City of Weslaco Budget Workshop

1. City of WeslacoCity of Weslaco
Budget WorkshopBudget Workshop
Leonardo Olivares, City ManagerLeonardo Olivares, City Manager
Omar Gonzales, Finance DirectorOmar Gonzales, Finance Director
Anne Burger Entrekin, FirstSouthwestAnne Burger Entrekin, FirstSouthwest
6:00pm; 23 February 2010
Weslaco City Hall

2. 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

3. 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

4. 1. Bond Ratings1. Bond Ratings
Anne Burger EntrekinAnne Burger Entrekin
Managing DirectorManaging Director
FirstSouthwestFirstSouthwest

5. 2. City’s Current Fiscal Condition2. City’s Current Fiscal Condition
 RevenuesRevenues 33% of FY1033% 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

6. 2. City’s Current Fiscal Condition2. City’s Current Fiscal Condition
 ExpendituresExpenditures 33% of FY1033% 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

7. 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
94,116.60
85,934.19
122,850.52
215,876.31
86,943.19
48,684.11
$0
$50,000
$100,000
$150,000
$200,000
$250,000
00-LEG
ISLATIVE
01-AD
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02-CITY
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04-ELEC
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05-FIN
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06-TAX
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09-LAW10-BLD
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11-PLA
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14-TRA
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BUDGET
ACTUAL

8. 2. City’s Current Fiscal Condition2. City’s Current Fiscal Condition
264,451.50
36,340.13
131,876.25
14,702.63
30,000.00
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-CO
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FO
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CEM
ENT
18-EM
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19-EM
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20-PUBLIC
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21-UR
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PM
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24-STR
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&
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25-STR
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CLEAN
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26-STR
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LIG
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29-DR
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30-M
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31-VITAL
STATISTICS
40-PAR
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&
RE
CR
EA
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41-LIBR
AR
Y
42-SW
IM
M
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BUDGET
ACTUAL

9. 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

10. 2. City’s Current Fiscal Condition2. City’s Current Fiscal Condition
 ExpendituresExpenditures
Composition of Expenses for Fiscal Year 2009-2010
Personnnel Services
76%
Other Charges
18%
Supplies
5%
Capital Outlay
0%
Operating Transfers
1%
Personnnel Services
Other Charges
Supplies
Capital Outlay
Operating Transfers

11. 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’semployees and financial institution of City’s
managerial and financial stability.managerial and financial stability.
 Retool municipal operations to ensure the right services areRetool 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 Reductions
2.2. Improved ProductivityImproved Productivity
3.3. Enhanced RevenuesEnhanced Revenues
4.4. Fund ManagementFund Management

12. 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

13. 3. Retooling NOW: Possible Options3. Retooling NOW: Possible Options
IMPROVED 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

14. 3. Retooling NOW: Possible Options3. Retooling NOW: Possible Options
REVENUE 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

15. 3. Retooling NOW: Possible Options3. Retooling NOW: Possible Options
FUND 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

16. DiscussionDiscussion
 Mayor & CommissionersMayor & Commissioners
 City StaffCity Staff
 Financial AdvisorFinancial Advisor