FY2018 BUDGET PRESENTATION - August 8, 2017 - A Community Transformation Concept art of Baylor Scott & White Lake Point Medical Center expansion ...
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FY2018 BUDGET PRESENTATION August 8, 2017 A Community Transformation Concept art of Baylor Scott & White Lake Point Medical Center expansion 1
Rowlett – A Great Place to Live!
Rowlett takes its
responsibilities to its
citizens seriously!
2
We’re Growing!
Master planned 262 acre mixed use site
under City’s Form Based Code
8-10 year planned build out of site
1.75 million square feet of commercial
space and 3000 residential units
Significant future property and sales tax
revenue
3
Development is Here!
Known and Planned Development
Projects
All Storage Self Storage
Bayside (>$900M)
Beverage Depot
Bullitt Multisport Complex
Canterbury Cove
Evergreen Senior Living
Harmony Phase 2 ($20M)
Homestead @ Liberty Grove($157M)
Kayak Crossing
LPMC Expansion ($35M)
Retail (Chipotle/Pie Five/El Pollo
$800M-$950M in private investment over five-
Loco/Starbucks, etc) ($25M)
Rowlett Assisted Living seven years depending upon the speed of
Terra Lago ($40M) development!
The Orchard
Village of Rowlett ($25M) This potentially represents $10M-$15M in
Vineyards
property tax revenues when taking tax rebates
into account!
4
In 2011, Rowlett adopted its
comprehensive land use plan. The
plan was designed to create a vision
to make Rowlett “a community with
diverse lifestyle choices for living,
working, playing and learning”.
5
Comprehensive
Land Use Plan
In just five years, we have major
projects in every quadrant of the City
and nearly every strategically defined
opportunity area.
Rowlett is “realizing” its vision as a
“community with diverse lifestyle
choices”.
What an amazing time to live in
Rowlett.
6
Rowlett – A Community Transformation!
7
City has issued 2,044 building permits with a construction value of $59.7 million!
That’s a lot of building! 8
We are very proud of the
strategic partnerships we
have in Rowlett!
Our sincerest thanks to
the organizations that
help make us
Rowlett Strong!
Community
Churches
9
Good News!
Even with a 9.7% increase in assessed valuation, last
year was not the right year to reduce the tax rate. We
needed to reach the point where we can fund
approximately $10.5 million annually for streets and
alleys and we needed time to have some of the new
development hit the tax rolls.
However, FY2018 is a good place in our history to
make the first cut in the tax rate. We expect to receive
another 11.4% increase in assessed tax values “and”
many of the projects that were about to start last year
have now started and are going vertical. This is the
right year to have this conversation.
The FY2018 Proposed Budget includes a recommendation to reduce the property
tax rate by one cent, from $0.787173 to $0.777173 per $100 in taxable value!
10Projected Taxable Value
(net of TIRZ and Tax Ceilings)
Description FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022
Projected Taxable Value (billions) $3.58 $3.93 $4.40 $4.88 $5.39 $5.98 $6.48
Value Net of TIRZ and Tax Ceilings
(billions)
$3.20 $3.47 $3.82 $4.19 $4.47 $4.92 $5.34
% Annual Increase n/a 8.4% 10.1% 9.7% 6.7% 10.1% 8.5%
Projected Taxable Value Change –
(net of TIRZ and Tax Ceilings) (FY2016-FY2022) Bayside &
Homestead Property Tax
80.0%
70.0% Springfield
Homestead, Terra Revenues have
Lago, Harmony &
60.0%
Commons,
Lakehill &
LPMC increased primarily
50.0% Waters Edge due to reassessed
40.0% values to existing
30.0% properties. New
20.0%
construction will
10.0%
0.0%
begin driving revenue
2016 2017 2018 2019 2020 2021 2022 in future years.
Cumulative Change
11What does this mean to Rowlett?
Over time, this level of growth:
• provides a sufficient income stream to
meet existing needs and new
community amenities while building a
more sustainable future; and
• diversifies the housing stock which will
help maintain property values in future
Alley improvements recessions and types of markets; and
• provides the ability to provide
additional dollars for infrastructure and
to issue more bonds in the future
without increasing the tax rate; and
• provides a sufficient income stream to
seriously consider reducing the property
tax rate in the future; and
Housing diversity • provides the opportunity to reduce
unsold water under the North Texas
Municipal Water Districts (NTMWD)
take-or-pay agreement and, perhaps
even reduce the rates and fees charged
to our customers in the future.
12
Park improvementsProperty Tax Cost per Day
Rowlett Citizens are getting a GREAT value for their investment!
And they DESERVE it!
$1,554 in City 24 Hours a Day
Taxes Paid on a
$200k Home ÷ 7 Days a Week
365 Days a Year
That’s only $4.26 per day for
Total Property Tax Cost!
13FY2018 Daily Property Tax Cost -
Operations = $3.02
Planning &
Development Infrastructure Seriously, only
$0.25 Services $0.47 $3.02?
Yes, $3.02 in
Public Safety property taxes
Quality of Life $1.53 supports the
$0.38 operations of all
General Fund
services!
Debt $1.24
Good
Governance
$0.36
Other $0.03
Uses a taxable home value in
Rowlett of $200,000. 14FY2018 Daily Property Tax Cost - A Day in the Life of a
Total = $4.26 Rowlett Resident
Home Security $1.93
Cell Phone $2.67
Planning &
Development Infrastructure Caffe Latte $3.95
$0.25 Services $0.47 McDonalds Big
$6.48
Mac Meal
Cable Bill $8.46
Public Safety
Electric Bill $8.70
Quality of Life $1.53
$0.38 Auto Loan
$9.13
(Camry LE)
Movie for One $12.11
When adding in
Debt $1.24
Good annual debt service,
Governance your property taxes
$0.36 cost you a little
more than the price
of a Starbucks
Other $0.03 Coffee!
Uses a taxable home value in
Rowlett of $200,000. 15Police & Fire Response
Police
Priority One First Second Third
Calls Quarter Quarter Quarter
Calls 305 269 303
Avg Response
4:13 4:15 4:20
Time (minutes)
Fire
Priority One First Second Third
Calls Quarter Quarter Quarter
Calls 946 973 992
Avg Response
4:36 4:35 4:31
Time (minutes) 911 Dispatch
First Second Third
Call Volume
Quarter Quarter Quarter
Total Calls 5,426 5,195 5,786
We’re there when you need us!
Avg Answer
4.1 3.6 3.5
Time (seconds)
16High Standards Means Excellence!
Rowlett employees are our most valuable assets. Without them, we cannot accomplish our
mission and make a difference in the lives of our citizens. We don’t build or sell merchandise.
Instead, we serve. That is our product! That is our purpose!
17Rowlett Employees
Employees per 1000 Population
for Comparative Cities
20.00
17.98
18.00 Rowlett is incredibly lean. This chart shows that
16.00 Rowlett is about 100 employees below the average
of other comparable cities.
14.00 13.38
12.23
12.00
9.88 10.15
10.00 9.35
8.82 9.03 9.08
7.93 8.05 8.11 8.31
8.00 7.39 7.50 7.70 7.78 7.83
6.78 6.80 7.04
6.11 6.20 6.27 6.32 6.37
6.00
4.00
2.00
0.00
Emp per 1000 Pop Median
18Rowlett Employees
Residents per Employee
for Comparative Cities
250
225 Looking at this another way, Rowlett serves nearly
150 residents per employee, nearly 25 more
200
residents than the average of comparable cities.
175 164
157 158 159 161
142
147 147
150
133 135
126 128 128 130
120 123 124
125 113
107 110 111
99 101
100
82
75
75
56
50
25
0
Residents per Emp Median
19Employee Pay Market Comparison
Municipal Market Mean Comparison April 2017
25.0%
Rowlett employees are paid
near the bottom of the
20.0% market for comparative 19.10% 19.34%
cities. The truth is that raises
16.60%
provided over the past three 15.90%
15.17%
15.0% years have not kept up with
the market. 13.42%
11.43% 11.60%
10.22%
10.0% 9.36%
8.48%
5.58% 5.72%
5.11%
5.0%
1.33%
0.00%
0.0%
-0.97%
-1.50%
-2.59%
-5.0%
2021
Cost of Turnover
In the past two years,
Rowlett has lost 124
employees. At $4,129 per
employee, the cost of
recruiting is about
$512,000. More
importantly, the lost
productivity during the
hiring period (i.e. average
of 42 days) without those
employees is 5,208 days,
the equivalent of 14.3 full-
time employees.
n=# of respondents
Even just the cost of hiring can be expensive. The estimate for the hiring process from the
Society for Human Resources Management (SHRM) is an average of 42 days at a cost of
$4,129 per hire. However, this cost does not include the loss of institutional knowledge or
the time to outfit and train a new employee. A police officer alone can take 9-12 months
before they are able to patrol independently. 22Employee Pay Implementation FY2018
Pay
Current New
Range Adjustment Cost Benefits Total
Variance Variance
Group
I. Market adjustment
on 10/1
Police II. Annual step increase
$492,536 $85,545 $578,081 -9.98% -0.62%
on anniversary date
I. Market adjustment
on 10/1
Fire II. Annual step increase
$363,427 $65,903 $429,330 -7.57% -0.40%
on anniversary date
I. Market minimum
adjustment on 10/1
II. 3% Increase for all
Open
open range $630,157 $104,668 $734,825 -9.25% 0.12%
Range employees on 10/1
III. Compression
adjustment 1%-5%
The City evaluated several options based on the Overall New
Total Cost
market and established a strategy to set employee Variance
pay at or near the mean average of the market. $1,742, 235 -0.30% 23Capital Improvements Planning
Title Amount
Roads $TBD
Alleys TBD
Parks TBD
2018
Facilities TBD
Total Amount Needed As much as $250,000,000
The City of Rowlett has created a permanent board of citizens, the The CIAB is in the process of
Community Investment Advisory Board (CIAB), to assess, evaluate identifying, reviewing, prioritizing
and make recommendations on strategic infrastructure and capital projects for:
improvement priorities. • Potential 2018 Bond Election
• CIP Recommendations (5 year
This is a tough job. As much as $250M in needs may be identified. planning process)
The good news is that the current debt capacity without a tax • Budget planning
increase may be able to yield $70M-75M in the next three years – The CIAB has established:
BUT, for perspective, it would take over 30 cents on the current tax • Prioritization and ranking
rate to bond the entire $250M! process for projects
• Reporting processes for
projects
24CIP Bonding Capacity
City of Rowlett
Current Tax Related Debt Service and Future Bonding Capacity
$10,000,000
The City currently has a
$9,000,000 three year strategy for
general obligation bond
$8,000,000 elections. The first one
$7,000,000
was in 2015 and the
next one is scheduled
$6,000,000 for 2018.
$5,000,000 Curve includes From Declining Debt Because the City is
new bonds growing and did not
$4,000,000
issued from issue much debt
May 2015
$3,000,000 between the years of
bond election
over the past 2005-2015, the City has
$2,000,000
two years. considerable capacity to
$1,000,000 issue debt in the future
without impacting the
$0 tax rate.
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
Current Tax Supported Debt New Issue Series 2017 Future Capacity
25CIP Bonding Capacity
City of Rowlett
Current Tax Related Debt Service and Future Bonding Capacity
$18,000,000 Additional tax value
from future
$16,000,000
development also
$14,000,000 adds bonding
capacity in future
$12,000,000
years.
$10,000,000
From Future Growth
Together, this means
$8,000,000
that Rowlett has the
$6,000,000 ability to seriously
From Declining Debt address
$4,000,000
infrastructure and
$2,000,000 facility needs in the
future while keeping
$0
the bond tax rate
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
steady.
Current Tax Supported Debt New Issue Series 2017
Future Capacity Growth Capacity
26CIP Bonding Capacity
City of Rowlett
Hypothetical Leveraged Bond Packages
$18,000,000
$16,000,000 This bonding capacity
can be leveraged in
$14,000,000 three-year
$12,000,000
increments to
maximize our
$10,000,000 opportunities.
$8,000,000
Again, this provides
$6,000,000 significant dollars for
streets, alleys,
$4,000,000
neighborhood
$2,000,000
improvements and
other needs.
$0
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
Current Tax Supported Debt New Issue Series 2017 New¹ New² New³ New⁴
27So, financially speaking, have things
changed for the better?
Absolutely!
The level of growth will bring new challenges;
however, it also provides significant opportunities
to address existing needs over time.
28Bayside and Public Safety
Bayside is a real boon for
the City of Rowlett and
will generate nearly $8.2
million in annual tax
revenues upon full build
out (10 years).
The two most
significantly impacted
departments will be
Police and Fire.
The type and nature of
the building structures,
the sheer density and
ultimately, entertainment
venues, will require a
significant presence from
both agencies.
29Bayside and Public Safety
Points of Interest:
Resort: 500 rooms
Marina: 1,000 slips
Luxury Multi-Family Units: 1,718 units
Condo Tower: 20-22 stories
Condos and Townhomes: 350 units
Crystal Lagoon: 8 Acres
Convention Center: 100,000 sq ft
• This area will be densely populated.
• Interstate 30 effects response.
• Developer is making space for a new
fire station as part of a parking
garage.
• Location of Fire Station could have a
direct impact on ISO Rating
30Bayside and Public Safety
Ultimately, this means a new fire station
and additional police presence.
A new fire station will cost nearly $3.0M
and the annual recurring costs could
range from $1.8M to $2.8M depending
upon whether or not we have a single or
dual company house.
In addition, early estimates indicate we
could need around twelve new police
officers.
We do not yet know the optimal setup to
serve Bayside. Its character, density, and
amenities are truly unique and requires
the City to continue its evaluation to
determine the right response.
31What other Strategies do we need to be
talking about?
• Rowlett has 18 different facilities resulting in administrative and
operational duties are being spread out in multiple locations.
• Consolidating such facilities would mean one-stop shopping for our
Facilities customers and allow Rowlett to take advantage of the economies of scale
to lower the cost of its footprint. A permanent home for the library will
also need to be found by 2023.
• Rowlett’s underground utilities have undergone four years of drought.
Infrastructure Major improvements to water and sewer lines, lift stations and pump
stations are necessary for the foreseeable future.
(Utilities)
• Funds are needed for capital maintenance as well as improvements.
• Rowlett maintains 537 miles of streets and 105 miles of alleys with an
Infrastructure average PCI of 77.
(Streets and Alleys) • Funds are needed for capital maintenance as well as improvements.
32What other Strategies do we need to be
talking about?
• Rowlett has 18 different facilities
resulting in administrative and
operational duties are being
spread out in multiple locations.
• Consolidating such facilities would
mean one-stop shopping for our
Facilities customers and allow Rowlett to
take advantage of the economies
of scale to lower the cost of its
footprint. A permanent home for
the library will also need to be
found by 2023.
The time has come to start
talking about a new municipal
service center.
33What other Strategies do we need to be
talking about?
• Rowlett’s underground utilities
have undergone four years of
drought. Major improvements
to water and sewer lines, lift
Infrastructure stations and pump stations are
(Utilities) necessary for the foreseeable
future.
• Funds are needed for capital
maintenance as well as
improvements.
Rowlett maintains 25 sewer lift stations and 11
water towers/ground storage tanks which holds
19.2 million gallons of water.
In addition, the City maintains 260 miles of water
lines and 245 miles of sewer pipe – nearly
enough to reach from Dallas, TX to Mobile, AL.
34What other Strategies do we need to be
talking about?
• Rowlett maintains 537 miles of
Infrastructure streets and 105 miles of alleys
with an average PCI of 77.
(Streets and • Funds are needed for capital
Alleys) maintenance as well as
improvements.
Rowlett has an average annual Pavement
Condition Index (PCI) of 77. The City needs to
spend about $10.5 million a year to maintain a 77
PCI.
35Rowlett
– A City
with a
Future!
36Opportunities for Public Engagement
Date Meeting
August 8 Proposed Budget submitted to the City Council
1st Public Hearing on Proposed Budget
August 15
1st Public Hearing on Tax Rate
August 17 City Council Budget Work Session
2nd Public Hearing on Tax Rate
August 29
City Council Budget Work Session
2nd Public Hearing on Proposed Budget
September 5
Adoption of the Budget and Tax Rate
• A physical copy of the City Manager’s FY2018 Proposed Budget is available to review at the
City Secretary’s Office (4000 Main Street) and Rowlett Public Library (5702 Rowlett Road).
• A digital copy is available on the City’s website at Rowlett.com.
37Opportunities for Public Engagement Communicating our message is very important. A video entitled The Value of City Services is available on the City’s website at www.Rowlett.com or our Facebook page at City of Rowlett, Texas Government. 38
CITIZENS OF ROWLETT CITIZENS OF ROWLETT
CITY OF ORGANIZATION
ROWLETT CHART
MAYOR & CITY
COUNCIL
City Secretary BRIAN City Attorney
CITY MANAGER
Laura FUNDERBURK David
Hallmark Berman
Economic Fire Assistant Parks & Human
Finance Police Library Public Works Development IT
Development City Recreation Resources
Director Chief Chief Director Director Director Director Director Director
Director Manager
Kim Mike Jim Shawn Vacant
Wilson Brodnax Proce Poe
Jim Neil Kathy Angela Marc Richard
Grabenhorst Howard Freiheit Smith Kurbansade 39
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