2018-19 City of Smithville Tax Rate Public Hearing and Budget Workshop #2 Wednesday, September 5, 2018 2018/19 Budget Workshop #2

City of Smithville Budget Workshop #2 Wednesday, September 5, 2018 Agenda: Workshop #1 Action Item Update FY18-19 Budget Highlights / Requests Proposed Rate Increase(s) Next Steps 2018/19 Budget Workshop #2

City of Smithville Budget Workshop #2 Action Item Update General Fund: Re-distributed local Community philanthropic donations Obtained revised bid for Rec Center janitorial contract (<11%) AMP Cleaning $18.6k Esquivel Janitorial $17.6k Walbert Cleaning $31k Utility Fund: No Change Bonded Debt: Researched Certificate of Obligation process and requirements. 2018/19 Budget Workshop #2

City of Smithville Budget Workshop Wednesday, September 5, 2018 Current Issues Elevated Water Tower(s) and Ground Storage Tank(s) need repainting / repair: 250k Gallon Dorothy Nichols “Golf Ball”– ($350k) 250k Gallon Rec Center “Golf Ball”– ($350k) 600k Gallon Ground Storage Tank @ Fawcett – ($300k) 100k Gallon Ground Storage Tank @ Keilberg Park – ($50k) NEW 150k Gallon Ground Storage Tank @ SISD – ($500k) Miscellaneous Wastewater Improvements at Gazley ($300k) Wastewater Diverter Valve and Miscellaneous Improvements – ($100k) Engineering Design Study for Wastewater expansion @ Willow Creek WWTF - $50k WATER = $1.5M SEWER = $500k ROADS = $500k $2.5M C of O WATER IMPROVEMENTS WASTEWATER IMPROVEMENTS Inadequate funding to cover the $2.0M estimated cost to repair. Recommend Council allow CM and Staff to research possible issuance of Certificate of Obligation (C of O). 2018/19 Budget Workshop #2

City of Smithville Budget Workshop #2 Action Item Update Certificate of Obligation (C of O): Current debt is $5.5M Funding required to refurbish water towers $2.0M C of O for 20-year term at 4% interest Requires public notification 30-days before vote: Description of projects to be financed Amount of debt to be issued Method and timeline of repayment Time and place of governing body’s vote. 5% registered voters could sign petition to force bond election No funds necessary for C of O. Cost of issuance paid by seller Can structure C of O to include combination of projects Must spend 85% of project funds within 3-years 90-120 day timeline 2018/19 Budget Workshop #2

City of Smithville Budget - PRELIMINARY Proposed Rate Increases Wednesday, September 5, 2018 Budget Highlights / Requests: Identified $396k in budget / spending cuts Propose 3% merit ($185k) for all Employees based on performance. Request $155k for Grant Match Funding (FEMA/CDBG/USDA/HOME) Request $250k for Road and Drainage Repair Request lease/purchase of capital equipment (brush chipper) – ($13k) Recommend electric rate increase for large commercial customers and increase fee for contract lighting. ($106k) Propose $0.0300 Property Tax INCREASE ($73k) Recommend Issuing Certificate of Obligation (C of O) for water tower and ground storage tank repair / installation ($2.0M) Delta = >$216k Increase Electric Distribution Rate for Large Commercial Customers from - $.040 to $.050 Increase Contract Light Fee from $4.75 to $8.00 / month Implement Electric Connect Fee for new service = Cost + 10% Proposed Rate Increases 2018/19 Budget Workshop #2

City of Smithville Budget Workshop #2 Wednesday, September 5, 2018 Next Steps: Update budget as recommended by Council. Finalize / Adopt 2018-19 Tax Rate and Budget (September 10) Finalize 2018-19 Goals / Objectives Communicate Budget, Projects, Goals / Objectives (TBD) Complete Annual Performance Appraisal Process Track and communicate performance (On-going) Stay Informed Get Involved Make a Difference 2018/19 Budget Workshop #2

THANK YOU! 2018/19 Budget Workshop #2

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