The proposed FY 2012-2013 budget for the City of College Station totals $253 million, with $212 million allocated for operations and maintenance and $40 million for capital projects. The budget overview notes a modest economic recovery leading to higher property values and sales tax revenue. It outlines organization restructuring, continued reductions to the electric utility transfer, maintaining service levels, and investing in infrastructure while providing competitive pay and benefits. The budget will be reviewed over three workshops in August before a public hearing and final adoption in September.

1. City of College
Station
FY 2012-2013
Proposed Budget Overview
August 9, 2012 1

2. Mission Statement
On behalf of the citizens of College
Station, home of Texas A&M University,
we will continue to promote and
advance the community’s quality of
life.
2

3. Council Strategic Initiatives
Financially Sustainable City
Core Services and Infrastructure
Neighborhood Integrity
Diverse Growing Economy
Improving Mobility
Sustainable City
3

4. FY 2012-2013 Proposed Budget
Operations & Maintenance $212,643,409
Total Capital $40,490,202
Total Proposed Net Budget $253,133,611
4

5. Key Budget Points
Aligning our resources and
priorities for the long term future
of College Station
5

6. Key Budget Points
Modest economic recovery resulting in:
– Positive property values, and sales tax revenue
Organization restructuring and streamlining
– Provide funding for Public Safety and other core
services
Continuing implementation of reductions in
Electric Utility transfer
6

7. Key Budget Points
Providing competitive and sustainable pay and
benefits
Maintaining priority service levels
Continuing to invest in capital infrastructure
7

8. Modest Economic Recovery
Property Values
– Certified values $5,944,312,987
Increase of 3.6%
– Proposed tax rate is 43.0687 cents.
This is the effective tax rate
Current tax rate is 43.7995 cents.
8

9. Proposed Property Tax Rate
Provide funding for:
Debt Service
Operations and Maintenance
Approved Change Proposed
FY 12 FY 13
Debt Service 20.1536 (0.5901) 19.5635
Operations and Maint. 22.6459 (0.1407) 23.5052
43.7995 (0.7308) 43.0687
9

10. Modest Economic Recovery
Sales Tax
– During recession sales tax revenues slowed
– FY 12 sales tax projected to be higher than
forecast
$21.3 million
– FY 13 growth rate is 2%
$21.7 million
Uncertainty in economy
10

11. Organization Restructuring
and Streamlining
Budget reductions
– $7.6 million over the last 4 years
– 53.75 positions eliminated in FY 11 - FY 13
– 10 of these removed from the proposed FY 13
budget.
11

12. Organization Restructuring
and Streamlining
Public Safety
– Increased public safety by 43 positions from
FY 09 – FY 13
– Includes 8 additional Police public safety
positions proposed in FY 13.
12

13. Continuing Implementation of
Electric Utility Transfer Policy
In 2011 changed policy to reduce transfer
from Electric Fund
Reduce to 6% franchise level
– FY 12 $2 million reduction
– FY 13 $ 1 million reduction
Avoided electric rate increase in FY 12
and FY 13 13

14. Competitive and Sustainable
Pay and Benefits
Attract and retain well qualified workforce
Compensation and Benefits Ad Hoc
Committee purpose
– Review compensation and benefit policies
and philosophy including:
Compensation
Retirement
Health Care
Retiree Heath
14

15. Competitive and Sustainable
Pay and Benefits
Pay Plan
– 2.5% Performance Pay
– Continue Police Step Plan
Retirement - TMRS
– Maintain core components
7% employee contribution
2 to 1 match
– Propose changes to 2 provisions
Updated Service Credits 100% to 75%
Cost of Living Adjustment (COLA) 70% to 50% 15

16. Providing Competitive and
Sustainable Pay and Benefits
Health Insurance
– Review plan design
– Attempt to hold costs
– Wellness programs
– Increased City/employee contributions as
necessary
– Impacts of health care policy changes
unknown
16

17. Maintaining Priority Service
Levels
Public Safety
– Additional Police resources
– Fire Station #6 opening
Streets and Transportation
– Street Maintenance
– Traffic and Transportation
Other areas
17

18. Maintaining Priority Service
Levels
Utilities
– Electric
– Water
– Wastewater
– Sanitation
– Drainage
18

19. Continuing to Invest in
Capital Infrastructure
Streets and Transportation
Parks and Recreation
Technology
Utility Projects
– Electric, Water, Wastewater, Drainage
19

20. Financial Forecast
Show future impact of current decisions
Fiscal and budgetary policies
Revenue assumptions
– Property values and tax rate decisions
– Sales tax revenue estimates
– Completing utility transfer policy change
20

21. Financial Forecast
Expenditure assumptions
– Limited new services
– Capital project operations and maintenance
– Public safety
Aligning resources and priorities for long
term future of College Station
21

22. Proposed Budget Assumptions
Base budget funds current service levels
– Budget reductions
– Pay plan/retirement/health insurance costs
Service level increases
– Additional Police resources
– Streets and Transportation
22

23. Proposed Budget Assumptions
FY 13 budget impacted by more positive
economic conditions
Budget reductions
Effective tax rate of 43.0687 proposed
– Lower than current rate of 43.7995
Complete electric transfer policy change
23

24. Proposed Budget Assumptions
No electric rate increase proposed
No water, sanitation or drainage rate
increase
5% wastewater rate increase
24

25. Key Budget Decisions
 Funding levels for City services
 Not all needs are addressed
 Tax rate
 Effective rate proposed
 Utility rates
25

26. Budget Review Format
 Propose reviewing key policy areas
 Review at the fund level
 Streamline time needed to review the Budget
26

27. Calendar
 Thursday August 9 – Present Proposed Budget
 Thursday August 16 - Budget Workshop #1
 Citywide Budget Issues
 General Fund
 Other Governmental Funds
 General Government Capital Projects
 Friday August 17 - Budget Workshop #2
 Enterprise (Utility) Funds
27

28. Calendar
 Monday August 20 - Budget Workshop #3
 Special Revenue Funds
 Internal Service Funds
 Outside Agencies
 Discuss Tax Rate
 If Needed
 Tuesday August 21 and Wednesday August 22
28

29. Calendar
 Thursday August 23
 Public Hearing on Budget
 Thursday September 13
 Adopt Budget and Tax Rate
29

30. Council Discussion
30