Municipal budget workshop100223

City of WeslacoCity of WeslacoBudget WorkshopBudget Workshop

Leonardo Olivares, City ManagerLeonardo Olivares, City ManagerOmar Gonzales, Finance DirectorOmar Gonzales, Finance Director

Anne Burger Entrekin, FirstSouthwestAnne Burger Entrekin, FirstSouthwest

6:00pm; 23 February 2010Weslaco City Hall

Weslaco City CommissionWeslaco City Commission

Buddy de la Rosa, MayorBuddy de la Rosa, Mayor

Rene Rodriguez, Jr., Mayor Pro-Tem, District 3Rene Rodriguez, Jr., Mayor Pro-Tem, District 3

Robert J. Garza, Commissioner, District 1Robert J. Garza, Commissioner, District 1

John F. Cuellar, Commissioner, District 2John F. Cuellar, Commissioner, District 2

Gerardo “Jerry” Tafolla, Commissioner, District 4Gerardo “Jerry” Tafolla, Commissioner, District 4

Lupe V. Rivera, Commissioner, District 5Lupe V. Rivera, Commissioner, District 5

Patrick B. Kennedy, Commissioner, District 6Patrick B. Kennedy, Commissioner, District 6

Presentation OutlinePresentation Outline

1.1. Bond RatingsBond Ratings

2.2. City’s Current Fiscal ConditionCity’s Current Fiscal Condition

3.3. Retooling NOW: Possible OptionsRetooling NOW: Possible Options

1. Bond Ratings1. Bond Ratings

Anne Burger EntrekinAnne Burger EntrekinManaging DirectorManaging Director

FirstSouthwestFirstSouthwest

2. City’s Current Fiscal Condition2. City’s Current Fiscal Condition

Revenues Revenues 33% of FY10 33% of FY10 Budget (YTD)Budget (YTD)

Property Taxes (>FY09)Property Taxes (>FY09) 4.04.0 Sales Taxes (>Dec 09)Sales Taxes (>Dec 09) 7.47.4 General FundGeneral Fund 38.038.0 Hotel/Motel Tax FundHotel/Motel Tax Fund 0.00.0 Water FundWater Fund 30.030.0 Sewer FundSewer Fund 28.028.0 Sanitation FundSanitation Fund 33.033.0 Airport FundAirport Fund 15.015.0


ExpendituresExpenditures 33% of FY10 33% of FY10 Budget (YTD)Budget (YTD)

General FundGeneral Fund 36.036.0 Hotel/Motel Tax FundHotel/Motel Tax Fund 81.081.0 Water FundWater Fund 24.024.0 Sewer FundSewer Fund 28.028.0 Sanitation FundSanitation Fund 25.025.0 Airport FundAirport Fund 31.031.0


51,672.26

82,129.61

119,813.14

77,941.34

2,350.44

203,905.48

76,853.87

94,116.6085,934.19

122,850.52

215,876.31

86,943.19

48,684.11

$0

$50,000

$100,000

$150,000

$200,000

$250,000

00-L

EGIS

LATIVE

01-A

DMIN

02-C

ITY S

EC

03-M

UN CO

URT

04-E

LECTI

ON

05-F

INANCE

06-T

AX COLLECTIO

N

07-P

ERSONNEL DIR

08-P

URCHASIN

G

09-L

AW

10-B

LDG M

AINT

11-P

LANNIN

G

14-T

RAFF

IC S

AFETY

BUDGET

ACTUAL


264,451.50

36,340.13

131,876.25

14,702.6330,000.00

266,047.13

48,602.25

172,500.00

42,041.63

98,056.50

50,577.00

505,095.75

390,094.88

22,653.38

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

17-C

ODE ENFORCEM

ENT

18-E

MERGENCY M

ANAGEMENT

19-E

MERGENCY M

EDICAL

SERV

20-P

UBLIC W

ORKS A

DMIN

ISTR

21-U

RBAN DEVELOPM

ENT

24-S

TREETS &

HIG

HWAYS

25-S

TREET C

LEANIN

G

26-S

TREET L

IGHTIN

G

29-D

RAIN D

ITCH M

AINTENANC

30-M

I S

31-V

ITAL

STATISTIC

S

40-P

ARKS & R

ECREATION

41-L

IBRARY

42-S

WIM

MIN

G PO

OL

BUDGET

ACTUAL


2,399,024.63

198,696.87

1,776,654.68

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

12-POLICE 15-FIRE MARSHALL 16-FIRE SUPPRESSION

BUDGET

ACTUAL


ExpendituresExpenditures

Composition of Expenses for Fiscal Year 2009-2010

Personnnel Services76%

Other Charges18%

Supplies5%

Capital Outlay0%

Operating Transfers1%

Personnnel Services

Other Charges

Supplies

Capital Outlay

Operating Transfers

3. Retooling NOW: Possible Options3. Retooling NOW: Possible Options

Objective: Assure community, City Commission, Objective: Assure community, City Commission, employees and financial institution of City’s employees and financial institution of City’s managerial and financial stability.managerial and financial stability.

Retool municipal operations to ensure the right services are Retool municipal operations to ensure the right services are provided efficiently.provided efficiently.

Establish general fund reserve of 25%.Establish general fund reserve of 25%. Strategies:Strategies:

1.1. Targeted ReductionsTargeted Reductions2.2. Improved ProductivityImproved Productivity3.3. Enhanced RevenuesEnhanced Revenues4.4. Fund ManagementFund Management

3. Retooling NOW: Possible Options3. Retooling NOW: Possible Options

TARGETED REDUCTIONS Number Department Recommendation Schedule Estimated

Savings TR-G1 Eliminate bottle water purchases Short $ 1,500 TR-G2 Ordinance-Fund Balance Short TR-G3 Limit Overtime to essential services and emergencies Short $150,000 TR-G4 Adopt energy conservation program (eg, turn off lights when not in use; lower

AC after business hours or on weekends). Short $ 50,000

TR-G5 Reduce workforce by attrition and retirement Long NA TR-G6 Maintain hiring freeze on all positions Long NA TR-G7 To privatize Sanitation Long NA TR-G8 Negotiate new electricity provider Short $300,000 TR-G9 Reduce Police/Fire Collective Bargaining yearly increases Short NA TR-D1 Water Eliminate water meter reader and data entry positions/tasks through attrition

since City now uses electronic meter readers. Long $200,000

TR-D2 Water Terminate slug transportation to Alton; transfer slug to local landfill Long N/A TR-D3 Street Lights Inform AEP of energy efficient street lights and traffic signals that City has

installed so as to obtain lower charges for electricity. Short N/A

3. Retooling NOW: Possible Options3. Retooling NOW: Possible OptionsIMPROVED PRODUCTIVITY Number Department Recommendation Schedule Estimated

Savings IP-G1 Purchasing Increase all departments’ discretionary purchasing

from $100 to $200 Short NA

IP-G2 Purchasing Issue Purchasing Cards (P-Cards) to Dept. Directors Short NA IP-G3 Purchasing Eliminate unnecessary reviews (eg, Finance Dir.); Obtain City Manager

approval only when necessary (ie, professional development travel that has no certification or licensing).

Short NA

IP-G4 Human Resources; Finance

Establish Employee Incentive Program (EIP) to reward employees with cost-saving ideas;

Short NA

IP-G5 MIS Use website to disseminate forms, documents, notices, announcements and other information.

Short NA

IP-G6 Water/Sewer Replace all meters with electronic meters to enhance revenue and reduce water loss

Long NA

IP-G7 Police Create vehicle replacement program Long NA IP-D1 Pub. Facilities Perform vehicle maintenance in-house. Short $50,000 IP-D2 Water, Sewer,

Solid Waste Establish Public Utilities Board (PUB) to manage and operate municipal utilities.

Long NA

IP-D3 Water/Sewer Online Bill Pay Short NA IP-D4 Finance Rotate Auditor Short NA IP-D5 Finance Consolidate Departments Long NA

3. Retooling NOW: Possible Options3. Retooling NOW: Possible OptionsREVENUE ENHANCEMENTS Number Department Recommendation Schedule Estimated

Savings RE-G1 Finance Monitor delinquent property tax collections to ensure 95% or more of taxes

are paid Short NA

RE-G2 Finance Update municipal user fee schedule (ie, include new fees, exclude old fees); adopt ordinance prohibiting waiver of fees

Short NA

RE-G3 Human Resources; Finance

Support Sponsored Projects Task Force: 1) identify grant sources (eg, federal, state, regional) and private (eg, corporate, philanthropic and community foundations); 2) apply for funds; 3) lobby for awards; and 4) continue to develop relationships with funders.

Short NA

RE-G4 Finance; Planning; Police

Ensure businesses and street vendors have proper business licenses. Short NA

RE-G5 Finance Evaluate performance of new revenue forecasting model Short NA RE-G6 Finance Consider using Municipal Cost Index (MCI) instead of Consumer Price Index

(CPI) to more accurately forecast municipal expenditure during next budget cycle

Short NA

RE-D1 MIS Negotiate better terms for PEG Channel 17 Short NA RE-D2 Water Adjust rates (base and incremental) and customer classes as needed to

maintain operations and reserves, amortize debt. Short NA

RE-D3 Code Enforcement

Fine citizens for weedy lots thru municipal court Short NA

RE-D4 Sewer Adjust rates (base and incremental) and customer classes as needed to maintain operations and reserves, amortize debt.

Short NA

RE-D5 Solid Waste Adjust rates (base and incremental) and customer classes as needed to maintain operations and reserves, amortize debt.

Short NA

RE-D6 Solid Waste Consider privatization to: 1) maintain existing service levels; 2) increase franchise fees; 3) obtain marginal revenues; and 4) avoid capital expenditures.

Short NA

3. Retooling NOW: Possible Options3. Retooling NOW: Possible OptionsFUND MANAGEMENT Number Department Recommendation Schedule Estimated

Savings FM-G1 Finance;

Purchasing Implement Fixed Asset Policy that disposes of surplus materials & equipment by: 1) transferring to other departments; or 2) selling (to public, other governments or as scrap).

Short NA

FM-G2

Finance Negotiate terms with depository institution for enhance money management Short NA

FM-G3 City Manager; Finance

Obtain required training for City’s Investment Officer; review and update Investment Strategy Statement

Short NA

FM-G4 Finance; others Billing Procedures: send out all bills promptly; assess late penalties where appropriate; bill more frequently if possible (ie, monthly instead of quarterly).

Short NA

FM-G5 Finance; others Collection Procedures: establish convenient payment locations; aggressively pursue delinquent accounts

Short NA

FM-D1 Finance Deposit Procedures: promptly make deposits (ie, daily); Short NA FM-D2 Disbursement Procedures: delay payments to take advantage of float if

possible (ie, send check out on Fridays); write checks less frequently if possible (ie, bi weekly instead of weekly); pay for goods/services only after receiving them.

Short NA

FM-D3 Reconcile water accounts with North Alamo and Military Water Supply Corporations

Short NA

DiscussionDiscussion

Mayor & CommissionersMayor & Commissioners City StaffCity Staff Financial AdvisorFinancial Advisor

Municipal budget workshop100223

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Transcript of Municipal budget workshop100223