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2016_09.08 CC Packet - Special )c KENNEDALE You re Here,Your Home www_c ityofl(ennedalacam KENNEDALE CITY COUNCIL AGENDA SPECIAL MEETING September 8, 2016 CITY HALL COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE REGULAR SESSION at 7:00 PM I. CALL TO ORDER II. REGULAR SESSION III. ROLL CALL IV. DECISION ITEMS A. Public hearing to receive input on the Fiscal Year 2016-2017 Proposed Budget. 1. Staff Presentation 2. Public Hearing 3. Staff Response and Summary V. EXECUTIVE SESSION A. The City Council may meet in closed session at any time during the work session or the regular session, pursuant to Section 551.071 of the Texas Government Code for consultation with the City Attorney pertaining to any matter in which the duty of the City Attorney under the Texas Disciplinary Rules of Professional Conduct may conflict with the Open Meetings Act, including discussion on any item posted on the agenda. The City Council will meet in closed session pursuant to Section 551.072 of the Texas Government Code to deliberate the purchase, exchange, lease, or value of real property for the following: 1. Purchase of right-of-way for the extension of Link Street at 5750 Kennedale Parkway VI. RECONVENE INTO OPEN SESSION, AND TAKE ACTION NECESSARY PURSUANT TO EXECUTIVE SESSION, IF NEEDED VII. ADJOURNMENT In compliance with the Americans with Disabilities Act, the City of Kennedale will provide for reasonable accommodations for persons attending City Council meetings. This building is wheelchair accessible, and parking spaces for disabled citizens are available. Requests for sign interpreter services must be made forty-eight (48) hours prior to the meetings. Please contact the City Secretary at 817.985.2104 or(TDD) 1.800.735.2989 405 Municipal Drive, Kennedale, TX 76060 1 Telephone: 817-985-2100 1 Fax: 817-478-7169 CERTIFICATION I certify that a copy of the September 8, 2016, agenda was posted on the City Hall bulletin board next to the main entrance of the City Hall building, 405 Municipal Drive, of the City of Kennedale, Texas, in a place convenient and readily accessible to the general public at all times and said agenda was posted at least 72 hours preceding the schedule time of said meeting, in accordance with Chapter 551 of the Texas Government Code. Leslie Galloway, City ecretary )c KENNEDALE You're Here,Your Home www.cityofkennedale.com Staff Report to the Honorable Mayor and City Council Date: September 8, 2016 Agenda Item No: DECISION ITEMS-A. I. Subject: Public hearing to receive input on the Fiscal Year 2016-2017 Proposed Budget. 1. Staff Presentation 2. Public Hearing 3. Staff Response and Summary II. Originated by: Finance Director, Director of Finance & IT III. Summary: According to Chapter 102, Section 102.006 of the Local Government Code, "the governing body of a municipality shall hold a public hearing on the proposed budget. Any person may attend and may participate in the hearing." The governing body shall also provide for public notice of the date, time and location of the hearing. This was accomplished in the Fort Worth Star Telegram on August 24, 2016. City Staff will make a summary presentation prior to council receiving public comments, if any, on the FY2016-2017 proposed budget. Lastly, Section 102.007 of the Local Government Code on Municipal Budget states that "at the conclusion of the public hearing, the body of the municipality shall take action on the proposed budget." Because it is Council's intent to adopt the budget on September 19, 2016 and not at this specific meeting, Council must still take some kind of action to satisfy the aforementioned requirement. Staff recommends that council take formal action to table adoption of the budget at a later time. IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: Approve Postpone/Table None VII.Alternative Actions: This is a public hearing only. The 2016-2017 budget and tax rate will be adopted, and the budget ratified during a special session on September 19, 2016. IN ORDER TO SATISFY SECTION 102.007 OF THE LOCAL GOVERNMENT CODE, COUNCIL MUST MAKE THE FOLLOWING MOTION: I MOTION TO APPROVE THE TABLING/MOVING OF THE ADOPTION OF THE FY2016-2017 BUDGET TO SEPTEMBER 19, 2016 SINCE WE WILL NOT BE TAKING SPECIFIC ACTION AT THIS MEETING. 405 Municipal Drive, Kennedale, TX 76060 1 Telephone: 817-985-2100 1 Fax: 817-478-7169 VIII. Attachments: 1. Pro osed FY2016-17 Budget jProposed City of Kennedale 2016-17 budget PACKET2u df 9/2/2016 Proposed Budget NN, DA��. Fiscal Year 16- 17 OCTOBER 1. 2016 — SEPTEMBER 30, 2017 , ADAPTED FROM STAFF'S I'RESE;:'I'.�TION TO COUNCIL AT THE BC DG LT WORKSH(tl' � FRIDAS'. AUGUST 12, 2016_ IN CITY HALL. View the Proposed Budget at cityofkennedale.corn/budget MEETING DATES 7:00 p.m.Thursday,September 88—Public Hearing:Proposed FY 16-17 Budget Residents pray address Council regarding the Proposed Btidger at this Peering,See rbr final slide for it fornrarion. 6:30 p.m.Monday,September 12—Citizen input Meeting with Waterf Wastewater Rate Review Committee Residents rvill hear the comndtirei proposed recommendritiois to Councd and ecru sign rip to provide feedback or ask questions.. 5:30 p.m.Monday,September 19—City Council Work Session Water/Wastewater Rate Review Committee Report 11°ork&&ions are lrtfornmtional only.No action will ke takers ky Council and them will ke no opponunity for public carninent fentil the Regain Meeting,wbirh breludes a Public(fearing on this topic. 7:00 p.m.Monday,September 19—City Council Regular Meeting Consider Adoption of Budget and Tact Rate(No Public Hearing on this Topic Tonight,See Sept 8`F'); Public Hearing on Newly Proposed Water[Wastewater Rates;Consider Adoption of Proposed Rates Rr.ddcnh nary address C:ouu d regarditeg rile wate'rlwastewater hire Awlew Co+n:nitree:r newly proposed;utter rind was(eiviner rare structure at this meeting See rhefitnaf slide for lrifonnadon. BUDGET ; a RATE Budgeted Projects to Achieve `Ends' Community Direction View F-ids Statement and Governance Docurnenrs •Establish Sustainable Community Goals •5trategic Plan Update to 2025(Currently 2015) •Redevelop Oak Crest aad Keruiedale Pkwy. •Healthy Youth&Families Initiative •Restore Village Creek •Community Events(BrickworksFestimiSuspended) •Subdivision in Southwest Kennedale •Housing Derelopments:TLe Glen of Village Creek,Hilltop, •Excellent Road Network The Vineyards,Falcon Crest,Senior How.ng,and TIRZ Projects •Intercunneered Linear Parks •Kennedale Parkway Access Study •Dev€lop Excellent,Innovative Organization •Village Creek Red evelopmen r Projects •Park Projects and Expansions Considerations•Personneli Staffing and Insurance Changes;Smcmion Planning •Economic Development Corporation(EDC):Demolish Chicken •Property Tax:TAD Appraisal Values; Express;TownCenrer Buildings 6 and 7;Oak Crest Developnienr; Tax Bates and Exemptions;Growth Offset Kennedale Parkway 13evelopmenti Bloxotn Business Park Development by Decrease in Mineral Values •Asset Management Plan;Vehicles and Equipment,Facility Repairs, •Utility Rates:Arlington Sewer Fee: Road Projects,Pavemenr Analysis,Wastewater Projects,and Technology 150%Increase since`12;Negative Cash Balance;Master Plan and Efficiency Projects Infrastructure Replacement Cost Per Household:$48,451 •Waterfwmtewater Fund:working Capital; Long-=erm Supply and Treatment;System Improvements x Land Use Values:Improvement Needed to Become More Attractive to Businesses •Strea Fund:Overall Decline of Franchise I� o H 0. — Fees;Reduction of Water/Wastewater Fund J 1 I 4 Franchise Fee fmm I I%co 9% •Stomtwater Funich Potential Erosion Damage to Public and Private Properties 1 9/2/2016 FY16- 17 BUDGET & TAX RATE FACT SHEET Current Tax RatetFY15.16) 76.75 Z ®� Proposed Tax Rate(FY 16-17) 76.75 GENERAL. $6.221M $6.367M 16.5%- Effective7axRate 77,47 Rollback Tax Rata 82.71 STREETS $969 K $894 K 8.7%- NewConstruc[ionAdded $26Milliun WATER/WASTEWATER $4.992 AA $4.819141 8.195•* Mineral Value Decllne 1$24 Million) •Frojerred End-olL Ye rCash Falanc<~ Percent WArrnua'Budget ALLREVENUEi6YTYPE 36%0 o'% ALLEXPEN1lITURESBYTYPE ■AY VALGROt TAXES 3.9X 75% ■SALES I11HARTS ow ■PFASONHEL ■FIANCH M qF3 ■SUPPLIES ■OTHER ASEKY ■MAINr •LICEMES1 PERMITS •FINE$1 FEES A ■SUNDRY •CHARGErdf SERVICES III DEBT r IAVEAN(Af EARNINGS' ■WA IKUNE ■TR WIS ■R�IER•G6VT ■SNRPLtl1 iALESI FdlrAti L1% ■(APITAL ■TRAMFIRS GFANTS 'Amountis sv sm�Y7($3,38GJ.rt dfsP�ysasd.0431.1% 13% Tax Fads •1C Increase on Property Tax Rate=$58,299 in Additional Revenue r r I r •Property Taxes:57.7%of General Fund Revenue 1, •Sales Takes:18.7%of General Fund Revenue IP,niecrea 2%DhIim itr FYI S-M •Ultimate Goal:Property Tax Revenue=Sales Tax Revenue F r r r F r GOVERNANCE ------------------------------------------------------------------------------------------------------ 0-------------------------------------------------------------------------------------------------------- The budget is a`means'document to achieve `ends' articulated by City Council in the adopted Ends Statement (next page). k Considerations � �' _ t y What benefit?For whom?At what cost? f Watch for a flyer in your September utility bill (wbieh wall arrive around the,f ut week of October) for the Resident Survey.Respowcs will guide the Strategic Flan update, ]fyoudlike to receive an email reminder when the survey is available in Q/_ October,please sign up for a—the monthly newsletter at cityolkennedale.comisubscribe, I AV 2 9/2/2016 STAFF INTERPRETATION ------------------------------------------------------------------------------------------------------ 0-------------------------------------------------------------------------------------------------------- Ends (Visi-un) Statement AREAS OF FOCUS DURING Kennedale is a family-oriented community THIS AND CQMING YEARS providing a refuge from the hectic pace cf the Create a Community Dallas/Fort Worth Metroplex. Open spaces, Based on Sustainable Goals green belts,and trails enhance our serenity, Redevelop Dale Crest quality of life,and community.With easy Restore Village Creek access from major roadways,Kennedale is Establish Residential Subdivision economically prosperous, business friendly, in Southwest Kennedale and conveniently located,providing Redevelop Kennedale Parkway opportunities to shop,work and play. • Develop an Excellent View Go�,ernance Documcnis Road Network c * Create an Interconnected ' r Linear park System • Build an Organization of Excellence and Innovation ------------------------ O----------------------------------------------------------------------------------------------------------------------------------------------------------- SI, role I �P.� A nsra cin rrau �aa.��A rasa isilr ra x��� ! ! 1 - t5�91 +sns nmearwnk 1 1 1 4 .1 >aWJ I 1 11JN isir9 s These PER CAPITA INCONM numbers have historically hindered economic development efforts.However,the changes on Keamedale Parkway show that the tides are turning.Mc Donald's opens across Paom Qu&Trip in September,and TcwnCenter buildings G and 7 will open by early 2017,housing the new Chicken Express,Dickey's Barbecue,a cozy bar and grill,;anti an event rental space. 3 9/2/2016 ADDRESSED ON MULTIPLE FRONTS ---------------------------------------------------------------------------------------------------------0-------------------------------------------------------------------------------------------------------- TAX INCREMENT FINANCING(TIF) ■ Housing Development:Tax Increment is wool to publicly finance infrastructure Reinvestment Zone; and Park Expansion improvements 1n o designated area—2 TAX INCRENIFNT REINVESTMENT ZONE • Village Creek Flood Control Study (nR7).Tlie cost is repaid by the future tax revenues of cacli(axing unit that levies taxes (by the Army Corp of Engineer against die property.Find out jitore... Water Quality Studies (by UTA and Trinity River Authority (LRA)); iSWM (integrated Stormwater Management); FENU Community Rating System (CRS); Partnership with Dr. Alexander Sun through the American Geophysical Union (AGU)Thriving Earth Exchange Program (at no cast to city):;and Kennedalc Parkway Redevelopment and focused Code Enforcement efforts ADDRESSED ON MULTIPLE FRONTS ---------------------------------------------------------------------------------------------------------0-------------------------------------------------------------------------------------------------------- • TownCenter: Increased density with A healthy municipal tax revenue m'kx is split evenly between property and sales tax.Kennedale,relies too Hilltop and TIRZ developments helps kcavily on property tax versus sales tax. attract retail, lessening the city's For FYI 6-17,property tax is projected co be about 76%of total tax revenue(which is about 57.7%of all dependence on property tax General Fund revenue),with sales tax accouming for • Oak Crest:Tarrant County laterlocal just 24%ofEax revenue.To balance this split,the community needs to attract new businesses.The more Road Pro'iects:and Development by the rooftops'drat are added,the easier that becomes. Kcnnedale Economic Development j It Corporation (EDC) • Streets.-County Interlocal Projects ,' • Community and Organizational Development:Attracting and Retaining Quality Staff ■ Parkland Partnership:Kennedale Arts & Culture Foundation 4 9/2/2016 POLICY IMPLICATIONS & FACTORS ■ Property Takes and Exemptions ■ Utility Bates:Our wastewater flaws through the City of Arlington's system, to the Trinity River ,- ,7i-Traditional Authority (TRA)'Ireatment Facility.'There has been a 150% increase in this charge since 2012 Reactive ■ Land Use Values: Must improve to heroine Approach more attractive to businesses. VERSUS Arlington sewer Costs ■ Street Fund Concern: 1,6mm Proactively Decline of 9mm Creating franchise fees Future ■ Stormwater and 6M600' sMOOD what Erosion: 11c.-te n tial 4W�6 s mo000 to damage both Mona public and private 1oQ04a properties 2612 2m3 2614 2015 2016 M7 PROPERTY VALUES 6140.004.104 5500,000,040 SW0.0�4,009 #5UD,019,400 SZ4PAM,409 -�. 2140(2007') 1047(2005) 2444(2001) 2005(20101 2010{2)11] 2411[20111 7012{20111 2013[2014] 2314(2015) 2015[2016] 2010(2017) 5 9/2/2016 PROPERTY TAXES & EXEMPTIONS • FY 2015-16 Tax Rate: ■ Kennedale has 2,935 residential 70.75 properties,with a value of $427 Million • Effective Rate: 77.47 ■ Of those,494 ac(ounts take advantage • Over the past year, we've added of the Over 65 Exemption($50K) $26 Million in new property W HAT'S A N E F F ECTIVE TAX RATE? values, but with the drastic drop in A calculation of what the=rare should be for the coming year to mineral valuations (-.$24 Million), It's usually not higher than the current the effective tax rate is actually tax race,but the drop almost completely cancelled out property higher than our tax rate. That added this y.,. means in order to equal last year's DO # revenue, we'd have to raise taxes by Property K tax revenue goes alrnost one cent. However, the tax Fund,which is separate from and Street Funds.Kcrunedale has three major fimi rate will not increase for the which increases transparency and accountability. corning year_ Franchise fees go to the Street Fund, r water biHing revenue goes to the WaterfWastewater Fund. MUNICIPAL FINANCE OVERVIEW r R F U N i S The main revenue sources For a municipality are sales and property Sales&Property Tax General Fund tax,franchise fees,and utility bills. Franchise Fees Street Fund(Specio)Revenue) Individual funds are created for various reasons(includingstwutwy Monthly Utilizy Bills Water/Wastewater Fund(Enterprise) orgmnrrequirements or far accounting purpotea),and each is viewed in a Fund Nam layadalikcash;narincludrngorherassw)measuresthe financial health ofa vacuum,without consideration of the fund.There is an acceptable range because,of course,youcan have too little,butyou can also entity's other funds.Activity not have too much.The(ity ofKenmdale's currentadepted fund balance policy is 25%(of the assigned to a specific fund is annual budget),but council is considering amending it to 1796,Most governments are accounted for in the General Fund, within the 15-25%range, where money can be used ror general Government budgets aren'testlmatesof what might bespent.Rather,they set the maximum purposes(including personnel, amoiinl that can he spent during the current fiscal year.Expenditures(also called maintenance,andsupplier).Enterprise "appropriations")cannot exceed theadapted amountunless the budgetis formallyand Funds,on the other hand,are used publicly amended.Kennedale`sfiscal year runsfrom 0doberV through 5eptembei3flt^. for complex services like utilitiesro separate the associated cos rs and Finally,staff must always consider long-term projections and only add servicesthat are separate,rather than commingling ngling sustainable,movethe community towards its adopted vision,and supporttheservice levels them with everyday activity and expected by residents and other Stakeh old efs, spending,.Through this accounting THE CITY OF KENNEDALE HA5 27 FUNDS method,financial health of aspecifrc service is more easily evaluated. 6 9/2/2016 WASTEWATER CHARGES Charges from Arlington to flow Wastewater through their System {to Treatment Facility} WHYHASTHIS 1,044,444 _:: - E SO I ' 940,44v Staff questions the x40,400 accuracy of a meter readings being F ;99,400 f to calculate our 600,00 bill,and has rented a 500,404 flow meter(tbat also mrasures vr&city). 440,404 Once we have enough data to compare,well 390.844 -- 204,404 present - findings '44,404 to Arlington. 2012 2013 2014 2015 2016 2011 r------- ------------------------- PRIORRQED WASTEWATER UPGRADES MAP ROTATE990°(tOCKWISE TO MAXIMIZE SIZE the Capital Irnproveroeots Plan(p.45)tram the Water&Wastewater Master PlandeRnes these'r — +f�J � ai i updates as necessary to support I(ennedaJ6 A +� 1 ;buildout population(est.etobout Pb offl. r.�_____ _____________________ __ . ♦ N Y I S trt a II II II >�� 3f�si ` f6 � �F .n� d ro LA 7 9/2/2016 WATER/WASTEWATER STILL IN TFiE RED Despite the new rates, the WaterlWastewater Fund cash balance was still ncgaCiue at the beginning of August 2©lei. FUND CASH BALANCE 21000M 11,000AN SHION 2W 2m 2049 "10 2011 2D12 2013 2014 2015 2017 (500AN) LAND USE VALUES (PER ACRE) ---------------------------------------------------------------------------------------------------------0-------------------------------------------------------------------------------------------------------- Wells Fargo $3,C72,200 QuikTrip $I,J26,935 Watson Glass $928,156 Burger Box $408,855 Speed Fab $129,000 Salvage Yards Apple $63,155 AB $41,157 $3 ,233 Apache 0 Mazda—Nissan $22,523 Speedway $10,928 These numbers account for noC only the inherent value of land and improvements,. but also contributions 7*31 the CitUj of I lCennedale's revenue stream through taxes. 8 9/2/2016 STREETS : FRANCHISE FEES ------------------------------------------------------------------------------------------------------ 0------------------------------------------------------------------------------------------------------- ■ In FY15-16, Kennedale will cQllect abQut $993,64Q in WHAT ARE franchise fees, and $926,966 in FYI 6-17 (a loss of FRANCHISE FEES? $66,674 in this lime item). Most of this is due to the A municipal decrease in landline phone service and the movement franchise fee is the"rent" that a away from cable TV (to streaming and satellite services). utility company • The Water/Wastewater Fund has been paying an I I% _ the street franchise fee to the Street Fund, but it will be 9% for ' FYI 6-17 to reduce costs. However, this puts the Street (ROW) for its scrvicc lines. Fund at a disadvantage,which must be monitored. • Asset Management Plan EMERGING STORMWATER AND EROSION ISSUES AND COSTS - - - - --------------------------------0 These projects are not curmndy budgeted, but are included because they arefuture considerations. • Valley Lane: $156,000 • Pennsylvania Avenue: $360,00{} • Briar Court'Wastewater Line: $350,000 • Village Creek • Winding Creek (Bowman 0:HALFF' Study Area C—nd Springs to Sublett): $3.5 M .`u °°`E"°`°"° •i.+GYf�Fioadgen • Community Drainage Issues Z..,M F-I Fboaal- Fioo— 9 g/2/2Ol6 STRATEGIC DISCUSSION : ACHIEVING THE 'ENDS ' ----------------0-------------------------------------------------------------------------------------------------------- RESIDENTS ARE ENGAGED IN COMMUNITY,CIVIC AC11VI-nFSAN10 EVENTS • Update of Strategic Plan guided by • Neighborhood and HOA Meetings • Healthy Youth & Families Initiative • Community Events • Christmas Tree Lighting, Kidflish, Bark in the Park, Library Events, Public aery pen ousean YAC Movies in the Park, Food Truck Nights, and Trunk-or-Treat • Brickworks Festival suspended until Hotel Tax becomes available • Housing Development The Glen of Village Creek,Hillrop, The Vineyards,Falcon Crest, Stnior Housing, and the TIRZ STRATEGIC DISCUSSION : ACHIEVING THE 'ENDS ' -----------------------------0 • North Central Texas Council of • Southeast Tarrant Transportation Partnership 20/820/287 Interchang • Village Creek Redevelopment • FEMA Voluntary Buyout Grant • Community Rating System (�RS) • Thriving Earth Exchange Project with Dr. Sun 10 g/2/2Ol6 STRATEGIC DISCUSSION : ACHIEVING THE 'ENDS ' ---------------------------------------------------------------------------------------------------------0----------------- ------ ------ ------ ------ ------ ------ ------ ----------------------------- KENN E DALE HAS AN OUTSTANDING PARKS SYSTEM THAT fNCLU DES NEIGHBORHOOD PARKS,A COMPREHENSIVE LINEAR PARK SYSTEM,AND RECREATIONAL FACILITIES LOCATED THROUGHOUT TOWN(View Parks Master Plan) • R�_-storing and Protecting Village Creeles Natural Beauty, Encouraging Lcisurc Sports including Kayaking • Sonora Park Expansion • Acquisition of Parkland along Hudson Village Creek Road • Hike-and-Bike Trail Kennedale Branch • Connection to Regional Hike-and-Bike Trail System (Veloweb) • Railroad-Themed Park on North Road • Parkland Partnership with the Kpnnedale Arts & Culture Foundation STRATEGIC DISCUSSION : ACHIEVING THE 'ENDS ' -----------------------------------------------------------------------------------------------------------0--------------------------- KENNEDALE RESIDENTS RECEIVE EXCELLENT MUNICIPAL SERVICES WITH A STAFF THAT IS PROACTIVE AND RESPONSIVE TO RISIDENTS'NEEDS Certified Public Manager(CPM) imp" and Command Fire Lieutenant Command Training for Police Sergeants .vrk Texas Commission on Law Enforcement Officer Srandards mid Education (TCLEOSE) Supervisory Tr2ining for Corporals • Staffing Changes Fire: Reclassify one position to a Command Fire Lieutenant Streets/Parks&Water: Reclassify two positions as Crew Leaders Librarr. Upgrade one part-time positon to full-time Finance: Reduce one full-time positon to part-time Police:Apply for COPS Grant(for Community Resource Officer) Il 9/2/2016 STRATEGIC DISCUSSION : ACHIEVING THE `ENDS' ------------------------------------------------------------------------------------------------------ 0------------------------------------------------------------------------------------------------------- EmPloyee Healthcare Offering ■ Turnover Rates • Claims Loss Utilization of 113% last year led Steadily Decreasing to renewal offer with 3301Q race increase from _ number Blue Cross Blue Shield, In August, Council YTD 6.8% 5 approved staff's recommendation to move to 2015 17.8% 12 United Health Care and increase 2014 21.9% 15 deductibles to keep overall 2013 23.4% 16 rate increase at 7.6%. • Ofler HSA with f Salary Adjustments PPD buy-up option Last Fiscal Year: • Benefit of Health Trust Police • Fire • Public Works STRATEGIC DISCUSSION : ACHIEVING THE `ENDS ' ------------------------------------------------------------------------------------------------------ 0-------------------------------------------------------------------------------------------------------- KENNEDALE RESIDENTS RECEIVE EXCELLENT MUNICIPAL SERVICES WITH A STAFFTNAT IS PROACTIVE AND RESPONSIVE TO RESIDENTS'NEEDS • Leveraging Funds through Regional Collaboration • Assistance from UTA Graduate Students(rrt rsv Coo). Resident Surrey:(October 2016),Community Raring System —CAS Analysis,and I-3ealthyYuuth&Families Initiative • Asser Management Plan:FY16-17 Budgeted Expenditures r 5 PDliceVehitles,3 Trucks,Roller,Lift,and UlilityVehicle(5408,000) , Roof Repairs to City fa aI Ries,DamagedbyHai1($215,000) Reconstruction of Kmr edale Everman Eudmi Road(540,000) TIRZ:Kennedale Branch Sewer Line Design[5120,000) TIRZ:New Hope Road Preliminary Design for Bncge(5398,0)0) RO Pavement AnalysisthroughN(TCGG{$16,000) ro tar 146a iwn°. H®re Computer Equipment and Server(%0,100) °° it an a tlG ap Will Cost Phone System($80,000) ° s • Crestdale Sewer line($250p00) Hare smau�4i Community Developnent Bbock Grant[CDBG); ° aarememure Sewerl-in?Replacement(S10Q.6IHI) ° Tim e 12 g/2/2Ol6 STRATEGIC DISCUSSION : GENERAL FUND ---------------------------------------------------------------------------------------------------------0-------------------------------------------------------------------------------------------------------- • Current T3x Rate: 76.75 Actual Fund Balance: 16.2% • Effective Tax Rate:77.47 Reportable Balance: 15.3% • Roliback Rate- 82.22 • New Construction. $26 Million Percentage of General Fund Revenue • Mineral Value Dedine- Property Taxes: 57.7% ($24 Million) SalesTaxes: 18.70A The decline in mineral values camn as no surprise, Tnd is not Goal: F-venly Split! Currently about 76%property and 24%sales tax. Considerations WHAT IS A State Legislaitin: Considering The maximum tax Rcvcnuc Caps rate allowed by law that is not subject to vo cc r approval. Additional Revenue STRATEGIC DISCUSSION : GENERAL FUND (ALL NUMBERS x1000) ---------------------------------------------------------------------------------------------------------0-------------------------------------------------------------------------------------------------------- Property Tax 3,174 3,430 3591 Sales Tax 1,491 1,23 1,164 Other 1,357 1,645 1.46 REVENUES 6,022 6,280 6,221 Personnel 3,991 4,208 4,408 O&M(flineratom and Maintenance) 1,838 1,848 1,959 EXPEND17URES 5,929 6,056 6,367 FUND BALANCE 17.50A 19.71/o 16.5% 13 9/2/2016 STRATEGIC DISCUSSION : STREET FUND (ALL NUMBERS x1000) ------------------------------------------------------------------------------------------------------------0----------------------------------------------------------------------------------------------------------- FY14-15 FYIS-14 md-17 Franchise Fees 910 996 927 Other 354 133 42 REVENUES 1,264 1,129 969 Personnel 333 374 4 2 9 O&M(Operations and Maintenaarp) 489 1,342 465 EKPENDITURES 822 1,716 894 FY14-15 FYIS-16 FY16-17 FUND �BALANCE 6619% 0,1% 8,7%1 F STRATEGIC DISCUSSION: WATER/ WASTEWATER FUND LALL NUMBERS x1000) -------------------------------------------------------------------------------------------------------- 0-------------------------------------------------------------------------------------------------------- FY14-1S FYIS-16 FYU-17 Chuges for Services 3,234 4,214 4,768 Other 230 198 224 REVENUES 3,464 4,402 4,992 Persc=6 541 688 726 O&M(uperations md Maintenance) 1,565 2,162 1,876 Debt 504 505 511 Fort Worth Water 470 310 451 Arlington Sewer 572 746 936 Fort Worth Sewer 18 16 18 Cdpitdl 646 130 301 EXPENDITURES 4,316 4,557 4,819 FUND DALAN(E 8.4% 24% 6.1% 14 g/2/2Ol6 STRATEGIC DISCUSSION : WATER/WASTEWATER FUND ISSUES ---------------------------------------------------------------------------------------------------------0------------------------------------------------------------------------------------------------------- CASH POSITION SYSTEM IMPROVEMENTS OVER COMINGYEARS • Fund Balance (Working Ca piW: - Dick Price Area Sewer Line It will take an estimated 0 Crestdale Sewer(Completed 1)uring four years to replenish to 25% Next Four Fis(�al Yea";Ruughly One Nr Year) NlagnolialPaula • Arlington Sewer Rate Increases • Long-Tefrn Water Supply Paula/Timberline CarreaL: Fort Wur6 and North R-oad/Kennedale Branch Groundwater (Wells) Future.-Arlington and Tarrant Loop Dead-End Line Near 1-20 Regional Water District (IMED) Dick Price Water Storage Tank Rehabilitation Sraic Water Plan Arlington Conncction Long-Term Sewer Treatment vs. Groundwater Storage Arlington and Fort Worth and Line Expansions STRATEGIC DISCUSSION : ACHIEVING THE 'ENDS' -----------------------------0 KEMNEDALE IS A WELL PLANNED COMMUNITY BASEDON PRINCIPLES OF • Srrategic Plan Update FA (Guided by Resident Surve in October 2016) • TIPLZ ("fax Increment Reinvestment Zone) Semer Line Design and Construction New Hope Road Preliminary Plan • Replace New Hope Bridge JxDOT) • County Road Bond Program (Little School Road) • Annexation • Amortization • Zoning Changes • UDC Adoption 15 9/2/2016 STRATEGIC DISCUSSION : ACHIEVING THE `ENDS ' -------- -------- -------- -------- -------- ------- --------- ----..---- ----.--- -----.- �1�+ 9/2/2016 TAKEAWAYS • Update the Strategic Plan (to 2025) • Utility Challenges and Cash Position • Use of Debt (to Finance Future Improvements) • Limited Street Reconstruction • County Transportation Program • TxDOT Interchange Plans (20/820/287) • Limited Resources • Village Creek: Restoration and Tributary Challenges • Land Use: Redevelopment and Annexation • Fund Balance Policy d • Legislative Activity ��� .". Ate' ADDRESSING MEET 1 V G S C resletnt Input.At the beglnning of each Reg otar5esslon, • 7:00 jmii.'Fhursday.Seprentber S`i Public Hearing on Proposed FYIG-i7 Bum there i$a"V15ft*FWCW9eWsforam" • 6:30 1).m.Monday.September 12°':Citizen Input Meeting with WaterlWastewator dodng whirh you tan speak about any item W Rsted on the agenda-Comments on Ratc Review Commiucc(Hear the con iniuces proposed reconuncadations to agenda herrtsI hat haw a Public Hearing Council and sign up to provide Feedback or ask questions.There is the;ossibiliry cornporiem arc made on(e that agenda of a quoruru For Council,hDC,and)or P&Z,bur no action will be€aken.) Item is reached If theitem Isonthe agenda,but does not includea Publk 5:30 p.m.McndW,Seprcinber 19`i':City Council Work Session Hearing,there Is not a chance to speak Rate Review Committee's makes recotnniendartans to Ccrk nril{Work Scuionsar, publkly to Council at that meet]", nfirnnariunal wulyt Th— ill hL ar.,aaiem taken and nn Puhlie 9°-caring onul nc�Regular Session} You Can slgn up far ehhef of these • 7,0(p.m.Munch,.September 19`r1.City Council Regular Session opportonitlesto speak byfliling out the • Cauncil will consider adopting;The Budget&Tax Rare(14 Public Hearn ag See 5-prenaber 6th) corrtspondir g"Request t05peak'fpmn and Council will consider repealing Ordinance 599(Whiebsettheoinrntmterirricture) submitHnghtathe CnvSerretarybefore Presen tar!on of and Public nearing on the review corn in mess newly proposed rates the meeting teglto,These forms are available CO tae table to your right as you Council will consider adopting the newly proposed rarer(Prrsemtrd at 5.30 p.nr.Work Srssiaw) enter Cound Chambers bt City Hall-If you T rcre are several other items on this at*rrda,including,P&Z caws and con sidcrarion of have questions,please ask! adoption For the Unillkd Development Code 1 LLUL).New join nr? Infrastructure Replacement Cost Per Household:$48,951 To view the Asset Idanagement Plan,Ends Statement,and other governance documents,please visit eitvafkennedale,comlaavdocs QuESTIDHS oR COmmirs wilytHIS 1pilmwtaom? " Krystal Croup,Dirtdorof hiarre&Information Technology rii 7-485-it to or kcnl mwerityalkennedale_rom Bob t fart,Cbyk(aaager&Eamomi_Development Director R 817-985-2102 or hhartoozynennedale.coni Leslie Galloway,(OySeaetary&Communicat ons Caordi rutnr 817-'985-2109 orjaatlowaaar Citvolkeanedale.tom 17 )c KENNEDALE You're Here,Your Home WWw.dtyofkennedale.com Staff Report to the Honorable Mayor and City Council Date: September 8, 2016 Agenda Item No: EXECUTIVE SESSION -A. I. Subject: The City Council may meet in closed session at any time during the work session or the regular session, pursuant to Section 551.071 of the Texas Government Code for consultation with the City Attorney pertaining to any matter in which the duty of the City Attorney under the Texas Disciplinary Rules of Professional Conduct may conflict with the Open Meetings Act, including discussion on any item posted on the agenda. The City Council will meet in closed session pursuant to Section 551.072 of the Texas Government Code to deliberate the purchase, exchange, lease, or value of real property for the following: 1. Purchase of right-of-way for the extension of Link Street at 5750 Kennedale Parkway II. Originated by: III. Summary: IV. Fiscal Impact Summary: V. Legal Impact: VI. Recommendation: VII.Alternative Actions: VIII. Attachments: 405 Municipal Drive, Kennedale, TX 76060 1 Telephone: 817-985-2100 1 Fax: 817-478-7169