NOTICE OF CITY COUNCIL WORKSHOP MEETINGNOTICE IS HEREBY GIVEN THAT THE CITY COUNCIL OF THE CITY OF ROSENBERG, FORT BENDCOUNTY, TEXAS, WILL MEET IN A WORKSHOP SESSION OPEN TO THE PUBLIC AS FOLLOWS: 

DATE:   Saturday, August 6, 2016

TIME:   8:00 a.m.

PLACE:     Rosenberg City HallCity Hall Council Chamber2110 4th StreetRosenberg, Texas 77471

PURPOSE:     City Council Workshop Meeting, agenda as follows:

During a City Council Workshop, the City Council does not take final action on the agenda items and anyconsideration of final action will be scheduled at a Regular or Special City Council Meeting. Public comments arewelcomed at Regular or Special City Council Meetings. No public comments will be received at a WorkshopMeeting.

The City Council reserves the right to adjourn into Executive Session at any time during the course of this meetingto discuss any of the matters listed below, as authorized by Title 5, Chapter 551, of the Texas Government Code.             

Call to order:  City Hall Council Chamber 

AGENDA 

1.   Review and discuss the 2016 certified values and effective tax rate, and take action as necessary todirect staff. (Joyce Vasut, Executive Director of Administrative Services) 

2.   Review and discuss Fiscal Year 2016-2017 Budget as submitted by the Interim City Manager on July 26,2016, pursuant to Rosenberg City Charter, and take action as necessary to direct staff. (Joyce Vasut,Executive Director of Administrative Services) 

3.   Adjournment. 

           DATED AND POSTED this the _________ day of ______________ 2016, at ___________m.,

 

by ______________________________.

 ____________________________________________Attest:Linda Cernosek, TRMC, City Secretary

____________________________________________Approved for Posting:John Maresh, Interim City Manager

____________________________________________Approved:Cynthia A. McConathy, Mayor

 Reasonable accommodation for the disabled attending this meeting will be available; persons withdisabilities in need of special assistance at the meeting should contact the City Secretary at (832)595-3340.

CITY COUNCIL COMMUNICATION

City Council Workshop Meeting ITEM # 1. Meeting Date: 08/06/2016  

Item Title: Tax Rate DiscussionElection District: N/A MUD No.: N/A

ITEM/MOTIONReview and discuss the 2016 certified values and effective tax rate, and take action as necessary to direct staff.(Joyce Vasut, Executive Director of Administrative Services) 

EXECUTIVE SUMMARYThis Agenda item will provide City Council an opportunity to discuss the City's proposed 2016 tax rate for FY2017. Staff will present information regarding the effective tax rate, the rollback rate and the proposed tax rate. 

Reviewed By: N/A Approved for Submittal: John Maresh, Interim City Manager  

FISCAL IMPACT

Annualized Dollars: N/A Budgeted: N/ASource of Funds: N/A 

AttachmentsPresentation - Property Tax Rates 

City of RosenbergProperty Tax Rates

August 8, 2016

1

Tax Rates

• Debt Rate – The portion of the total tax rate used to generate revenues for the Debt Service Fund to pay existing debt obligations including principal and interest. 

• Maintenance and Operating Rate (M&O Rate) – The portion of the total tax rate used to generate revenues for General Fund maintenance and operating costs.  

• Total Tax Rate – The total of the Debt Rate and M&O rate.  Effective tax rate is calculated on the total rate. 

2

Summary of Debt Rate

• The Debt Rate is a calculation.  Council does not set the debt rate.

Required Debt Service(1) Less “Other Sources”(2)

2016 Total Taxable Value x $100(1) – Required Debt Service is based on current debt plus future debt issues in FY2017.

(2) – “Other Sources” – includes transfers from the Water/Wastewater Fund, RDC and the Civic Center Fund to cover 100% of their debt obligations.   

$8,095,966 ‐ $3,253,373  

$2,259,321,753 x $100           =              $0.214338

3

Effective Tax Rate (ETR)• The Texas Constitution and the Tax Code require local taxing units to make tax 

payers aware of tax rate proposals known as “Truth‐In‐Taxation” and requires cities to calculate the Effective Tax Rate (ETR).

• The ETR will generate the same amount of tax revenue on the same properties that existed the previous year.

Adjusted 2015 Tax Revenues (1) 

2016 Adjusted Taxable Value (2)   x   $100

$9,576,380

$2,168,603,638  x   $100 = $0.441591

(1) Includes all supplements and corrections to the tax roll, since prior year and does not include any properties lost (deannexed, new exemption or special appraisal).

(2) Includes value of property still under protest and does not include the value of any new improvements or annexations 4

2016 Tax Rate Analysis

5

$0.503806 

$0.470000 

$0.459385 

$0.450000 

$0.441591 

$0.41 $0.42 $0.43 $0.44 $0.45 $0.46 $0.47 $0.48 $0.49 $0.50 $0.51

ROLL BACK RATE

CURRENT TAX RATE

PROPOSED BUDGET

TARGET PROPOSED RATE

EFFECTIVE TAX RATE

The Effective Tax Rate (ETR) is the tax rate that will generate the same amount of property tax revenue on the same properties that existed in the previous year.    ‐ Adopting the effective tax rate is not feasible since Sales Tax decreased by nearly $600,000.  

$0.442 ‐ Reduction of $402,015 in the Proposed Budget would be required to adopt the ETR.‐ Provides for no additional positions.

The Target Rate for the Proposed Budget was based on values received on 07/22/2016 from the Central Appraisal District.  When the Proposed Budget was presented, a $0.45 tax rate would have generated enough revenue to fund the Proposed Budget.

$0.450 ‐ Reduction of $212,028 in the Proposed Budget would be required for a tax rate of $0.45.‐ Provides for no additional positions.

$0.459

Although the Proposed Budget was targeting a tax rate of $0.45, there were significant decreases in the values received from CAD causing the calculated rate to fund the proposed budget to increase. From July 20 to July 29, 35% of value under review was lost. The proposedbudget, as presented, would require a tax rate of $0.459385 

$0.470 The Current Tax Rate for 2015 is $0.47.  Adopting the current tax rate for tax year 2016 would allow funding for the proposed budget plus the addition of three police officers. 

$0.504

The Rollback Rate is the tax rate that would be needed to raise the same amount of M&O taxes that the taxing unit levied in the prior year plus eight percent.  If a taxing unit adopts a tax rate that exceeds the rollback tax rate, voters in the taxing unit may petition for an election on the tax increase. 

6

Proposed Tax Rate

Adjusted Preliminary Values

Certified Values07/29/2016

Taxable Value $2,306,437,111 $2,259,321,753

Proposed Rate $0.45/$100 value $0.459385/$100 value

Total Property Tax Revenues $10,378,967 $10,378,967

Debt Service Requirement  ($4,842,588) ($4,842,588)

M & O Proposed $5,536,379 $5,536,379

7

Preliminary and Certified Values

Date Preliminary ARB ApprovedUnder ARB Review

5/4/2016 $2,457,951,649  ‐ ‐

7/11/2016 $2,304,681,950  ‐ ‐

7/20/2016 ‐ $2,139,820,311  $139,944,161 

7/29/2016 ‐ $2,199,121,566  $46,643,103 

8

 $2,100,000,000

 $2,150,000,000

 $2,200,000,000

 $2,250,000,000

 $2,300,000,000

 $2,350,000,000

 $2,400,000,000

 $2,450,000,000

 $2,500,000,000

May 4 ‐40.7

July 11 ‐43.5

July 20 ‐43.9

July 29 ‐44.2

$2,457,951,649 

$2,304,681,950 $2,279,764,472 

$2,245,764,669 

Tax Rate History

9

$0.555 

$0.555 

$0.545 

$0.520  $0.500 

$0.500 

$0.500 

$0.510 

$0.500 

$0.490 

$0.470 

 $0.420

 $0.440

 $0.460

 $0.480

 $0.500

 $0.520

 $0.540

 $0.560

 $0.580

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Should the City Reduce the Tax Rate?

• Sales tax has continued to fall since June 2015.

• $600,000 less sales tax in 2016 than 2015.

• City is growing and providing services to more people with limited resources. 

• Numerous infrastructure needs including streets, drainage, sidewalks, parks and facilities

10

Tax Rate Comparison(Cities with Population between 30,000 & 40,000)

11

$0.798 

$0.714 

$0.602 

$0.569 

$0.611 

$0.585 

$0.710 

$0.662 

$0.568 

$0.470 

$0.491 

$0.372 

$0.669 

$0.677 

$0.680 

 $‐

 $0.100

 $0.200

 $0.300

 $0.400

 $0.500

 $0.600

 $0.700

 $0.800

 $0.900

So where do we go from here?

12

• We don’t have to determine a                                                          property tax rate today.

• We need to review the proposed                                     expenditures and determine if there are additional needs or changes.

• We need to consider all the factors (sales tax, personnel needs, infrastructure needs, 2017 rollback issues).

• On Monday, August 8, 2016, Council will need to vote on a  tax rate in order to publish a notice on the tax rate and set public hearing dates.

$0.503806 

$0.470000 

$0.459385 

$0.450000 

$0.441591 

$0.40 $0.42 $0.44 $0.46 $0.48 $0.50 $0.52

ROLL BACK RATE

CURRENT TAX RATE

PROPOSED BUDGET

TARGET PROPOSED RATE

EFFECTIVE TAX RATE

CITY COUNCIL COMMUNICATION

City Council Workshop Meeting ITEM # 2. Meeting Date: 08/06/2016  

Item Title: FY2017 Budget DiscussionElection District: N/A MUD No.: N/A

ITEM/MOTIONReview and discuss Fiscal Year 2016-2017 Budget as submitted by the Interim City Manager on July 26, 2016,pursuant to Rosenberg City Charter, and take action as necessary to direct staff. (Joyce Vasut, Executive Directorof Administrative Services) 

EXECUTIVE SUMMARYThis Agenda item provides an opportunity for the City Council to discuss the FY2017 Proposed Budget and makerecommendations to staff.

Reviewed By: N/A Approved for Submittal: John Maresh, Interim City Manager  

FISCAL IMPACT

Annualized Dollars: N/A Budgeted: N/ASource of Funds: N/A 

AttachmentsWorkshop Schedule 

FY2017 BUDGET WORKSHOP Page 1 of 2

 

FY2017 BUDGET WORKSHOP SATURDAY, AUGUST 06, 2016

8:15 A.M.  

Time Department Page Staff

1.

8:15 a.m. General Fund Overview 2-1

Vasut

2. 8:30 a.m. Mayor and City Council 2-14 Cernosek

3. 8:40 a.m. City Manager 2-25 Maresh

4.

8:45 a.m. Human Resources 2-29 Remington

5.

6.

7.

8:55 a.m.

9:00 a.m.

9:10 a.m.

Economic Development Technology Communications

2-34

2-39

2-43

Malik

Trevino

Pavlovich

8. 9:20 a.m. City Secretary 2-47 Cernosek

9. 9:25 a.m. Finance 2-51 Vasut

10. 9:35 a.m. Municipal Court 2-55 Hayes

11. 9:40 a.m. City Attorney/City Prosecutor 2-59 Vasut

12. 9:45 a.m. General Government 2-63 Vasut

13. 9:55 a.m. Building Maintenance

2-67 Patterson

14. 10:00 a.m. Break

15. 10:15 a.m. Planning 2-73 Tanner

16. 10:25 a.m. Engineering 2-77 Maresh

17. 10:30 a.m. Code Enforcement 2-79 Palmer

18. 10:40 a.m. Health 2-83 Palmer

19. 10:55 a.m. a) Parks and Recreation b) Special Events

2-86 2-91

McCarthy

20. 11:05 a.m. a) Police b) Emergency Management c) School Resource Officers

2-95 2-101 2-107

Warren

21. 11:20 a.m. Animal Control 2-103 McAnally

22. 11:30 a.m.

a) Fire b) Fire Marshal

2-110 2-116

Goates

23. 11:40 a.m. a) Public Works b) Street Lighting and Signals

2-119 2-127

Maresh

FY2017 BUDGET WORKSHOP Page 2 of 2

 

Time Department Page Staff

24.

25.

11:50 a.m.

11:55 a.m.

Fleet Solid Waste

2-129

2-133

Martinez

Vasut

26. 12:00 p.m. LUNCH

- -

27. 12:30 p.m. Special Revenue Funds Overview a) Hotel/Motel

a. Main Street Program b. Marketing/Tourism

b) Municipal Court Technology Fund c) Beautification Fund d) Law Enforcement Fund e) Community Development Block Grant f) Police Asset Forfeiture g) Park Land Dedication Fund h) Juvenile Case Manager Fund i) Child Safety Fund j) Municipal Court Building Security Fund k) MUD Fire Services l) Police Federal Forfeiture Fund m) PEG Capital Fund n) Fire Station No. 3 Operating

3-1 3-4 3-8 3-10

3-12 3-15 3-18 3-21 3-24 3-27 3-30 3-33 3-36 3-39 3-42 3-45 3-48

Vasut

Vasut Kelleher

Malik Hayes Malik

Warren Vasut

Warren McCarthy

Hayes Hayes Hayes Goates Warren

Pavlovich Goates

28. 1:00 p.m. Enterprise Funds Overview Water/Wastewater Fund a) W/WW - Customer Service b) W/WW - Administration c) W/WW – Water Production d) W/WW – Water Distribution e) W/WW – Wastewater Collection f) W/WW – W/W Treatment g) W/WW – Reclaimed Water h) Non-Departmental

Civic Center Fund

5-1

5-9 5-13 5-17 5-20 5-24 5-27 5-29 5-31

5-46

Vasut

Vasut Maresh

Vasut

Kagy

29. 1:30 p.m. Internal Service Funds Overview a) Insurance Fund b) Fleet Replacement Fund c) Technology Fund

7-1 7-3 7-6 7-10

Vasut Vasut

Martinez Trevino

30. 1:45 p.m. Rosenberg Development Corp. 8-1 Malik

 

City Council Workshop Meeting ITEM # 3. Meeting Date: 08/06/2016  

Item Title: Adjournment

ITEM/MOTIONAdjournment.