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