FY 2022 Budget Process Overview

FY 2022 Budget Process OverviewPRESENTED TO THE CITY COUNCIL

JULY 19, 2021

Overview• Staff Goals and Responsibilities

• Budget Themes

• Fiscal Forecast Snapshot

• FY 2022 Proposed Budget Overview

• Workshop Opportunities/Topics

• Council Feedback and Direction

[email protected]

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Staff Goals and ResponsibilitiesThe following items represent the City Staff’s commitment to the Council and the Public during this process:

• Alignment with Council Goals and Direction

• Transparency

• Consensus Building

• Stewardship and Innovation

• Adherence to Sound Fiscal Policies

• Incorporation of Strategic Planning Components

3

Budget ThemesContinuity through Change

• Address challenges

• Provide solutions to identified needs

• Hold nominal tax rate flat

• Maintain structural balance and reserve requirements now and in the future

• No reductions in service delivery

• Find efficiencies and reduce expenses

• Resolve issues during budget workshops

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Fiscal Forecast – General FundForecast Category (figures shown in millions) FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

Beginning Fund Balance $5.56 $5.61 $5.15 $4.69 $4.43 $4.77

Recurring Revenue $20.94 $22.24 $23.21 $24.24 $25.28 $26.39

Recurring Expenditures $21.34 $21.79 $22.52 $23.28 $24.06 $24.87

Structural Balance Factor 101.91% 97.99% 97.04% 96.05% 95.18% 94.24%

Non-recurring Revenues $1.08 $0.01 $0.01 $0.01 $0.01 $0.01

Non-recurring Expenditures and Transfers $0.62 $0.92 $1.15 $1.23 $0.89 $0.66

Ending Fund Balance $5.61 $5.15 $4.69 $4.43 $4.77 $5.64

60-day Fund Balance Requirement $3.56 $3.63 $3.75 $3.88 $4.01 $4.15

Over/(Under) 60-day Fund Balance Requirement $2.06 $1.51 $0.94 $0.55 $0.76 $1.50

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Fiscal Forecast – Enterprise FundForecast Category (figures shown in millions) FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

Beginning Working Capital Balance $2.09 $1.67 $1.57 $1.41 $1.57 $1.36


Recurring Expense $6.92 $7.26 $7.39 $7.57 $7.75 $7.93

Structural Balance Factor 72.17% 76.06% 73.84% 72.09% 70.37% 68.68%

Transfer to General Fund $0.62 $0.62 $0.62 $0.62 $0.62 $0.62

Transfer to Debt Service $2.21 $2.13 $2.12 $2.11 $2.11 $2.11

Transfer to Vehicle and Equipment Replacement Fund $0.36 $0.05 $0.36 $0.36 $0.36 $0.36

Transfer to Capital Improvement Fund $0.50 $0.20 $0.30 $0.30 $1.00 $1.00

Ending Working Capital Balance $1.67 $1.57 $1.41 $1.57 $1.36 $1.51

60-Day Reserve Requirement $1.15 $1.21 $1.23 $1.26 $1.29 $1.32

Over/(Under) 60-Day Reserve $0.51 $0.36 $0.18 $0.31 $0.07 $0.19

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Fiscal Forecast – Debt Service FundForecast Category

(figures shown in millions, except tax rate)FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

Beginning Fund Balance $0.56 $0.64 $0.55 $0.47 $0.39 $0.30


Recurring Expense $9.62 $9.65 $9.64 $9.64 $9.67 $9.66

Net Refunding Activity $0.00 $0.00 $0.00 $0.00 $0.00 $0.00

Ending Fund Balance $0.64 $0.55 $0.47 $0.39 $0.30 $0.22

Debt Tax Rate (per $100 assessed) $0.1558 $0.1508 $0.1453 $0.1397 $0.1348 $0.1296

Increase/(Decrease) in Debt Tax Rate ($0.0010) ($0.0050) ($0.0055) ($0.0056) ($0.0049) ($0.0052)

Debt Outstanding $110.76 $104.77 $98.53 $92.06 $85.30 $78.26

Fiscal ForecastGeneral Fund• Hold the line on the tax rate ($0.4473 in all years)

• 4% annual increase in taxable values

• Annual growth in other revenue sources revenues:• 5% public safety

• 4% permits

• 1% recreation fees and sales taxes

• Annual growth in expenditures:• 3.5% salaries and benefits

• 3% most other categories

• No impact from Decision Items factored in (including EF transfer, fee study, 2nd

medic unit, etc., except for assumed growth in salaries & benefits)

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Fiscal ForecastEnterprise Fund•Assumes rate increases of 5% in FY 2023 – FY 2026

•Annual growth in expenditures:• 3.5% salaries and benefits

• 4% for City of Houston water

• 1% most other categories

•No impact from Decision Items factored in (including transfer to GF, etc., except for assumed growth in salaries & benefits)

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Fiscal ForecastDebt Service Fund•Does not reflect additional debt issuances

•GF Debt paid using the debt tax rate

• EF Debt paid using transfers from EF

• The remaining $6M of bond authority is for streets and drainage uses:• Anticipated annual debt service amount would be approximately $300,000

• This amount is not currently assumed in the Debt Service forecast

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Fiscal ForecastDevelopment of PAYGO CIP/Debt Management Options

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Fiscal Expenditure Other Funding General/Debt Service Annual Property AnnualYear Type Sources Fund Balance Tax Revenue TOTALS Tax Rate

FY 2022

Recurring GF $ 7,708,100 $ - $ 14,083,508 $ 21,791,608 $ 0.2874

Non-Recurring GF $ 10,000 $ 467,419 $ 446,297 $ 923,716 $ 0.0091

Debt Service $ 2,174,946 $ 75,432 $ 7,389,864 $ 9,640,242 $ 0.1508

New PAYGO/CIP $ - $ - $ - $ - $ -

TOTALS $ 9,893,046 $ 542,851 $ 21,919,669 $ 32,355,566 $ 0.4473

FY 2023

Recurring GF $ 7,819,734 $ - $ 14,703,931 $ 22,523,664 $ 0.2885

Non-Recurring GF $ 10,000 $ 452,844 $ 687,372 $ 1,150,216 $ 0.0135

Debt Service $ 2,156,830 $ 78,522 $ 7,405,153 $ 9,640,505 $ 0.1453

New PAYGO/CIP $ - $ - $ - $ - $ 0.0000

TOTALS $ 9,986,564 $ 531,366 $ 22,796,456 $ 33,314,385 $ 0.4473

FY 2024

Recurring GF $ 7,935,342 $ 15,345,130 $ 23,280,473 $ 0.2895

Non-Recurring GF $ 10,000 $ 263,574 $ 958,642 $ 1,232,216 $ 0.0181

Debt Service $ 2,152,256 $ 80,264 $ 7,404,542 $ 9,637,062 $ 0.1397

New PAYGO/CIP $ - $ - $ - $ - $ 0.0000

TOTALS $ 10,097,598 $ 343,839 $ 23,708,314 $ 34,149,751 $ 0.4473

Fiscal ForecastDevelopment of PAYGO CIP/Debt Management Options

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Fiscal Expenditure Other Funding General/Debt Service Annual Property AnnualYear Type Sources Fund Balance Tax Revenue TOTALS Tax Rate

FY 2025

Recurring GF $ 8,055,105 $ - $ 16,007,769 $ 24,062,874 $ 0.2904

Non-Recurring GF $ 10,000 $ - $ 879,216 $ 889,216 $ 0.0159

Debt Service $ 2,150,220 $ 76,516 $ 7,430,619 $ 9,657,355 $ 0.1348

New PAYGO/CIP $ - $ - $ 339,042 $ 339,042 $ 0.0062

TOTALS $ 10,215,325 $ 76,516 $ 24,656,646 $ 34,948,487 $ 0.4473

FY 2026

Recurring $ 8,179,208 $ - $ 16,692,529 $ 24,871,737 $ 0.2912

Non-Recurring $ 10,000 $ - $ 645,000 $ 655,000 $ 0.0113

Debt Service $ 2,150,213 $ 78,805 $ 7,429,737 $ 9,658,755 $ 0.1296

New PAYGO/CIP $ - $ - $ 875,646 $ 875,646 $ 0.0153

TOTALS $ 10,339,421 $ 78,805 $ 25,642,912 $ 36,061,138 $ 0.4473

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Potential Tax Rate Scenarios

Tax Rate Scenario Rate Assessed ValueTax Revenue

(a)

Additional Revenue Over

Proposed Rate

Impact on Average Bellaire

Home (b)

Proposed Tax Rate $0.4473 $4,975,066,158 $21,919,669 $0 $0

No New Revenue Tax Rate $0.4361 $4,975,066,158 $21,370,820 ($548,849) ($82)

Voter-Approval Tax Rate (Includes Increment Rate)

$0.4616 $4,975,066,158 $22,620,432 $700,763 $105

De Minimis Tax Rate(Authorized for Small Cities-$500k increase)

$0.4462 $4,975,066,158 $21,865,764 ($53,905) ($8)

(a) These revenue estimates reflect only a very minor reduction for non-collection. Actual revenues realized using these tax rates might be lower.(b) Impact of statutory rates as compared to the proposed tax rate of $0.4473. Assumes $913,540 valued home with a standard homestead exemption (taxable value after

exemption = $705,832).

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Proposed Tax Rate Breakout

Tax Rate Component/MeasureFY 2021Certified

FY 2022 Certified Estimate

Increase / (Decrease)

O&M Tax Rate $0.2915 $0.2965 1.72%

Debt Service Tax Rate $0.1558 $0.1508 (3.21%)

Total Tax Rate $0.4473 $0.4473 0.00%

Assessed Taxable Value $4,817,349,312 $4,975,066,158 3.27%

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Proposed Tax Rate Breakout

Tax Rate Component/MeasureFY 2021 Certified

FY 2022 Certified Estimate



Assessed Taxable Value $4,817,349,312 $4,975,066,158 $157,716,846 3.27%

O&M Rate $0.2915 $0.2965 $0.0050 1.72%

O&M Revenue $13,897,935 $14,529,805 $631,870 4.55%

Debt Service Rate $0.1558 $0.1508 ($0.0050) (3.21%)

Debt Service Revenue $7,482,914 $7,389,864 ($93,050) (1.24%)

Total Rate $0.4473 $0.4473 $0.0000 0.00%

State Average Total Tax Rate $0.4544

Above or (Below) State Average (1.6%)

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O&M Property Tax Revenue Calculation Based on Certified Estimate

Tax Rate Component/MeasureFY 2021Adopted

FY 2022Certified Estimate


Estimated Revenue from PropertyExisting in Prior Year

$13,524,000 $14,256,805 5.42%

Estimated Revenue from New Property

$239,000 $273,000 14.23%

Total O&M Revenue from Existing and New Property

$13,763,000 $14,529,805 5.57%

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Direct and Overlapping Property Taxes

Average Bellaire HomeAssessed Value: $913,540

Impact of $.01 of Tax Rate AfterHomestead Exemption: $73

$7,998 49%

$3,269 20%

$2,859 17%

$1,218 7%

$779 5%

HOUSTON ISD ($1.1331)

CITY OF BELLAIRE($0.4473)HARRIS COUNTY($0.39116)HARRIS CO HOSP DIST($0.16671)HOU COMMUNITYCOLLEGE ($0.100263)HARRIS CO FLOOD CNTRL($0.03142)PORT OF HOUSTON AUTHY($0.00991)HARRIS CO EDUC DEPT($0.004993)

TAX RATE COMPARISON

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$0.5618 $0.5102 $0.5000

$0.4544 $0.4473

$-

$0.1000

$0.2000

$0.3000

$0.4000

$0.5000

$0.6000

City of Houston Average -Population over

1,000

Average -Population

15,000 - 18,000

Average -Participating

Cities

City of Bellaire

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General Fund OverviewForecast Category (Figures shown in millions)

FY 2020 Actuals

FY 2021 Amended

FY 2021 Projected

FY 2022 Proposed

Beginning Fund Balance $ 4.64 $ 5.24 $ 5.56 $ 5.61

Recurring Revenue $ 20.72 $ 21.26 $ 20.94 $ 22.24

Non-Recurring Revenue $ 1.23 $ 1.05 $ 1.08 $ 0.01

Recurring Expenditures $ 20.43 $ 21.25 $ 21.34 $ 21.79

Transfer - Vehicle/Equipment Replacement $ 0.47 $ 0.42 $ 0.42 $ 0.60

Transfer - CIP Contribution $ - $ - $ - $ 0.15

Non-recurring Expenditures (sales tax refund) $ 0.12 $ 0.23 $ 0.21 $ 0.17

Ending Fund Balance $ 5.56 $ 5.64 $ 5.61 $ 5.15

60-Day Balance Requirement $ 3.41 $ 3.54 $ 3.56 $ 3.63

Over/(Under) 60-Day Requirement $ 2.15 $ 2.10 $ 2.06 $ 1.51

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General Fund – Department SummariesDepartment

FY 2021 Amended

FY 2022 Proposed



CMO (Admin, IT, HR, City Clerk) $ 2,494,071 $ 2,863,956 $ 369,885 15%

Finance and Courts $ 1,818,295 $ 1,816,652 $ (1,643) 0%

Legal $ 100,000 $ 105,000 $ 5,000 5%

Development Services $ 1,089,859 $ 1,153,224 $ 63,365 6%

Fire $ 3,330,581 $ 3,398,215 $ 67,634 2%

Police $ 6,758,050 $ 6,661,023 $ (97,027) (1%)

Parks, Recreation, and Facilities $ 3,840,075 $ 3,884,052 $ 43,977 1%

Library $ 758,877 $ 767,691 $ 8,814 1%

Public Works-Streets $ 1,270,831 $ 1,291,795 $ 20,964 2%

Non-Departmental $ 442,276 $ 773,716 $ 331,440 75%

Total $ 21,902,915 $ 22,715,324 $ 812,409 4%

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General Fund – Budgeted Expenditures Summary

DepartmentSalaries and

BenefitsProfessional

ServicesMaintenance

Contractual Services

Materials and Supplies

Financial Services

Non-Recurring Expenditures

Department Total

$ Increase/ (Decrease)

% Increase/ (Decrease)

CMO $ 724,547 $ 10,000 $ 3,410 $ 45,850 $ 15,150 $ - $ - $ 798,957 $ 35,736 5%

HR $ 223,495 $ 136,000 $ - $ 7,160 $ 24,550 $ - $ - $ 391,205 $ 94,104 32%

City Clerk $ 202,489 $ 94,130 $ - $ 17,560 $ 12,185 $ - $ - $ 326,364 $ 6,721 2%

IT $ 401,669 $ 517,070 $ 53,000 $ 273,191 $ 102,500 $ - $ - $ 1,347,430 $ 233,324 21%

Legal $ - $ 105,000 $ - $ - $ - $ - $ - $ 105,000 $ 5,000 5%

Finance $ 1,000,180 $ 437,235 $ - $ 353,212 $ 13,525 $ 12,500 $ - $ 1,816,652 $ 29,357 2%

Development Svcs $ 952,713 $ 154,100 $ 1,556 $ 14,670 $ 29,185 $ 1,000 $ - $ 1,153,224 $ 63,365 6%

Fire $ 3,047,749 $ 59,675 $ 73,138 $ 75,384 $ 142,269 $ - $ - $ 3,398,215 $ 67,634 2%

Police $ 6,183,081 $ 27,420 $ 75,652 $ 124,702 $ 250,168 $ - $ - $ 6,661,023 $ (72,027) -1%

Parks $ 1,836,593 $ 123,420 $ 1,271,762 $ 197,501 $ 420,776 $ 34,000 $ - $ 3,884,052 $ 43,977 1%

Library $ 678,104 $ 2,500 $ 3,397 $ 18,520 $ 65,170 $ - $ - $ 767,691 $ 8,814 1%

PW Streets $ 845,984 $ 95,330 $ 107,500 $ 24,445 $ 218,536 $ - $ 1,291,795 $ 20,964 2%

Non-departmental $ (150,000) $ - $ - $ - $ - $ - $ 923,716 $ 773,716 $ 275,440 55%

Fund Total $ 15,946,604 $ 1,761,880 $ 1,589,415 $ 1,152,195 $ 1,294,014 $ 47,500 $ 923,716 $ 22,715,324 $ 812,409 4%

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Enterprise Fund Overview

Forecast Category (Figures shown in millions)FY 2020 Actuals

FY 2021 Amended

FY 2021 Projected

FY 2022 Proposed

Beginning Working Capital Balance $ 2.20 $ 2.46 $ 2.09 $ 1.67

Recurring Revenue $ 9.64 $ 9.52 $ 9.58 $ 9.54

Recurring Expenses $ 7.09 $ 6.94 $ 6.92 $ 7.26

Transfer – Debt Service Fund $ 2.15 $ 2.21 $ 2.21 $ 2.13

Transfer - CIP Contribution $ 0.14 $ 0.50 $ 0.50 $ 0.20

Transfer - Vehicle/Equipment Replacement $ 0.36 $ 0.36 $ 0.36 $ 0.05

Ending Working Capital Balance $ 0.01 $ - $ 0.03 $ -

60-Day Balance Requirement $ 2.09 $ 1.96 $ 1.67 $ 1.57

Over/(Under) 60-Day Requirement $ 1.18 $ 1.16 $ 1.15 $ 1.21

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Enterprise Fund – Department Summaries

DepartmentFY 2021 Adopted

FY 2022 Proposed



Utility Billing $ 384,846 $ 372,480 $ (12,366) (3%)

Water Production $ 398,716 $ 361,699 $ (37,017) (9%)

Water Distribution $ 548,023 $ 540,847 $ (7,176) (1%)

Surface Water $ 2,005,960 $ 2,340,300 $ 334,340 17%

Wastewater Collection $ 623,586 $ 623,702 $ 116 <1%

Wastewater Treatment $ 780,782 $ 779,635 $ (1,147) <1%

Solid Waste $ 1,577,460 $ 1,616,745 $ 39,285 2%

Non-Departmental $ 624,000 $ 624,000 $ - 0%

Total Operating Expenses $ 6,943,373 $ 7,259,408 $ 316,035 5%

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Enterprise Fund – Budgeted Expenses Summary

DepartmentSalaries and

BenefitsProfessional

ServicesMaintenance

Contractual Services

Materials and Supplies

Financial Services

Non-Recurring

Expenditures

Department Total

$ Increase/ (Decrease)

% Increase/

(Decrease)

Utility Billing $ 174,785 $ 57,300 $ 2,000 $ 41,970 $ 10,300 $ 86,125 $ - $ 372,480 $ (12,366) -3%

Water Production $ 73,332 $ 25,000 $ 76,297 $ 32,170 $ 154,900 $ - $ - $ 361,699 $ (37,017) -9%

Water Distribution $ 269,377 $ 13,500 $ 175,400 $ 35,670 $ 46,900 $ - $ - $ 540,847 $ (7,176) -1%

Surface Water $ - $ - $ 12,300 $ 2,328,000 $ - $ - $ 2,340,300 $ 334,340 17%

Wastewater Collection $ 480,752 $ 5,000 $ 96,166 $ 24,484 $ 17,300 $ - $ - $ 623,702 $ 116 0%

Wastewater Treatment $ 271,785 $ 100,300 $ 134,160 $ 49,640 $ 223,750 $ - $ - $ 779,635 $ (1,147) 0%

Solid Waste $ 802,331 $ 391,250 $ 173,496 $ 54,362 $ 195,306 $ - $ - $ 1,616,745 $ 39,285 2%

Non-Departmental $ - $ - $ - $ - $ - $ - $ 3,004,246 $ 3,004,246 $ (686,895) -19%

Fund Total $ 2,072,362 $ 592,350 $ 657,519 $ 250,596 $ 2,976,456 $ 86,125 $ 3,004,246 $ 9,639,654 $ (370,860) -4%

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Debt Service Fund Overview(in millions, except tax rate)

FY 2020 Actuals

FY 2021 Adopted

FY 2021 Projected

FY 2022 Proposed

Beginning Fund Balance $ 0.52 $ 0.56 $ 0.56 $ 0.76 Property Tax Revenue $ 7.43 $ 7.43 $ 7.48 $ 7.43 Transfer from Utility Fund $ 2.15 $ 2.21 $ 2.21 $ 2.13 Refunding Bonds Issued $ 17.80 $ - $ 6.40 $ -Premium on Refunding Bonds $ 1.87 $ - $ 0.22 $ -Other Revenue $ 0.01 $ 0.01 $ 0.00 $ 0.00 Principal Payment Expenditures $ 5.58 $ 5.67 $ 5.68 $ 6.00 Interest Payment Expenditures $ 4.00 $ 3.97 $ 3.92 $ 3.63 Bond Refunding Expense $ 19.31 $ - $ 6.50 $ -Other Expenditures $ 0.34 $ 0.01 $ 0.01 $ 0.01 Ending Fund Balance $ 0.56 $ 0.56 $ 0.76 $ 0.68 Ending General Obligation Bond Debt $ 116.44 $ 110.77 $ 110.82 $ 110.82 Debt Tax Rate (per $100) $ 0.1568 $ 0.1558 $ 0.1558 $ 0.1508

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Debt Service Fund Fiscal Forecast Debt Issuances Assumed

Description Amount

FY 2021 General Obligation Bonds Outstanding $110,815,000

General Obligation Bond Series 2022 $6,000,000

Projected Principal Payments FY 2022-FY 2026 ($33,110,000)

Net Change in General Obligation Bond Debt Outstanding ($27,110,000)

Current General Obligation Bond Debt Outstanding 9/30/2021 $110,815,000

Projected General Obligation Bond Debt Outstanding 9/30/2025 $83,705,000

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Special Revenue Funds Overview(in thousands)

FY 2020 Actuals

FY 2021 Adopted

FY 2021Projected

FY 2022 Proposed

Beginning Fund Balance $ 446 $ 436 $ 452 $ 630 General Source Revenues $ 83 $ 85 $ 109 $ 110

Police-Related Revenues $ 44 $ 82 $ 112 $ 105

Fire-Related Revenues $ 1 $ 21 $ 1 $ 21

Library-Related Revenues $ 16 $ 16 $ 11 $ 16 Parks, Recreation, and Facilities-Revenues $ 110 $ 85 $ 85 $ 85

General Source Expenditures $ 56 $ 335 $ 42 $ 447

Police-Related Expenditures $ 69 $ 220 $ 91 $ 258

Fire-Related Expenditures $ - $ 22 $ - $ 25 Library-Related Expenditures $ 12 $ 43 $ 5 $ 48

Parks, Recreation, and Facilities-Related Exp. $ 110 $ 103 $ 1 $ 187

Ending Fund Balance $ 452 $ 2 $ 630 $ 1

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Special Revenue Fund - Revenues

Source FY 2022 Proposed

Public, Educational, and Gov’t (PEG) Channel Fees $51,000

Court Fees $28,775

Donations / (Contributions) $145,900

Grants $75,000

LEOSE Funds $4,200

Seized Property $6,000

Pass-Through Funds $25,000

Special Revenue Fund - Expenditures

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Source FY 2022 Proposed

Finance Department $147,700

Fire Department $227,300

Police Department $233,200

PARD Department $53,850

Library Department $3,900

Non-Departmental $298,800

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Capital Improvement Program FY 2022-2026 (Project Summary)

PROJECT SUMMARY

Category FY 22 - 26 Totals FY 2022 Totals

Drainage $35,000,000 $16,000,000

Streets & Traffic $12,994,323 $8,343,550

Utilities $9,010,000 $5,070,000

Parks, Recreation & Facilities

$1,895,000 $400,000

Vehicles & Equipment

$3,348,700 $694,400

Technology $726,000 $334,000

TOTAL $62,974,023 $30,841,950

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Capital Improvement Program FY 2022-2026 (Funding Summary)

FUNDING SUMMARY

Category FY 22 - 26 Totals FY 2022 Totals

Capital Bonds $19,477,814 $12,637,814

Enterprise CIP Funds $2,800,000 $200,000

General Fund CIP Funds $1,645,000 $150,000

Grant Funds $10,495,736 $7,995,736

Interlocal Cooperation $18,500,000 $7,500,000

METRO $5,730,773 $1,080,000

Reallocated GF CIP Funds or Donations

$250,000 $250,000

VET-Enterprise Fund $270,100 $46,300

VET-General Fund $3,804,600 $982,100

TOTAL $62,974,023 $30,841,950

CIP – Fleet Replacement Schedule FY 2022 Estimate

Department Division Description CostGeneral Fund

Police Patrol Replacement for Ford PI-Sedan $ 65,000

Police Patrol Replacement for Ford PI-SUV $ 65,000

Police Patrol Replacement for Ford PI-SUV $ 65,000

Police Command Replacement for Chevy Tahoe $ 60,000

Police Command Replacement for Chevy Tahoe $ 47,000

Fire Command/Chief Replacement for Ford Expedition $ 49,000

Public Works Streets & Drainage Replacement for Ford F150 $ 29,500

General Fund Total $ 380,500

Enterprise Fund

Public Works Water Distribution Replacement for Ford F150 Super Cab $ 29,500

Enterprise Fund Total $ 29,500

Total All Funds $ 410,000

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Fleet Management

Program

Decision –Making Criteria

33

Personnel and Staffing OverviewFTE Summary*

FY 2020 Adopted

FY 2021Adopted

FY 2021 Amended

FY 2022 Proposed


CMO (Admin, IT, HR, City Clerk) 10.0 10.0 10.0 11.0 1.0

Finance 10.0 9.0 9.0 9.0 -

Development Services 8.0 7.0 10.0 10.0 -

Fire 25.0 25.0 25.0 25.0 -

Police** 60.5 60.5 60.5 59.5 (1.0)

Library 7.5 7.5 7.5 7.5 -

Parks, Recreation, and Facilities 24.5 24.5 24.5 24.5 -

Public Works – General Fund 10.0 9.0 9.0 9.0 -

Public Works – Enterprise Fund 30.0 30.0 30.0 30.0 -

TOTALS 185.5 182.5 185.5 185.5 -

* Full-Time Equivalents show budgeted positions only. Seasonal and part-time help may utilize other budgeted funds.** For each period shown, 1.5 of the Police FTE positions are budgeted in the Special Revenue Fund. 34

FY 2021 Mgmt. Project – Review Salary Structure & Pay Rates• Staff requested and received survey results which included data from 23 entities

Comparisons Made• 50th Percentile for Non-Public Safety/75th Percentile for Public Safety• Review of seasonal pay rates

Goals• Identify options to provide more benefits to lower pay grades• Identify new “starting point” for all plans and minimum FY 2022 pay raise• Create a system that is sustainable in future budget years

Recommendations• Raise minimum for all plans and change to 2.5% between steps• Expand Public Safety pay plans to avoid compression and maxing out• Make flat adjustments to seasonal pay plan across the board• Allow for one-time adjustments to be made if needed (only 6 city-wide)

FY 2022 Budget Considerations:Recurring Items Overview – Pay Plan Adjustments

35


FTE Breakout NotesNon-Public Safety 111.5 60% Includes PS chief positions & non-sworn personnelFire 25.0 13% Public Safety changes exceed 75th percentilePolice 39.0 21% Police category covers sworn officers only

Seasonal 10.0 6%Seasonal adjustments account for all seasonal help which may utilize other budgeted funds

TOTAL 185.5

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Fund Listing Oct. Start Jan. Start (Rec.) Breakout

General Fund $ 503,759 $ 377,819 81%

Enterprise Fund $ 108,886 $ 81,665 18%

Special Revenue Fund $ 5,899 $ 4,424 1%

TOTALS $ 618,544 $ 463,908


Non-Public Safety (All Funds) Allocation by Group

Grade Groups Grade FTE EstimatesPlan Adjustments

(Oct. Start)Plan Adjustments (Jan. Start-Rec.)

Group 1 (Grade 100-108) 65.5 59% $ 228,078 58% $ 171,058 58%

Group 2 (Grade 109-113) 34 30% $ 119,692 31% $ 89,769 31%

Group 3 (Grade 114-117) 12 11% $ 42,704 11% $ 32,028 11%TOTALS 185.5 (includes 2 CC reports) $ 390,474 $ 292,855

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All Employees (All Funds) Allocation by Personnel Group

Personnel Groups Plan Adjustments (Oct. Start) Plan Adjustments (Jan. Start-Rec.)

Non-Public Safety (All Funds) $ 390,474 63% $ 292,855 63%

Fire $ 70,300 11% $ 52,725 11%

Police $ 110,450 18% $ 82,838 18%

Seasonal $ 47,320 8% $ 35,490 8%

TOTALS $ 618,544 $ 463,908

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Examples by Position

Pay Grade Title Current Starting Proposed Starting % Increase101 Laborer (Solid Waste) $ 26,020 $ 30,316 17%

102 Building Maintenance Tech $ 29,701 $ 32,741 10%

F1 Firefighter EMT $ 53,589 $ 56,498 5%

P2 Police Officer $ 64,273 $ 67,600 5%

S1 Camp Counselor $9.50/hr $10.00/hr 5%

S2 Recreation Aide $10.00/hr $11.00/hr 10%

FY 2022 Budget Considerations:Recurring Items – General Fund Description Category Impact Type Impact AmountEst. Health Insurance Cost Increase (14%) Increase in Operational Costs Annual Decision 231,200Pay Plan Restructuring (Gen. Fund Impact)

FY 2021 Mgmt. Project/Inc. to Base

FY 2022 Decision 380,000

Fire - Addition of 2nd Medic Unit (Personnel)



Police - Incentive Pay for Dispatch Enhancement Request FY 2022 Decision 18,500Police - Flock Camera System Phase 1 Continuation

FY 2021 Mgmt Project/ Enhancement


Police - Vigilant Solutions ALPR (Annual Subscription)



Total Potential Recurring Expenditures 932,800

Description Category Impact Type Impact AmountIncrease of Ent. Fund Overhead Transfer (Per Cost Allocation Plan)

FY 2021 Mgmt. Project/ Increase to Base


Potential Impact from Fee Study Changes (50% of Policy Goal)

FY 2021 Mgmt. Project/ Increase to Base


Total Potential Recurring Funding Sources 939,00039

FY 2022 Budget Considerations:Non-Recurring Items – General Fund

Description Category Impact Type Impact AmountGeneral Fund CIP Transfer Out Annual Decision 150,000

VET Fund - Gen. Fund Fleet Transfer Out Annual Decision 350,000

VET Fund - Gen. Fund Tech Transfer Out Annual Decision 250,000

Add 2nd Medic Unit (Equipment & Training)


One-Time Expenditure

100,000

Public Works - Local/ResidentialStreets Speed Study



50,000

HGAC Grant Match-Livable Centers Study & Comprehensive Plan Update



30,000

Total Proposed Non-Recurring Expenditures 930,000

Description Category Impact Type Impact Amount

FY 2022 Excess Recurring Revenue Excess Recurring Revenue Annual Decision 450,000

One-Time Use of Excess Fund Balance Fund Balance Annual Decision 480,000

Total Potential Non-Recurring Funding Sources 930,00040

FY 2022 Budget Considerations:Recurring Items – Enterprise Fund

Description Category Impact Type Impact AmountAdditional Overhead Transfer Expense (per Cost Allocation Plan)



Est. Health Insurance Cost Increase (14%) Increase in Operational Costs Annual Decision 47,987Pay Plan Restructuring (Enterprise Fund Impact)



Siemens Performance Assurance Services Program

Increase in Operational Costs Annual Decision 48,930

Enviromental Engineer Consultant Services Contract

Enhancement Request (ESB) FY 2022 Decision 50,000

Total Proposed Recurring Expenditures 627,582

Description Category Impact Type Impact AmountWater rate increase (9%) (Per CAP/UF studies, also covers COH rate increase)



Wastewater rate increase (7%)(Per CAP/UF studies)



Solid waste rate increase (7%)(Per CAP/UF studies)



Total Potential Recurring Funding Sources 631,000 41

FY 2022 Budget Considerations:Non-Recurring Items – Enterprise Fund


Capital Improvement Program Transfer OutAnnual

Consideration200,000

Vehicle and Equipment Replacement Fund (Fleet)

Transfer OutAnnual

Consideration46,300

Debt Service Fund Contribution Transfer OutAnnual

Authorization2,133,946

Utility Rate StudyFY 2022 Mgmt Project/

EnhancementFY 2022 Decision 35,000

Total Proposed Non-Recurring Expenditures 2,415,246


One-Time Use of Excess Fund Balance (may also include FY 2022 additional revenue)

One-Time Use of Fund Balance (may include FY 2022 additional revenue)

Annual Decision 131,147

FY 2022 Excess Recurring Revenue Excess Recurring Revenue Annual Decision 2,284,099

Total Non-Recurring Funding Sources 2,415,246

42

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Potential Management ProjectsDepartment Project Name

Development Services

Bellaire Livable Center Study with Modified Comprehensive Plan Review

Update Sign Ordinance

Customer Services/End User Relationship - Work with CMO

Develop an Intern Program

Explore Master Drainage Concept Plan partnership opportunities

Development Services Guide

Human Resources

Pay Plan review• Review of FY21 Classification and Compensation Project results

and address pay plan areas relating to market-driven pay issues, employee development, retention, job families, incentive pay program, and other salary programs for the increased improvement of employment possibilities with the City of Bellaire.

Fire DepartmentImplementation of fee schedule structure changes per Fee Study findings

Review staffing efficiencies

44


Parks, Recreation and Facilities

Implementation of Fleet Maintenance Program

Implementation of Energy Demand Response Program

City Manager’s Office / Administration

Website Redesign with Content and Navigation Review

Employee Commitment Statement Refresh

New Business Welcome E-Packet

American Rescue Plan

Review of Open Records Request Procedures (City Clerk/City Attorney)

Police DepartmentFY2022 - FY 2024 Service Plan

Computer Aided Dispatch/Report Management System Upgrade

Information Technology

Hardware Replacement Schedule

License Standardization Plan

FY2022 – FY2024 Service Plan

Technology Plan included in CIP

45


Finance

Financial System Conversion from Incode 9 to modern software package

Review Winter Sewer Average

Implement fee changes from Cost of Services (User Fee) Study, if needed

Utility Rate Study

Review/Update Comprehensive Financial Management Policy Statement

Public Works

Assessment of 25MPH speed limit on certain residential streets

GIS program enhancement – ROW limits reestablishment

Street Sweeper route program w/ public notification strategy

Solid Waste App (ESB Request)

Library

2022-2027 Long-Range Plan• Requirement for accreditation by Texas State Library and Archives

Commission• Review of services and programs• Receive input from community

FY 2022 Process – Next StepsFuture Workshops

• Public Hearing: August 9th

• Budget Workshops: August 10th and August 16th

• Consideration of additional dates

• Desired topics/presentations

Receive Council Feedback/Direction

One-on-one meetings

Council Direction46

Documents

FY 2022 Budget Process Overview