FY 2020-21 Budget Workshop (July 27)

1. BUDGET WORKSHOPS – DAY 1
General Fund O&M
July 27, 2020
City of College Station

2.  Budget Process Overview
 Revenue Overview
 Expenditure –FTE Reductions
 Expenditure Reductions
 Summary / Review and Future Years
 Proposed Property Tax Rate Discussion
AGENDA – BUDGET WORKSHOPS – DAY 1
THE GENERAL FUND

3. BUDGET PROCESS OVERVIEW
City of College Station

4. Covid 19 overshadowed Council’s strategic objectives from January
However, we were able to include several:
Assess opportunities to review local options for property tax levy
Plan for a future bond election
Seek grants and other outside funding
Update the Capital Improvements Program
Examine ways to enhance neighborhood parks for residents and visitors
4
STRATEGIC PLAN OBJECTIVES

5. 5
STRATEGIC PLAN OBJECTIVES
We focused on the City’s Core Value of Financial Sustainability
O&M Objectives Achieved
• Balanced budget with a diversity of revenue sources
• Seek grants and other outside funding
• TDEM, Cares, Families First, HUD etc. not reflected until awarded
• Developed off of current worst case sales tax scenario
• Reflects reduction of compensation expense of ($2,881,000)
• Reflects reduction of services and other expenses ($2,492,000)
Capital Objectives Achieved
• The city will endeavor to maintain or improve its current bond ratings
• Outlook upgraded to Stable outlook
• 1.85% new money and .95% refunding interest rates

6. Special
Council
Meetings
Council Strategic
Planning Meeting
Budget & Finance
Committee
Meetings
Tax Office
No New
Revenue and
Voter Approval
Rate Provided to
City
Council
Meeting
Proposed Ad
Valorem Tax
Rate and
Budget Public
Hearings
Council
Meeting
FY21 Budget
Adoption
FY21 Tax Rate
Adoption
FY21 Fee
Ordinance
Adoption
6
August
27th
August
13th
July 29th
(earliest date)
July 27th
thru July
29th
February
/ March /
April /
May
BUDGET DEVELOPMENT CALENDAR
Budget
Workshops
Call Tax Rate
Public Hearings

7. PROPOSED NET BUDGET SUMMARY
7
FY21 Proposed Net Budget Summary
Fund Type FY 21 Proposed Net Budget
% Change from
FY20
Governmental Funds $ 100,582,186 -4.32%
Enterprise Funds 145,679,212 -0.19%
Special Revenue Funds 19,618,837 3.75%
Subtotal O&M $ 265,880,235 -1.52%
Cash used for Capital Projects 16,870,000 26.78%
Capital Projects 29,871,652 -48.38%
Subtotal Capital $ 46,741,652 -34.32%
Total Net Budget $ 312,621,887 -8.37%

8. GENERAL FUND REVENUES
City of College Station
• Executive Summary

9. 9
POPULATION - CITY AND STUDENT
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
2015 2016 2017 2018 2019 Spring 2020*
Population
CITY STUDENT
Planning estimates City population
from new development permits
• 2020 City Growth 0.83%
• Future Growth expected to slow
Texas A&M Data Services publishes
enrollment information for all campus
• Fall enrollment growth 0.27%
• Average of 88.0% of students are off campus

10. 37.4%
31.3%
18.7%
2.7%
8.1% 1.7%
Ad Valorem Taxes
Sales Tax
Utility Transfer
Other Taxes
Licenses, Permits,
Fines, Charges &
Permits
Other
PERCENTAGE OF REVENUE
10

11. 11
The highest estimate dollar value of permits was in 2016
• ~2 year lag in permit value year and actual value on the tax rolls
• Largest tax roll increases are in FY18 and FY19
Increase in 2018 permits is current year new value
• $156 million in new taxable value
• Increase is in residential
BUILDING PERMITS AND FUTURE GROWTH
$-
$100
$200
$300
$400
$500
$600
-
500
1,000
1,500
2,000
2,500
3,000
2015 2016 2017 2018 2019 2020*
Millions
Number of Construction Permits
Commercial Residential Other Value
0
50
100
150
200
250
300
350
400
450
2018 2019 2020 prelim 2021 est 2022 est
MILLIONS$
New Ad Valorem Valuations

12. 12
2.05% overall increase in
taxable value over last year
• Existing value increase is 0.47%
• New Value increase 1.58%
$1.04 billion still under review
$156 million in new taxable
value
PROPERTY TAX ASSUMPTIONS
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
0
2,000
4,000
6,000
8,000
10,000
12,000
2015 2016 2017 2018 2019 2020 prelim
MILLIONS$
City of College Station Ad Valorem Valuations
Total Taxable Value % Change in Total Value

13. PROPOSED TAX RATES
Rates above are stated cents per $100 assessed valuation
Property Values 1 cent = approx. $800,000
Current Rate Change Proposed FY21
Debt Service Fund 22.1444 (0.5000) 21.6444
General Fund 31.3174 0.5000 31.8174
53.4618 0.0000 53.4618
No New Revenue Rate TBD
Voter Approval Rate TBD
13

14. 14
FY20 YEE is projected under budget by ($1.3M) or (4.3%)
FY21 is Projected ($1.7 to $4.6M) or (6%-16%) below FY20
• FY21 Budget is based off worst case of three scenarios
• Scenarios developed with help of data analytics firm
SALES TAX ASSUMPTIONS
8.59%
1.87%
5.01%
1.12%
4.05%
-5.79%
-11.51%
-13.0%
-8.0%
-3.0%
2.0%
7.0%
12.0%
FY15 FY16 FY17 FY18 FY19 FY20* FY21*
Year over Year Sales Tax Change
$29.5
$30.7
$29.0
$25.6
$27.7
$28.8
$29.7
$30.3
15.0
20.0
25.0
30.0
35.0
FY18 FY19 FY20* FY21* FY22* FY23* FY24* FY25*
Millionsof$
Sales Tax Revenue

15. 15
UTILITY TRANSFER
Utility Transfer
• Increase Electric from 8% to 9%
• Increase collection on other utilities to policy of 10%
• Total dollar increase of $1.5M

16. OTHER REVENUES
0 2,000 4,000 6,000 8,000
Other Taxes
Licenses, Permits, Fines, Charges & Permits
Other
Thousands
FY20 Year-End Expectation
FY21 Proposed Budget
• Other taxes is franchise fees for the use of right of ways
• Building permits and Court fines are adjusted for decreased activity and COVID-19
• Other in FY20 includes sale of land of $1.4M
16

17. QUESTIONS / DISCUSSION / DIRECTION
City of College Station

18. GENERAL FUND EXPENDITURES
City of College Station
• Department Summaries

19. EXPENDITURES BY DEPARTMENT
Police Dept
28%
Fire Dept
24%
Public Works Dept
9%
Parks & Recreation Dept
12%
Planning & Development Sv
Dept
5%
Information Technology Dept
7%
Fiscal Services Dept
5%
General Government Dept
10%
19

20. HEADCOUNT REDUCTIONS
9.68
9.36
8.97
8.88
8.77
8.71
8.33
8.45
8.32
8.38
7.88
7.50
8.00
8.50
9.00
9.50
10.00
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Proposed
2021 *
Total FTEs per 1,000 Population
20

21. HIRING FREEZE PROCESS
..
Position
becomes
Vacant
Supervisor
reviews
impact
and
need for
Position
Supervisor
submits
Critical Hire
Staffing
Form
to
Director
Director
submits
signed form
and position
justification
to CMO
for Approval
Copy HR
on Email
CMO
reviews and
Approves
or Denies
Request
CMO
submits
signed
form to
Fiscal
Services
Director
to verify
Funding
1
2
3
4
5
6
7
HR
receives
completed
form
indicating
denial,
delay, or
approval
If approved
HR will
initiate
Recruiting
Process
Critical Hire
Staffing Request
21

22. 22
EXPENSE REDUCTIONS
Function Police Fire Public Works Parks
Supplies $ 80,000 $ 9,000 $ 6,000 $ 101,000
Maintenance 11,000 (21,000) 189,000 43,000
Professional Services 23,000 48,000 - 67,000
Other Purchased Services 122,000 19,000 2,000 88,000
Travel/Training 18,000 90,000 28,000 -
Misc (5,000) 5,000 - 12,000
Grand Total $ 249,000 $ 150,000 $ 225,000 $ 311,000

23. 23
EXPENSE REDUCTIONS
Function Planning IT Finance Courts
Supplies $ 24,000 $ 32,000 $ 3,000 $ 2,000
Maintenance (3,000) 142,000 - -
Professional Services 89,000 10,000 4,000 1,000
Other Purchased Services 61,000 (51,000) 1,000 1,000
Travel/Training 18,000 - 1,000 1,000
Misc 9,000 7,000 1,000 1,000
Grand Total $ 198,000 $ 140,000 $ 10,000 $ 6,000

24. 24
EXPENSE REDUCTIONS – GENERAL GOVERNMENT
Function CIP City Manager
City
Secretary
Community
Services
Economic
Development
Supplies $ 3,000 $ 13,000 $ 1,000 $ 2,000 $ 2,000
Maintenance - - - - -
Professional Services - 4,000 - - 25,000
Other Purchased
Services - - - 5,000 2,000
Travel/Training 13,000 11,000 8,000 6,000 -
Misc 1,000 - - 6,000 -
Grand Total $ 17,000 $ 28,000 $ 9,000 $ 19,000 $ 29,000

25. 25
EXPENSE REDUCTIONS – GENERAL GOVERNMENT
Function HR
Internal
Audit Legal
Mayor &
Council
Public
Communications
Supplies $ (1,000) $ - $ 1,000 $ - $ 10,000
Maintenance - - - - -
Professional Services - 18,000 - - -
Other Purchased
Services - - - - 7,000
Travel/Training 4,000 - 9,000 9,000 -
Misc - - 36,000 - 1,000
Grand Total $ 3,000 $ 18,000 $ 46,000 $ 9,000 $ 18,000

26. 26
Departmental Travel, Training, Supplies and Other Reductions
EXPENSE REDUCTIONS
Supplies 682,000
Maintenance 280,000
Professional Services 638,000
Travel/Training 447,000
Transportation 78,000
Other Purchased Services 248,000
Direct Capital Contribution 42,000
Misc. 77,000
GRAND TOTAL (2,492,000)

27. QUESTIONS / DISCUSSION / DIRECTION
City of College Station

28. 28
FIVE YEAR FORECAST
(000's)
FY20 YEE FY21 FY22 FY23 FY24 FY25
Beginning Fund Balance
Assigned & Unassigned
$ 24,329 $ 24,440 $ 25,269 $ 26,183 $ 26,218 $ 26,984
Revenues 83,802 82,616 83,934 85,938 88,415 90,814
Operating Expenses 86,033 85,993 87,048 88,808 90,627 90,647
Transfers In/Out (9,010) (9,434) (6,869) (7,068) (7,274) (7,485)
Other Uses/(Sources) 5,043 5,228 2,840 4,163 4,295 4,521
Total Expenditures 82,066 81,788 83,020 85,903 87,648 87,683
Measurement Focus Inc (Dec) (1,626) - - - - -
Surplus/(Deficit) $ 112 $ 829 $ 914 $ 35 $ 767 $ 3,131
Assigned Fund Balance 5,174 7,637 7,721 7,837 8,157 8,644
Ending Unassigned Fund Balance $ 19,267 $ 17,632 $ 18,463 $ 18,382 $ 18,828 $ 21,472
Unassigned Reserve % 23.48% 21.59% 21.36% 20.70% 20.79% 23.80%

29. 29
ENDING UNASSIGNED FUND BALANCE PERCENTAGE
33.7%
25.8%
30.7%
30.2%
23.5%
21.6% 21.4%
20.7% 20.8%
23.8%
15.0%
20.0%
25.0%
30.0%
35.0%
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25

30. 30
Currently able to project a balanced budget in FY22 in spite of anticipated revenue declines
• Ad Valorem = projecting a (2.00%) decrease in valuations for COVID effect
• Sales Tax estimate projecting recovery – still below FY20’s projected year end estimate
Strategies to offset include continuing mitigation strategies from FY21:
• Utility Transfer increase continues
• Continuation of hiring freeze at some level
• Continuation of departmental expense reductions at some level
Should these decreases continue beyond FY21, there will be significant service level reductions that
will be implemented that could possibly include public safety, public works, parks programming,
utility services, and other City services.
FY22 BUDGET OUTLOOK

31. QUESTIONS / DISCUSSION / DIRECTION
City of College Station

32. PROPOSED TAX RATES
Rates above are stated cents per $100 assessed valuation
Property Values 1 cent = approx. $800,000
Current Rate Change Proposed FY21
Debt Service Fund 22.1444 (0.5000) 21.6444
General Fund 31.3174 0.5000 31.8174
53.4618 0.0000 53.4618
No New Revenue Rate TBD
Voter Approval Rate TBD
32

33. AGENDA FOR TOMORROW
 Enterprise Funds
• Electric
• Water / Wastewater
• Solid Waste
• Northgate Parking
 Capital Projects
• General Government Funded
• Utility Funded
• Debt Service Fund
 Special Revenue Funds
 Internal Service Funds
33