2019_09.13 CC Packet - Special
KENNEDALE CITY COUNCIL AGENDA
SPECIAL MEETING | SEPTEMBER 13, 2019 AT 2:00 PM
CITY HALL COUNCIL CHAMBERS, 405 MUNICIPAL DRIVE
I. CALL TO ORDER
II. ROLL CALL
III. VISITOR AND CITIZEN FORUM
At this time, any person may address the City Council about work session items, provided that a ‘Speaker Request
Form’ is submitted to the City Secretary before the work session begins. Speakers are allotted three (3) minutes,
must limit their comments to the subject indicated on the submitted form, and should address the Council as a
whole, rather than individual Councilmembers or staff.
IV. WORK SESSION
A. Continued discussion regarding the City Manager's Proposed Fiscal Year 2019–2020 annual
budget and the supporting Tax Rate
V. REGULAR SESSION
A. Public hearing on the Fiscal Year 2019–2020 Tax Rate
1. Staff Presentation
2. Public Hearing
3. Staff Response and Summary
4. Announcement of Date of Vote on Tax Rate
VI. ADJOURNMENT
CERTIFICATION
I DO HEREBY CERTIFY THAT THE SEPTEMBER 13, 2019 KENNEDALE CITY COUNCIL AGENDA WAS POSTED INSIDE THE MAIN
ENTRANCE OF CITY HALL (405 MUNICIPAL DRIVE), IN A PLACE CONVENIENT AND READILY ACCESSIBLE TO THE GENERAL
PUBLIC AT ALL TIMES; AND THAT SAID AGENDA WAS POSTED AT LEAST SEVENTY-TWO (72) HOURS PRECEDING THE
SCHEDULED TIME OF SAID MEETING, IN ACCORDANCE WITH CHAPTER 551 OF THE TEXAS GOVERNMENT CODE.
_____________________________
LESLIE E. GALLOWAY, CITY SECRETARY
In compliance with the Americans with Disabilities Act (ADA), the City of Kennedale will provide for reasonable
accommodations for persons attending meetings. This facility is wheelchair accessible and accessible parking spaces
are available. Requests for sign interpreter services must be made forty-eight (48) hours prior to the meeting by
calling 817-985-2104 or (TTY) 1-800-735-2989.
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: September 13, 2019
Agenda Item No: WORK SESSION - A.
I. Subject:
Continued discussion regarding the City Manager's Proposed Fiscal Year 2019–2020 annual budget and the
supporting Tax Rate
II. Originated by:
Lakeita Sutton, Director of Finance and Information Technology
III. Summary:
A draft of the Proposed FY19–20 Budget was distributed to the Council on Tuesday, August 6, before being
presented by City Manager George Campbell during a Special Meeting on Thursday, August 8.
The final version of the Proposed FY19–20 Budget was filed with the City Secretary's Office on Monday, August 12
(and is available for public inspection either in person or via www.cityofkennedale.com/budget). It was distributed to
the Council on Friday, August 16, along with an Informal Staff Report (attached) outlining the sources and outcome of
changes in proposed amounts. Discussion of the Budget continued during the Work Session of the Tuesday, August
20 Regular Meeting. A second Informal Staff Report (also attached) was sent to the Council on Wednesday, August
28, addressing questions from Council during that meeting.
For your reference, staff's presentation from the Thursday, September 5 Public Hearing on the Proposed FY19–20
Budget is attached (with updated dates and one correction to slide 9 regarding the ending fund balance of the
Stormwater Fund, as discussed during that meeting).
At this time, the Council may continue any discussion regarding the FY19–20 Proposed Budget and Tax Rate, and
staff will, again, be available to answer questions.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
VIII. Attachments:
1.2019_09.13 Proposed Budget 2019-2020 PPT for
Pub Hearing
2019_09.13 Proposed Budget 2019-2020 PPT for Pub
Hearing.pdf
2.2019_08.16 ISR FY19-20 Proposed Budget 2019_08.16 ISR FY19-20 Proposed Budget.pdf
3.2019_08.28 ISR Budget Questions From 8.20
Council Work Session
2019_08.28 ISR Budget Questions From 8.20 Council
Work Session.pdf
9/9/2019
1
PROPOSED BUDGET
HIGHLIGHTS
FISCAL YEAR 2019–20
SEPTEMBER 13, 2019 AT 2:00 P.M.
CITY COUNCIL WORK SESSION
Major Assumptions & Highlights
GENERAL FUND
9% increase in property valuations
One-cent property tax increase
Implementation of compensation
and pay plan for City staff
9/9/2019
2
Major Assumptions & Highlights
GENERAL FUND (cont.)
4.5% increase in health insurance costs
Projected drawdown of $854,694
7.94% Fund Balance as a Percentage
of Expenditures
Budget Enhancements
GENERAL FUND
General Fund Salary Improvements $320,000
(Additional $30,000 in Streets Fund)
Breathing Apparatus (Fire Dept.) $40,830
4.5% Health Insurance Increase $17,376
One Additional Police Officer $95,714
Planner I Position $56,208
Office Space in Library $14,000
Employee Assistance Program $1,746
9/9/2019
3
General Fund Expenditures
FY16-17
ACTUAL
FY17-18
ACTUAL
FY18-19
APPROVED
FY18-19
PROJECTED
FY19-20
PROPOSED
City Manager $ 356,066 $ 361,526 $ 365,464 $ 335,716 $ 347,179
Mayor/City Council 129,553 158,562 177,323 174,422 186,444
City Secretary 152,017 130,434 164,073 173,982 167,322
Municipal Court 110,036 89,729 108,148 99,072 110,778
Human Resources 123,083 165,221 104,909 103,537 104,931
Finance 293,954 341,383 358,365 316,745 378,601
Police 2,056,591 2,119,441 2,604,764 2,371,491 2,432,866
Police SRO 133,728 142,259 155,077 149,258 158,144
Fire 1,679,349 1,727,193 1,907,680 1,915,356 2,095,168
Community Development 305,758 337,991 371,590 380,707 395,323
Senior Citizen Center 66,084 49,895 54,528 53,244 63,376
Library 284,790 311,250 268,259 276,626 276,629
Non-Departmental 504,400 390,256 511,749 429,572 519,887
Health Insurance Increase 17,376
Salary Improvements 320,000
New Programs/Resources 208,498
Total Expenditures $ 6,195,408 $ 6,325,141 $ 7,151,929 $ 6,779,728 $ 7,782,522
Tax Rates
Current Tax Rate: $0.725714/$100
Proposed Tax Rate: $0.734970/$100
Maximum Rate Council Can Adopt*:
$0.734971/$100
Rollback Tax Rate: $0.734971/$100
Effective Tax Rate: $0.688321/$100
*Without possibility of a rollback election
9/9/2019
4
Major Assumptions & Highlights
WATER AND SEWER FUND
Arlington contracts in place
$220,000 for FATHOM early release (one-time expense)
Increase franchise fee to Street Fund from 5% to 7%
($77,000)
Water/Sewer renewal for Linda Road ($300,000)
Working Capital 31.2%
No Water/Sewer Rate Increase
Major Assumptions & Highlights
STREET IMRPOVEMENT FUND
Increase franchise fee transfer to Streets from
the Water/Sewer Fund (from 5% to 7%)
Adds approximately $77,000 in revenue
Recommended adoption of Street Maintenance
Fee (Similar to Stormwater Fee)
9/9/2019
5
Major Assumptions & Highlights
STORMWATER FUND
Recommend increasing Stormwater Fee from
$3.50 to $4.50 (as a part of originally planned step program)
Adds approximately $33,200 in revenue
Cost of needed drainage projects: $1,009,371
Proposed Budget includes $866,787 drawdown,
leaving an ending fund balance of $354,890
Next Steps
TODAY: FRIDAY, SEPTEMBER 13 AT 2:00 P.M.
Public Hearing on Tax Rate
TUESDAY, SEPTEMBER 17
Regular Meeting to Adopt Budget and Tax Rate
#2019-08-16
PAGE 1 CITY OF KENNEDALE | www.cityofkennedale.com
INFORMAL STAFF REPORT
to the Mayor and City Council
DATE: Friday, August 16, 2019
SUBJECT: FY19–20 Proposed Budget
ORIGINATED BY: Lakeita Sutton, Finance Director
#2019-08-16
PAGE 2 CITY OF KENNEDALE | www.cityofkennedale.com
SHOULD YOU HAVE ANY QUESTIONS REGARDING THIS REPORT, PLEASE CONTACT FINANCE
DIRECTOR LAKEITA SUTTON AT 817-985-2110 OR LSUTTON@CITYOFKENNEDALE.COM.
Previously Proposed Amount Updated Proposed Amount $ Change
Health Care Increased Cost 9,125$ 17,376$ 8,251$
-$
Total Expenditures 7,774,271$ 7,782,522$ 8,251$
-$
Fund Balance Draw Down 854,694$ 862,945$ 8,251$
Fund Balance as a % of Expenditures 8.05%7.94%
GENERAL FUND
Previously Proposed Amount Updated Proposed Amount $ Change
Water Utility M&O City of Arlington 1,175,000 1,075,000 (100,000)
-
Total Expenditures 4,450,939 4,350,939 (100,000)
Fund Balance Draw Down 422,608 322,608 (100,000)
Fund Balance as a % of Expenditures 28.31%31.26%
WATER SEWER FUND
Previously Proposed Amount Updated Proposed Amount $ Change
Engineering Services 10,000 - (10,000)
-
Total Expenditures 10,000 - (10,000)
TIRZ/TIF FUND
#2019-08-28
PAGE 1 CITY OF KENNEDALE | www.cityofkennedale.com
INFORMAL STAFF REPORT
to the Mayor and City Council
DATE: Wednesday, August 28, 2019
SUBJECT: Budget Questions from the August 20, 2019 City Council Work Session
ORIGINATED BY: Lakeita Sutton, Finance Director
During the Work Session of the Tuesday, August 20 City Council meeting, Councilmember Rhodes
had several questions regarding the FY19–20 Proposed Budget. Below you will see those
questions, as understood by staff, as well as the answers to each.
Of note, the page numbers cited within this report reference the page numbers as marked (e.g., the
page marked 18 is the 24th page of the PDF) in the Proposed Budget that was filed with the City
Secretary on Monday, August 12, and is available to the public at cityofkennedale.com/budget
(rather than the hardcopy draft distributed to the Council on Tuesday, August 6). The page
numbers are similar in each, but not identical.
On page 18, in the “All Funds Expenditure Summary”, why is there a $10,000 expenditure
included for the TIF Fund for FY19–20, when no correlating expenditure is shown on the
individual budget sheet for the TIF?
The $10,000 should have been removed from the “All Funds Expenditure Summary” (as it was on
the budget sheet) since this is not being proposed for FY19–20. Staff will make this correction
before presenting an updated budget document for consideration by the Council.
On page 21, why is there such a large difference between the FY18–19 Budgeted and FY18–19
Projected “Miscellaneous Income” line item?
Landfill revenue should be received by the Capital Projects Fund. However, in FY18–19, $83,000
in landfill revenue was erroneously budgeted to be received by the General Fund instead. This
error was recognized and corrected before calculating the FY18–19 projection. For FY19–20, the
landfill revenue is appropriately budgeted to be received into the Capital Projects Fund.
On page 28, what caused the increase in the Mayor/Council “Special Services” line item for
FY19–20?
The $6,350 difference (from FY18–19) reflects the cost of a consultant/facilitator for the City
Council’s annual retreat. This expense was previously paid from the City Manager’s budget.
However, since it is a City Council expense, it is appropriately being budgeted there for FY19–20.
In the event the expense is not incurred in FY 19–20, a savings will be recognized.
#2019-08-28
PAGE 2 CITY OF KENNEDALE | www.cityofkennedale.com
On page 47, why did gas services increase from $1,800 in FY18–19 to $2,500 in FY19–20?
The previous two years have shown an annual increase of approximately $400 for natural gas
service to the Senior Center. For FY18–19, this line item was under-budgeted at $1,100. Staff
estimates that the $2,500 budgeted for FY19–20 will account for both the historical increase plus
ongoing inflation.
On page 51, why is the budgeted $65,000 transfer from the General Fund to the Capital
Replacement Fund not included in the FY18–19 projection?
The Capital Replacement Fund has sufficient funding to support all budgeted needs for the
remainder of FY18–19. Therefore, in an effort to offer relief to the General Fund, staff proposes to
delay this transfer (originally budgeted to occur in FY18–19) until FY19–20. The Funds will be
used in FY19–20 for information technology (IT) and/or vehicle replacements as needed. In the
event that the expense is not incurred in FY19–20, the General Fund will, again, be provided relief
and savings will be recognized.
On page 54, why is the Police Personnel increasing by three positions in FY19–20?
The original personnel budget included all three of the additional requested patrol officers.
However, the final Proposed Budget recommended by the City Manager for FY19-20 reflects the
addition of just one of these positions (for a total of 22 FTEs (Full-Time Equivalents)) for FY19–20.
Staff will make this correction before presenting an updated budget document for consideration
by the Council.
On page 64, what does the $10,780 in the Enterprise Lease Senior Center line item cover?
This amount covers the leased van for the Senior Center, which — as was discussed at the August
20 meeting — does not include a lift.
On page 67, why did Drainage Improvements increase from $47,993 (FY18–19) to $1,009,371
(FY19–20)?
Several drainage projects (including pipe rehabilitation on Hilltop Court and improvements along
Pennsylvania Avenue) are budgeted in FY19–20 as a part of the Five-Year Stormwater Capital
Projects Plan. However, during the discussion on August 20, it was determined that some of the
projects originally included in the FY19–20 Proposed Budget will actually be funded with
proceeds from the 2018 Tax Note. Therefore, the “Drainage Improvement” line item for FY19–20
will be updated to $427,000 (instead of $1,009,371). As a result, the drawdown of the Stormwater
Utility Fund for FY19–20 will decrease from $866,878 to $284,416, with a projected ending Fund
Balance of $937,261, providing additional opportunity for drainage improvements in FY 19-20.
#2019-08-28
PAGE 3 CITY OF KENNEDALE | www.cityofkennedale.com
On page 78, why did the Temporary Part Time line item in the Streets Fund increase significantly
from FY18–19 to FY19–20?
There are currently three employees budgeted in the Streets Fund that were previously positions
in the Water/Sewer Fund. This change occurred as a result of the maintenance and operations
functions within Water/Sewer Fund being transferred to the City of Arlington in March 2019.
On page 94, why are there two “Misc-Income Paver” line items in the Park Dedication Fund?
These two line items represent identical object codes being utilized in two different fiscal years.
One of the line items will cease to appear in future years, but is still needed at this time for
accounting purposes.
Regarding renovations at the Senior Center:
There are no funds allocated in the FY19–20 Budget for this project. However, estimates are
expected to be available in the near future. Funding options will then be considered and
recommended to Council as appropriate.
SHOULD YOU HAVE ANY QUESTIONS REGARDING THIS REPORT, PLEASE CONTACT FINANCE
DIRECTOR LAKEITA SUTTON AT 817-985-2110 OR EMAIL LSUTTON@CITYOFKENNEDALE.COM .
STAFF REPORT
TO THE HONORABLE MAYOR AND CITY COUNCIL
Date: September 13, 2019
Agenda Item No: REGULAR SESSION - A.
I. Subject:
Public hearing on the Fiscal Year 2019–2020 Tax Rate
1. Staff Presentation
2. Public Hearing
3. Staff Response and Summary
4. Announcement of Date of Vote on Tax Rate
II. Originated by:
Lakeita Sutton, Director of Finance and Information Technology
III. Summary:
At this time, City Staff will make a presentation prior to Council receiving public comments, if any, on the
FY2019–2020 Proposed Tax Rate. The total Proposed Ad Valorem (Property Tax) Rate for FY19–20 is $0.734970
(per $100), of which $0.544429 supports Maintenance and Operations (M&O) and 0.190541 supports Interest and
Sinking (I&S) (or "debt service").
The first public hearing on the Tax Rate was held Thursday, September 5, at 7:00 p.m. in the Council Chambers at
City Hall (405 Municipal Drive, Kennedale, TX 76060). The dates of these public hearings were published in the Fort
Worth Star-Telegram (the City's newspaper of record) on Friday, August 23, 2019.
IV. Fiscal Impact Summary:
V. Legal Impact:
VI. Recommendation:
VII. Alternative Actions:
The governing body may vote on the proposed tax rate at the public hearing. If the governing body does not vote on
the proposed tax rate at the public hearing, the governing body shall announce at the public hearing the date, time,
and place of the meeting at which it will vote on the proposed tax rate.
AT EACH OF THE TWO HEARINGS, THE GOVERNING BODY MUST ANNOUNCE THE DATE, TIME AND PLACE
OF THE MEETING AT WHICH IT WILL VOTE ON THE TAX RATE AS FOLLOWS:
The Vote on the FY 2019-2020 Tax Rate will be held:
DATE: TUESDAY, SEPTEMBER 17, 2019
TIME: 7:00 P.M.
PLACE: THESE COUNCIL CHAMBERS IN CITY HALL (405 MUNICIPAL DRIVE, KENNEDALE, TX 76060)
VIII. Attachments: