1. 2018-19 City of Smithville Tax Rate Public Hearing and Budget Workshop #2
Wednesday, September 5, 2018
2018/19 Budget Workshop #2

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

3. 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

4. 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 Fawcett – ($300k)
100k Gallon Ground Storage Keilberg Park – ($50k)
NEW 150k Gallon Ground Storage SISD – ($500k)
Miscellaneous Wastewater Improvements at Gazley ($300k)
Wastewater Diverter Valve and Miscellaneous Improvements – ($100k)
Engineering Design Study for Wastewater 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

5. 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
day timeline
2018/19 Budget Workshop #2

6. 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 $ 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

7. City of Smithville Budget Workshop #2
Wednesday, September 5, 2018
Next Steps:
Update budget as recommended by Council.
Finalize / Adopt Tax Rate and Budget (September 10)
Finalize 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

8. THANK YOU!
2018/19 Budget Workshop #2

9. Back Up
2018/19 Budget Workshop #2