325 two working days prior to the meeting so that appropriate
arrangements can be made.
I
Item No. 3.
City Council Agenda
Staff Report
Meeting Date: 9/5/2017
y{OUR) HOMETOWN
AGENDA ITEM:
Conduct a Public Hearing on the proposed FY 2017-2018 Budget. (Dana Thornhill)
SUMMARY:
The Annual Budget is one of the most important financial responsibilities of a local government,
and preparation of the budget typically takes 6 months to complete. Since April, each City
Council meeting has included a workshop presentation and discussion of the proposed budget.
These workshops included detailed discussions of all department operating budgets and a
review of supplemental requests for new or enhanced services proposed for the upcoming fiscal
year.
The Annual Budget is developed through an extensive process of reviewing requests received
from various City departments then prioritizing those requests in a manner that utilizes resources
effectively, within fiscal constraints, while working to achieve the City's strategic goals. The final
version of the proposed budget was presented to the City Council on July 25th and can be found
on our website at www.annatexas.gov under the Finance Department.
The proposed budget is funded by a property tax rate of $0.601288 which is $0.027712 lower
than the current tax rate of $0.629. If approved, this would be the fourth straight year that the City
Council has reduced the property tax rate. When compared with other cities in our area, the City
of Anna continues to have one of the lowest average -household property tax levies.
According to the most recent population estimates, the City of Anna's population grew 9.5% in
2016, and we anticipate a steady increase of 7 to 10 percent annual growth over the next few
years. In order to keep pace with the service requirements of a rapidly growing city, the proposed
budget recommends the addition of seventeen (17) new full-time positions and one (1) part-time
position. New employees will be added to several City departments, including: Police, Fire,
Streets, Water, Wastewater, Parks, and Finance.
In November of 2016, a ballot proposition to reallocate a portion of the local option sales tax to
the General Fund was approved. As a result, the portion of the sales tax revenue allocated to the
General Fund increased from 1 % to 1.25%. The revenue generated in FY 2018 by the additional
0.25% sales tax allocation will be added to the Streets department budget to pay for capital
improvement projects.
The City is evaluating the issuance of bonds in FY 2018 to pay for several new street projects
including the reconstruction of Hackberry Lane between SH 5 and Slayter Creek. Future revenue
from the sales tax reallocation may be used to offset bond payments for the Hackberry Lane
project and other roadway improvement projects.
As Anna continues to grow, the City remains committed to the vision and goals outlined in its
Strategic Plan. The 2017-18 fiscal year budget is designed to preserve and enhance the quality
of existing services and respond appropriately to our city's continuing growth and development.
The Council will vote to adopt the FY 2018 budget on September 12th
STAFF RECOMMENDATION:
This is a public hearing only. No City Council action is required at this time.
ATTACHMENTS:
Description Upload Date Type
Presentation on Proposed Budget 8/28/2017 Backup Material
i
FY 18 Budget Hearing
CITY OF AN NA, TEXAS
What's in the Budget?
• Lower Tax Rate • Additional Streets funding from the sales tax
• Maintain Utility Rates reallocation
• Funds to be transferred out for future
• Additional personnel — 17.5 FTE municipal facilities
• Pay Range Reclassification for Fire
• Funds to enter into an open-end/equity lease
Captains and Fire Fighters with Enterprise Fleet Management
• STEP Pay Plan for Police
• Increase in budgeted cost for treated surface
• Merit and COLA/Market adjustment water and for transportation and treatment
L• Increase in the City's contribution for
-A.- medical premiums
general Fund Revenue and Expenditures
FY 18 PROPOSED GENERAL FUND
REVENUE
FRANCHISE
TAX OT14ER
DE
SALES T
23%
FY18 PROPOSED GENERAL FUND BUDGET
AMBULAI`
2%
FIRE
15%
ANIMAL
CONTROI
1%
DEVEL
MUNICIPAL
POLICE COURT
26% 2%
FINANCE CITY SECRETARY CITY MANAGER'S
6% 2% OFFICE
6%
STREET
15%
ANSFER OUT
6%
ISTRATION
5%
General Fund Revenue
FY 16 ACTUAL FY 17 BUDGET
PROPERTY TAX T $3,314,026 T $3,681,042
SALES TAX - GENERAL $771,155 $750,000
SALES TAX - STREETS
DEVELOPMENT
FRANCHISE FEES
COURT FEES
OTHER * R
Total
$0 $0
$759,102 $440,100
$446,273 $450,000
$84,360 $100,000
$470,646 $591,423
$5,845,562 $6,012,565
$1,121,040
$159,821
$884,500
$460,000
$89,000
$742,497
$7,163,028
$1,360,028
$336,326
$674, 500
$460, 000
$89,000
$304,013
$7,492,871
81.34%
0%
53.26%
2.22%
-11.00%
-48.60%
24.62%
General Fund Expenditures
ACTUAL BUDGET 'Or- ESTIMATE PROPOSED % CHANGE
ADMINISTRATION $280,118 $305,684 $325,246 $365,962 19.72%
CITY COUNCIL $16,588 $30,025 $31,271 $36,625 21.98%
CITY MANAGER'S OFFICE $309,587 $321,845 $326,296 $417,488 29.72%
CITY SECRETARY 06,881
$126,847 1 $127,341 143,838
FINANCE $403,522
$432,876
$386,398
$428,440
RVELOPMEN $640,4j�
$557,637
1 $674,034=
$627,318
ANIMAL CONTROL $48,866
$56,799
$56,799
$56,799
FIRE 08,963 $966,
$936,1 _
$1,099,0 W
AMBULANCE $135,968
$143,173
$143,173
$142,270
POLICE
MUNICIPAL COURT
PARK
STREET
XTER TO GRANT FUND
XFER FOR MUNICIPAL FACILITIES
TOTAL
$1,714,448
$1,913,883
$1,819,167
$1,923,135
$110,420
$122,226
$127,351
$133,573
$265,825
_I $37ME
$348,620 485M=
$599,689
$664,268
$684,293
$1,155,613
$0
�$71,134
$0
$0
$117,785
$405,886
$5,341,317
$6,012,565
$6,103,954
$7,492,871
13.40%
-1.02%
12.50%
$0
13.75 %
-0.63%
0.48%
9.28%
30.88%
73.97%
19.00%
245%
24.62 %
Utility Fund Revenue and Expenditures
FY 2018 PROPOSED REVENUE
TRANSFERS IN
8%
I',
SOLID WA
11%
WATER
45%
I
SOLID WA
9%
SE
FY 2018 PROPOSED
XFER TO CAPITAL
UTILITY PROJECTS
BUDGET
ADMINISTRATION
WATER
38%
Utility Fund Revenue
���Emqmr
1
0
ACTUAL
BUDGET
ESTIMATE
PROPOSED
% CHANGE
WATER
$3,455,636
$3,430,964
$3,739,100
$3,787,856
10.40%
SEWER
$2,099,783
$2,274,144
$2,379,995
$2,653,438
16.68%
SOLID WASTE
$818,317
$846,000
$872,486
$930,013
9.93%
INSPECTION FEES
$313,188
$145,000
$769,000
$322,187
122.20%
TRANSFERS IN
$187,000
$467,424
$467,424
$674,435
44.29%
TOTAL
$6,873,924
$7,1631532
$8,228,005
$8,367,929
16.81%
I
Utility Fund Expenditures
ADMINISTRATION
SEWER
SOLID WASTE
UTILITY BILLING
XFER TO CAPITAL PROJECTS
TOTAL
CHA
$575,689 $583,571 $552,057 $740,765 26.94%
� 1
$2,600,965 $2,591,239 $21472,737 1"22.35%
$2,768,502 $2,519,165 $2,040,092 $2,617,387 3.90%
r
$693,798 $731,000 $736,352 $785,319
$240,278 $307,022
$15,000 $431,535
$6,894,230 $7,163,532
$313,425 $379,545 23.62%
$467,424 $674,435MM016.29%
$6,582,086 $8,367,929 16.81%
I
Item No. 4.
City Council Agenda
Staff Report
Meeting Date: 9/5/2017
y{OUR) HOMETOWN
AGENDA ITEM:
Conduct a Public Hearing on the Proposed 2017 Tax Rate (Dana Thornhill)
SUMMARY:
The City Council scheduled September 5, 2017 at 6:30 p.m. as the date and time for the second
public hearing on the proposed 2017 Tax Rate.
Each year after properties are appraised by the Collin County Appraisal District the Collin County
Tax Office calculates both the effective tax rate and the rollback tax rate for the City of Anna as
part of the service to collect taxes for the City. The following definitions are provided from the
Texas Comptroller's Office:
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.
If property values rise, the effective tax rate will go down and vice versa.
Rollback tax rate: The rollback rate 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 increase for
those operations, in addition to sufficient funds to pay debts in the coming year. If a taxing unit
adopts a tax rate higher than the rollback rate, voters in the taxing unit can circulate a petition
calling for an election to limit the size of the tax increase.
The proposed budget is supported by a tax rate of $0.601288 which is $0.027712 less than the
current rate of $0.629000. The following table is a comparison between the proposed tax rate,
last year's rate, the effective rate and roll -back rate.
Proposed FY 2018 Tax Rate
$0.601288 per $100
Preceding FY 2017 Tax Rate
$0.629000 per $100
Effective Tax Rate
$0.550525 per $100
Rollback Tax Rate
$0.601288 per $100
The effective tax rate is lower than the current rate because the value of properties taxed in both
years has increased.
The budget and tax rate are scheduled for adoption at the September 12th Council meeting.
Since the proposed tax rate is higher than the effective rate, section 26.05 of the Texas Tax
Code requires a minimum of 60% of the Council members to vote in favor of that rate. That would
require at least 5 Council members to vote in favor of the proposed tax rate.
STAFF RECOMMENDATION:
This is a public hearing only. No action by the City Council is required at this time.
ATTACHMENTS:
Description Upload Date Type
Presentation on Proposed Tax Rate 8/28/2017 Backup Material
i
2017 Tax Rate Hearing
CITY OF AN NA, TEXAS
Tax Rate Summary
Proposed Tax Rate
Current Tax Rate
Effective Tax Rate
Rollback Tax Rate
I
$0.601288
$0.629000
$0.550525
$0.601288
What's Happening with the Tax Rate?
• The FY 18 budget is funded and balanced with a
tax rate lower than the FY 17 budget
• Fourth consecutive year the City has lowered the
tax rate
.639
.629
.601288
Proposed 2017 Tax Year
0.800
0.690
0.700
0.645 0.658
0.601 0.610 m
0.600
0.500 0.447
0.40u 0.360
0.300
0.200
um
0.515 0.520 0.540
Fairview Frisco Allen Prosper McKinney Anna Melissa Celina Little Elm Princeton
Average Household levy
2,500
21284
2,111
2,000
1,672 1,685 11700 11714 11753
1,587
1,500
11088 11157
1,000
500
0
Anna Princeton Melissa Little Elm Frisco McKinney Allen Fairview Celina Prosper