>> Mayor Leffingwell: Good
morning, a quorum is present
so we'll bring this council
meeting to order wednesday,
august 1, 2012, the time is
9:13 a.m.

We're meeting in the board
commission room austin city
hall, austin, texas.

One item, the presentation of
the city's proposed budget for
fiscal year 2012-2013.

And to start off, I'll turn it
over to the city manager to
make a brief introduction.

>> Thank you, mayor.

Good morning, councilmembers.

I'm pleased to present to you
1 billion all funds

Structurally sound.

Values our employees for their
hard work and continues to
make prudent investments, and
best managed in our community.

The budget includes a proposed
18% increase in tax
including increases for our

These increases will cost a
typical citizen a possible $18
a month.

I don't take the increases
lightly, they are absolutely
necessary if they are to
continue to take the types of
investments in our community
to make austin the most
livable city in the nation.

As you know, the austin story
is very different from the
story of most other

Cities and counties across the
nation continue to struggle in
the wake of the great

Many have found it necessary
to slash their workforces and
critical services to keep the
strained budgets and ballots
with falling revenues.

For others, remaining fiscally
solvent has required more
drastic measures.

In just the past two weeks,
two california cities, san
bernardino and stockton, have
each filed for chapter 9
bankruptcy protection and
unfortunately, more are likely
to follow.

Austin, by way of comparison,
is flourishing.

During the past 12 months,
nearly 23,000 jobs have been
created in the region and our
local unemployment rate has
while at the national level,
unemployment continues to
hover above 8%.

Other bright spots for the
city include one of the most
stable housing markets in the
nation and a revitalized
development sector.

You already are aware that two
new convention center hotels
are on the way to downtown
austin and I am likewise happy
to report that the number of
residential and commercial
building applications are up
16% and 36% respectively from
the previous year.

The success we are seeing
today is due in no small part
to the tough fiscal decisions
that were made by this council
during the past three budget

Under your leadership, the
city has established a new
secondary low-cost pension
plan for new civilian hires,
renegotiated labor contracts
and more costs.

We postponed civilian studies
for two years.

We eliminated vacant positions
and repurposed other positions
to hire priority services.

5 billion from
nonpublic safety service areas
and improved tax fee increases
in order to protect or enhance
our most essential services.

As a result of the efforts,
the budget before you today is
balanced and -- balanced and
without any service
reductions, and also without a
single employee layoff,
despite continued cuts in
state and federal grant funds.

The budget includes funding
for a number of key
enhancements, most notably in
the areas of public safety,
park, recreation, planning and
development review, code
compliance, resource recovery,
and library services.

And for the third consecutive
year, we're recommending a tax
rate that is below the
state-defined rolled back

One thing I want to make very
clear this morning is that we
must continue to place equally
high importance on value and
affordability for our
taxpayers as we do on
providing exemplary customer
service in meeting growing
service expectations in our
very diverse community.

When I came to austin, i
established as my goal having
austin known and recognized as
one of the best managed cities
in the country.

I also stated we would never
declare we have reached that
goal, but would rather let
others do that for us.

While nearly five years later,
people are starting to talk.

For two years running, the
business journal has rated
austin the number one place to
start a small business.

"Forbes" magazine has ranked
us as the number one city for

Parenting magazine lists us as
the number two place to raise
a family.

And in our most recent
community survey, overall
satisfaction with city
services rated number one
among 13 comparable cities
with populations above 500,000
leading the survey team to
declare that, and I quote, the
city of austin is setting the
standard for performance among
large u.s. cities, end quote.

While these accolades are
certainly nice to receive, we
are not ultimately what best
managed is all about.

Best managed is not about the
number of top ten lists we are
on, or even being ranked
number one, the number one
municipal service provider in
a national survey.

Instead, it's about you, it's
about all of us.

It's about the 12,000 men and
women that comprise the city
of austin workforce doing all
we can, each and every day, to
make austin the most livable
city in the country.

As we move forward as an
organization, our greatest
challenge, one that is
incumbent upon all of us, i
think, will be to not rest on
our laurels of past success,
but, instead, to continually
raise the bar on what's

Mayor and council by way of
introduction for purposes of
balance, I want to take a
moment to acknowledge what i
can only describe as our
stellar financial services
team which, as you know, is
headed by our chief financial
officer, elaine hart.

Our deputy city manager, greg
cannaly who's somewhere here
in the room, insuspect.

And I'm pleased to note also
the recently promoted deputy

We want to acknowledge them
for their stellar work as well
as the entire staff of the
financial services department.

Of course, their efforts are
supported by the rest of the
organization so I also want to
acknowledge my office, my
deputy city manager of the
All of the department heads
and their financial staff as

All of those individuals come
together to produce one of the
most important projects that
we provide to the council and
the community on an annual

And that is this proposed plan
that is before you today.

So I simply want to start
today by offering my sincere
thanks to all of you for --
for your hard work, not just
for this budget, but for what
you do each and every day.

With that, mayor, with your
permission, I believe the
staff is prepared to present
the details of the budget.

>> Thank you, city manager.

And we'll go ahead.

First I want to also
acknowledge and congratulate

I think the record of the city
of austin in the last few
years is one that's envied
over the entire country.

I think the record is a
stellar one.

Turn it over to you.

>> Thank you, city manager,

Mayor, mayor pro tem, city
councilmembers, it's a
pleasure to present the
proposed budget for the fiscal
'13 year.

As the manager said is here
and is going to assist in the

I also would like to make my
thanks to all of the folks
involved, citizens, stake
holders, all of the staff and
management, and city manager
in preparing the budget.

It's been a lengthy process
and this is the culmination of
all of that hard work.

I mentioned stake holders,
stake holder input is really a
chief role in our budget
decision-making process.

The past three years we've
really set the bar higher and
higher on that stake holder
input process.

And this year, again, we've
had an inclusive and
transparent process.

We had a council policy
retreat beginning in february.

We had in april we had in may
we had over 24 hours of
financial forecast work

Following that, we had 15
public meetings at the board
and commission to gain citizen
input and board input on the
proposed budget.

We've also had other methods
for on-line input.

We started a new citizen
budget question and comment
section this year, much like
the council budget in question

We continued our sneak up
budget forum.

We had a budget priority

And we've had extensive
documentation that's been
available on-line to all of
the folks in the community.

We've posed the results of our
citizen survey that was
released in november, our
horizon issues update was
released in march.

We've had an annual
performance report and city
dashboard on our performance
measures issued in the march
time frame as well.

We've published an unmet
service needs and demands
report prior to the completion
of the proposed budget so we
can gain input from the boards
and commissions and citizens,
and we've had a menu of
potential budget reductions
that are available for

As the manager said, we are
proposing a budget for the
general fund that is
structurally balanced.

That being said, our
projective revenues are
sufficient to cover our
projected expenditures.

We did balance this budget
without service reductions or
staff layoffs.

And we did include funding for
some key service enhancements.

We were able to do this
primarily because of the
decisive actions that were
taken over the last three
budget years in response to
the downturn in the economy.

Over the last three years,
we've cut 178 vacant positions
citywide, repurposes other
positions to other priority
needs, renegotiated the labor
contracts which lowered our
staff costs, we eliminated
wage increases in 2010 and
deferred market studies for
two years, thus lowering our
overall costs and long-term

We balance the cuts with
various fee and ratings as
they were needed to avoid

The general fund budget is
structurally balanced with a
2.2% increase in the tax rate.

That is below the rollback
calculation for the third
consecutive year.

3-cent increase
projected over our five-year
planning horizon and that will
maintain a balanced budget
over that five-year period.

67 month
increase for the median

This budget also values our
employees as the manager said,
we have over 12,000 employees.

This budget includes a
proposed 3% salary increase
for all employees.

It implements the full-year
costs of market studies that
were implemented in april of
2012 for civilian employees.

It increases our contributions
to our employee retirement

We have three retirement

1% Increase for sworn police.

A 1% increase for sworn fire
with an additional 1% plan for
september of 2013.

And finally a 2% increase for
civilian employees bringing
the total contribution of the
city to that system to 18%.

It's the final year of our
supplemental funding plan.

Originally we started out with
an 8% contribution level from
the city, 8% from the

Now we have a total of 26%
contribution level with 18%
funded by the city.

And I'm pleased to let you
know that for the first time
when we got the actuarial
evaluation from the employee
retirement system, first time
since 2001, the amitorization
period for the employee
retirement system is under 30
years which is very good.

We had an infinite funding
period previously.

So you can see these continued
investments have really paid
off for us.

This budget, again, has no
layoffs despite reductions in
our federal grants, 18
positions were transferred
from the grant funds to the
general fund.

And they'll be funded from
local sources.

How do we get to best managed?

We go down a path or a road.

It's a planned event.

Innovation is the way to get

Some of the examples are here
on the slide recently got
awards from the finance
officers association for

Excellence for transparency
for the austin finance on-line
website that was put in place
over a year ago.

We got awards from the state
comptroller's office for

Five years ago, this kind of
information was not available
to our citizens on-line.

We also implemented
innovations in our health care
plan to reduce our health care
increase projected for the
fiscal 13 budget to 3% well
below what it's been in the

The accelerate austin
initiative allowed us to reach
our payment goal being in fair
to excellent condition five
years ahead of schedule.

It also created jobs locally
and enabled us to reach our
goal earlier.

As the manager d, the
results are in.

Our customer survey performed
by the etc institute report
was released in november of

We were, again, beating the
national average in 41 of 46
benchmark service areas in the

26 Were better than the
national average on our
customer satisfaction, and 13%
were better than the national
average for value, for the --
for the taxes and fees paid.

Again, as the manager
mentioned, our challenge is
continuing to raise that bar.

Statistically significant
improvements were made of 21
of 83 service measures and
they were reported in the
november customer satisfaction

Today's presentation will
cover these items, our all
funds summary, our general
fund revenue detail.

Then we'll move to budget
highlights for the general
fund, our expenditures and
departmental plans.

Then we'll cover internal
service funds, those funds
provide services to other city

Our enterprise funds, which
are our funds to charge fees
and our more fee-based.

And then we will conclude with
our cross jurisdictional rate
analysis and the next steps.

The city is a unique municipal
operation including many, many
businesses in addition to the
general funds.

To name a few, we include
austin energy, the electric
service department.

Austin water, the water

We run an airport and also a
convention center.

We set up a series of separate
funds that account for each of
these activities separately to
provide transparency to the

The all funds summary and the
total budget for the city for

It's depicted in this slide
here, in the pie chart.

Of that, this -- this gives
you a broad overview of what
is included in the budget, the
green area on the left is
austin energy, which
represents 37%, the turquoise
in the upper right is 14%.

The general fund, the navy in
the bottom section of the
slide, and it represents 21%.

Those are the three largest
pieces of our budget.

Beyond that, internal services
or departments who serve other
city markets are 7%.

This is a summary of our
personnel changes for the

As I said, the term personnel
in the proposed budget is over

In this budget, we're
proposing 166.2 new positions.

Of that, 64 positions will be
in the general fund.

And that includes 22 new
police officers, four new
firefighters, and six new

Of the 22 for the austin
police department, 12 will be
911 call takers and
dispatchers that were
previously funded through

You see, we're eliminating
nine positions, those are
grant positions all vacant
that will be eliminated in
this budget.

The trafershows the shift of
the departments, there are
some grant funded positions
shifting to the police

And the net change citywide is
157.2 positions.

I want to note that the austin
convention center for the
third year has asked for no
The fourth consecutive year.

The additional staffing is
critical to our meeting our
service demands.

And programs.

This last slide is a summary
of our major rate and fee
increases across the city.

You will see the prior year,
the 12 or the current year
monthly rate in the left-hand
column to propose the
increases and rates.

In the middle column.

And the dollar change on a
monthly basis.

The total monthly cost is
08 for the typical rate
payer or taxpayer.

This includes the enterprise
funds and the property tax

For the property tax bill,
it's $1.67 of the.08.

The remaining of these fee
increases and rates are
proposed rates the council has
not approved yet.

These are for the typical rate

For that, I would like to turn
it over to ed who will go over
the general fund highlights.

>> Good morning, mayor, mayor
pro tem, members of the

I'm the deputy cso for the

It's been done by several
people, but I just can't not
do it myself which is to thank
a whole lot of people because
later today you'll receive a
1500 page two-volume budget

You've seen with the slides
we're doing today -- I think
the slides that we're doing
today are going to take us
over 400 slides of power point

Let's hope there's nothing
called death by powerpoint.

But the point is there's a
whole lot of work that goes
into this and there are a lot
of people to be thanked.

Probably 30 or 40 property
directors right now in the
bullpen or in the lobby ready
to run in if you have
questions of an operational
nature that are beyond our
ability to rep respond.

If you see bloodshot eyed
people walking around the
city, a good chance they're
financial people that work for
the city.

Thank all of them.

A number of departments have
started creating departmental
budget committees that meet on
a regular basis just to work
through a whole variety of
budget issues.

I want to thank all of those

The boards and commissions as
always, they've been very open
to making time on their busy
agendas to listen to the
budget staff come and talk to
us about budget matters and
take it seriously and a number
of them have provided input
back to council offices, i

And last, but certainly not
least, I want to thank the
roughly two dozen folks I have
up on the third floor that
work very, very hard to make
all of this possible and they
just do an excellent job and i
could not be prouder to be
part of a group of people than
I am to be part of the budget
office and that group.

I mentioned a couple of things
later today, we're going to
deliver the budget.

Last year it was the cow

Then the guitar budget.

This will be the cow budget.

I hope you like the cover.

We're going to be releasing
later today a summary of our
unmet needs.

We produced a list, I think
back in april, we provided a
list to council of what our
departments are brought
forward with the undermet
6 million of needs
they identified so putting
together a summary report to
remind you what all of the
unmet needs were and which
we've been able to find a way
to fund in this budget and
which are the ones we are not
able to fund.

So that will be a way for you
to quickly and transparentally
see what we've added to this
budget and we'll provide you
with the summary of community
engagement efforts and we will
also be posting for the
community and for whoever
wants to look at it this
presentation, both the power
point slides as well as the
video of the presentation.

So that will all be getting
released later today.

Taking a look at our general
fund budget.

Our sources of funds.

5 million is
what we're projecting for
fiscal year 2013.

The bulk of that coming from
property taxes, roughly 42% of

22% From sales taxes.

19% From our utility

And a little aside from all
our other funding sources.

A pie chart that looked
different than it did in
fiscal 2008 prior to the
economic downturn.

If you turn the dial back five
years, you see property taxes
of 31% of our total general
fund pie sales taxes following
a number of years of really
good sales.

We're up to 28% of our budget.

The utility transfers are at
about 21%.

And all our other sources were
at 20%.

So the pie has changed as the
economy has turned down sales
tax revenue have lagged.

The utility transfers have
dropped as a result of the
budgets and the other sources
remain stagnant.

We continue that in to fiscal
year '13.

2 million
of additional revenue.

That's over and above where we
estimate to end the year in
fiscal year '12.

$34 Million of that from
5 million
increase in sales tax

5 Million increase in
utility transfer.

That's all coming from the
water utility.

The transfers are staying flat
in '13.

And increase in the other
revenue category with most of
that coming from a revitalized
sector and a lot of activity
that we're seeing through the

So we're going to take
probably ten minutes and walk
you through some of the
details of each of the four
broad revenue categories.

First in regards to property
tax, our certified tax role
for fiscal year 2013 came in
4% higher than where it was
in 2012.

You can see the numbers up
6 billion tax base
9 billion of that
increase being new property

At a proposed tax rate of
29 cents per $100 of
taxable value, that generates
the tax revenue that I showed
you on the previous slide.

18 penny
increase in the tax rate that
we have of 48.11.

We're taking a liberty and
rounding that to 2.2.

It's a lot easier to say than

penny increase in the tax rate
that we currently have.

It comes out to be an impact
67 per month for the
owner of an immediatian value
home according to the travis
county appraisal district is
$178,000 in the current tax
role that was recently

You can see on the slide the
split between the proportion
of the tax rate that goes to
fund operations and
maintenance versus the portion
that goes to fund debt.

This gives you a little bit of
an historical context.

On our tax base in the city of
austin, this is about as good
a new story as you'll see.

I guarantee you you won't want
to see this slide for most
other cities across the

You can see pretty stable and
steady growth in the city's
tax base, pretty rapid growth
in the earlier part of the

A dip down in 2011, but then
we came right back.

It was a relatively minor dip.

We got most of the drop back
in 2012 and here in 2013, we
are now back above where our
tax base was at the peak of

So we've seen and been blessed
with a very stable property
tax base here in the city of

And just to give you some
context, if you look at the
next slide, it's -- it's truly
an amazing context when you
look at the change in average
home prices from what
typically is viewed as the
peak of the housing market in
2007 to the bottom of the
trough if you let me use that
word in 2011.

The city of austin is only one
of -- it's one of only two of
the largest municipalities
that saw an increase in
property values in that time.

And ours was the largest, a 5%
increase in average home
prices between 7 and 11 and
the drops we're seeing of
other municipalities are truly
staggering, in some cases,
40%, 50% in higher drops and
the average price of homes
which, of course, not only had
a huge impact on the
homeowners, but a huge impact
on the cities that rely on
that tax base in order to
provide services to their

Taking a look at sales tax, a
lot of arrows on this chart.

Show you the information in
two ways, 18 months of data
looking at the total sales tax

That's what you see on the top
line is our total monthly
change in sales tax

That includes a lot of white
noise, corrections, prior year
adjustments, auto year
adjustments always going on at
the state comptroller's

The bottom slide tries to
clean out that noise and look
at what are the current sales
that occurred and how do those
occur from month-to-month.

So they both provide useful
information and tell a similar
story that retail sales are
strong in the city.

We've seen really good growth
in the last 18 months.

It's a volatile sales tax --
sales tax is a volatile source
of revenue.

I like to put this slide up
once or twice a year to remind
folks of that that over the
last decade we saw two
significant recessionary
periods and a six-month span
where our sales tax changes
went negative, significantly

We can see the recession we
just came out of with 18
months of negative sales tax

And, you know, we're well out
of that now.

And we're doing well.

But it's always good to
caution everybody against
getting too aggressive on your
sales tax progressions because
they're generally not

You know?

It's a bit of a roller coaster

So you have to be prepared for
those downturns in the

When you put it on an annual
basis and sales tax return,
that's what the bars are
telling you, the change in
annual sales tax.

You can see the downturns that
occurred in the early part of
the deck caped.

And just recently, we went
back and took an average of
the last ten years of actual

So for 2001 and 2011 inclusive
of everything, what's been the
annual average increase in
sales tax revenue that came
out to be 2.3%.

So I drew a line on there of
3% so you can have a context
for how our current sales
taxes are doing and what our
projection for 2013 is
relative to that historical

So we have been seeing retail
sales ahead of that historical
growth rate.

We are projecting in 2012 a 5%
increase and in 2013, we're
increase which albeit higher
than what we saw for the
previous ten years, I earn --
certainly believe it's a
prudent sales ta budget for
us to build a budget on.

5% starts to get up
to 4%, 5%, or 6%, then you
have a concern with what's
going to happen in the next

How are we going to sustain
the ongoing commitments to
expenses that we made if our
sales tax turned negative

So those are our projections
for fiscal year '12 and '13.

I think we're certainly in
good shape to meet that fiscal
year '12 number of 5% year to

Eight payments into the fiscal
year were up 8%.

So we're certainly in really
good position to meet the 5%
target for fiscal year '12 so
I feel confident we'll be able
to achieve 3.5% in 2013.

But, again, not to beat a dead
horse, but caution against
going much beyond that because
of the ongoing sustainability
of it.

>> Thanks, mayor.

>> Spelman: Real quick on the
last two points you made.

5% For 2012 wasn't our
projected sales tax growth
when you presented the budget
last year, right?

>> No.

>> Spelman: Next year you're
projecting at 3.5%?

>> Yes.

>> Spelman: This year we're
on page for 8%?

>> Through eight payments, the
year-to-date growth is 8%
above last year.

>> Spelman: Thanks.

>> Mm-hmm.

Next source of revenue is the
general fund transfer from the
two utilities.

Yellow bars show austin power

The blue are from the water

The steady and stable growth

You can see interestingly the
percent of total fund revenues
it's been dropping.

We're at 24% of total fund
revenues of this source back
in fiscal year '97 and '13,
it's down to just shy of 19%.

We expect that to continue to
decline over the next five
by fiscal year 2017.

In regards to the revenue
source, the budget does
include the change to the
calculation for austin energy.

1% of gross

We've changed that with
council of just over 12% of
nonfuel revenues and
established a floor of $109
million until the new
calculation method gets us

So if we're going to switch
immediately to a pure
calculation using this new
approach, the transfer would
have dropped significantly in
fiscal year '13.

So council approved sending
$105 million and we'll stay
there until the 12% of nonfuel
revenue gets us above 105 and
we'll start floating it again.

We project $105 million for
the next two or three years.

Development revenue has
certainly rebounded.

We're projecting we're going
to end fiscal year '12 at
7 million and combined
result of the fee study that
council recently approved as
well as the approved
development activity.

We're continuing to see or
million in fiscal 2013.

You can see on the graphic
where that puts us relative to
the peak years of 2007 and

You can see where it puts us
relative to our historical

I would expect the future
trends to be a little higher
than the historical trends
given that council did just
approve a rate increase for
the fees to get the cost
recovery for the services
closer to the true cost of

A lot of bullets on this

It's there for your context.

But largely what it shows you
is all the other types of
revenue sources are staying

Charges for services, which is
our emergency medical
services, parks and rec,
health and human services, are
some of the largest categories

We're projecting those flat
from '12 to '13.

Franchise fees we're
projecting just a small
population growth-related
increase there from $33
million to $33.3 million.

Fees and penalties, largely
collected through our
municipal court for traffic
fines, parking violations,
court and arrest fees, we're
projecting those to remain

And in the interest earning
this is what we talked about a
lot in the past, it.

>>S a source of revenue that
used to bring in a little over
$8 million a year.

We're projecting that for
fiscal year '13 at $684,000
based upon an investment pool
yield of 0.41%.

Start on the expenditure side
of the budget.

The general fund budget as you
well know is predominantly
allocated to the safety fund
projects, police, fire,
emergency medical services
with 64% of the general fund
budget projected to go to the
areas in fiscal year 2013.

If you were to take a look
back and you provided the
slide for council in the past,
it's part of the financial

If you go back and look the
last eight, nine, ten years,
it's been consistent with the
services comprising 2/3 of the
general fund budget and the
remaining 1/3 going to fund
the community service
department's planning and
development review, municipal
court, and then the transfers
and other requirements in
support of our support service
functions and community --
communications and technology
management services.

Now with the budget changing
from fiscal year '12 to '13,
where are the increases

Police and fire are the two
largest departments by a long

So not surprising that the
largest dollar increases are
occurring in the large
departments with the largest
built-in cost drivers related
to employee wage increases,
health insurance, not a
surprise that the largest
dollar increase is occurring

I think the more interesting
story on this slide really is
where the percentage increases
are occurring and you can see
increase occurring in health
increase in planning and
development review, and an
4% in our library

And I have a few slides
following this just to give
you a few tidbits, highlights
of what's driving those
changes and then later in
august, we have our general
fund departments and
enterprise departments will be
coming back to council and
give you a whole slew of more
details about the changes in
their budgets.

So some of those general fund
highlights are downtown austin
community court.

We're proposing to add two new
case managers that we think
will enhance services to
repeat offenders.

Both by serving offenders who
appear in court and outreach
and engagement activities to
help those offenders before
they're brought to court.

And our animal services
department for fiscal year
2013, we're establishing that
as a stand-alone office.

I need to correct myself.

It's not a department we're
going to be establishing this
as a stand-alone animal
services office.

We do have funding in the
budget for animal services for
the operation of tlac as an
overflow facility and
converting a halftime vet to
fulltime to help with the
increased animal population
they're serving at the new

And health and human services
earlier this year, the city
council approved continually
four-year animal funding for


the main interlocal agreement
that we have with atcic.

7 million in the
budget to provide annual
funding for that critical

million of social service
programs, basic needs programs
that have previously been in
the sustainability.

What we're doing is we're
transferring some of those
programs back into the health
and human services
department's budget, which
into the general fund budget
which effectively shifts costs
that had previously been
funded by enterprise
departments because the
sustainability fund was funded
by transfers of the water
utility company and the
drainage utility.

We shift costs from the
enterprise operations to the
general fund and it's part of
our longer-termed strategy for
trying to better align the
services with the most
appropriate funding source
that we have in the city.

So that's a significant change
for proposing for fiscal year

>> Tovo: I want to better
understand that.

In effect the enterprise
services that have been doing
the funding, the programs that
do the sustainability fund are
no longer contributing to the
support of the programs.

Now they're going to be funded
entirely through the general

>> That's where we're heading.

But not getting through in

It's about $6 million that
flows into the sustainability
fund, the bulk of it comes
from the austin water utility,
resource recovery pitches in a
fair amount and the remainder
came from transfer from the
drainage utility and the
transportation fund.

And this year's budget, we
would be zeroing out,
eliminating the transfer from
the transportation fund and
the drainage fund and we're
reducing the transfer that
normally would come in from
the water utility.

But, again, we're not
affecting the program.

What we're proposing to do is
take some of the programs that
are truly social
service-related programs and


putting them to the health and
human services department
where we think they belong so
it provides an increasing cost
for the general fund.

A reduction in cost in the
enterprise operations.

And it also -- we get to it a
little bit, it frees us up a
lit built to allocate
additional sustainability
funds to the health department
which was in need because of
the loss of federal grant

>> Maybe I can submit some of
the questions in the q&a

But is there a council
resolution or some policy
direction that I missed before
I got here that is guiding
these shifts?

>> No, no council policy.

The policy is set.

That's the longer term
strategy is to move away from
the sustainability as a source
of funding for the housing
programs, the social service
programs and to be shifting
those costs back to the
general fund.

>> I suppose the general
fund -- that's a strategy.

My concern is that while these
programs may not be impacted,
others might be because the
money has got to come from

What will the sustainability
fund primarily be supporting?

What kinds of -- I can make a
case that housing and other
needs are sustaining a healthy

What's the primary focus will
this sustainability fund

>> The primary focus of it has
been and continues to be in
the '13 budget funding.

Neighborhood housing programs,
it's a key source of local
funding for them.

It also funds a number of
social service contracts,
right now it's focused on the
basic needs contracts.

Not all of the funding to


basic needs.

Just an additional source of

That that is what we're going
to continue to use it for in

Staff agrees with the nature
of those programs.

Just trying to shift the
funding of those programs to
the general fund where we
think it's really a -- a
closer nexus between the
service and the mission of the
health department than there
is between those important
services and the mission of
some of our utility functions.

>> So over the long run, would
the end goal be that the
social -- the basic needs
social service programs all be
shifted out of the sustainable
sustainability fund and the
health and human services
budget and then the
sustainability fund would be
used primarily for
neighborhood housing?

>> I think even -- I think
that would be our transition
and then at some point I would
certainly even recommend that
the housing department to the
extent it needs local funds if
the local funds come from the
general fund as opposed to
enterprise operations and
enterprise operation dollars
be left for things that are of
more of a true enterprise

>> Thanks for that

>> And -- and I would just
add, although -- while there's
not specifically policy
direction from the council
here, it's been a lot of
discussion about taking money
out of the utility silos and
funneling it to basically
unrelated purposes.

And that -- we had a lot of
discussion about the electric
utility doing that.

We also, I know I've raised
that question several times
with regard to the water

And I do think -- I don't want
to get into the discussion, i
want to let you finish your
presentation, but just
speaking for myself, I do
think that's the direction we
need to be going.

>> Morrison: One quick

I wonder if staff could help
us find some documentation
about when the sustainability
fund was first created and the
discussion around that or the



That would be helpful to make
sure we understand the

>> We can do that.

I think it was in the early
That information to you.

>> Morrison: Great, thank

Wrapping up health and human
services, three positions
funded by grant funds, a
public health nurse,
government health manager.

All are important positions
but in reduction in grant
funds we need to shift the
positions from the grant fund
to the general fund.

We're doing that in the fiscal
'13 budget.

Then the council policy
retreat, the council asked us
to look for ways to continue
funding the youth programs
that are currently funded out
of the hollywood neighborhood

In 2012, some of the programs
refunded were youth leadership
development with the girl

We gave money to put there.

Funds for an afterschool dance
program and also for after
school art programs.

These aren't ongoing
commitments, these aren't the
types of programs where every
year we give dollars to the
same agencies but they're the
same agencies we funded from
the good neighbor programs.

We looked through the last ten
years and the average amount
of programs that went to those
activities was $95,000.

We're recommending to include
$95,000 in the health and
human services budget to
continue to fund those types
of community events in the
wake of the holly good
neighborhood program ending.

The library system.

They've seen significant
reductions in staffing in the
last decade.

This restores some of those
positions and will help them
to meet the growing demand for
library services they're

Establishing a budget of
$150,000 for their temporary

They rely heavily on temporary
staff to keep the doors of the
libraries open.

They've never had a budget for

They robbed peter to pay paul,
so to speak, to find funding
in other areas of their budget
to fund the temporary staff.

That would give them a
dedicated budget to hire temps
and keep the doors open and
provide services.

We're including an increase of
$138,000 to the materials in
cataloging budget and the
additional two custodial
positions to meet the growing
facility needs of our library.

In our parks department, we
have $652,000 that will be an
increase in preventive
maintenance contracts.

This will provide a whole
variety of facility
maintenance services including
inspections, fire devices,
fire protection systems and
boilers, roofing and floor
repairs as well as facility
entrances and sidewalk
improvements that will bring
those facilities into a.d.a.


So we have a lot of aging and
aged facilities in our parks
system and this increase will
allow us to improve the
preventive maintenance.

The budget includes $220,000
of additional funding for our
specialty programs such as the
creativity club that will
allow us to meet the continued
high demand for those

We have 9 1/2 positions in the
budget to staff a variety of
cultural centers, including
the planned grand opening of
the austin american cultural
center in april of 2013 and
Maintenance activities.

>> Mayor Leffingwell: Asian

>> Yep, asian american, I'm

We're going to need one of
those next.

Okay, planning development
review department earlier this
year, the city council
approved a new fee study.

They approved the 11 positions
to improve the timeliness of
the development review

We're proposing an additional
three positions in the fy-13
budget to implement the
conquer austin plan that was
approved earlier this year.

In the fire department, we
added three positions in the
same pdr amendment to help
with the review and processing
of our development plans.

We're proposing to increase
the overtime budget by

The department currently has
116 basic positions in the way
the fire department operates
is when the positions are
vacant, they back fill them on
overtime basis.

Significant overtime costs
associated with that.

We're proposing the increase
until such time we can get the
vacancies down.

The personal protection
equipment maintenance program
and for the fire department.

The community coordinator and
specialist are needed and the
highlight of the fire
department really isn't even
in the budget yet, but it's
the recent award of the safer
million of funding that will
allow us to add 36
firefighters and we'll be able
to achieve four person
staffing in the remaining
three aerial trucks in
addition to the three rescue
units will be moved up to four
person staffing in 2013.

That's a good news story that
we heard we received that

In the police department, we
have 22 officers to maintain
the ratio of two officers per

We're proposing a april start
date for those officers so the
costs of fiscal year '13 are a
little less than they

And you can see the annual
9 million
that would begin in fiscal
year '14.

12 Positions using 911
dispatchers funded by the ar

That grant went away.

We're moving the positions
into the general fund in this

We're replacing grant funds
used for the austin regional
intelligence center with
general fund dollars and we're
proposing to upgrade ten
officer positions to detective
ranks again with the april 1
start day.

In our emergency medical
services department, I think
one of the real high lights is
not staffing related but more
so equipment related.

We're replacing 55 of our
cardiac monitors on to the
8 million which
will give them the latest and
most modern cardiac equipment

We are also including the
full-year cost of the 12
paramedics that were added mid
year 2012 for operation of the
miller station and another six
paramedics we're proposing for
a new demand unit at the medic
five station for $582,000.

Moving on to the fund level.

These are things that kind of
happened outside of the
context of the department

This is the transfers and
other requirements piece of
the general fund budget.

We have a $6 million increase
in the general fund transfer
to the communications and
technology management fund, a
large number, obviously.

So I want to talk a little bit
about it.

5 Million of that has to do
with the fact that the fund
has some ending balance in
2012 that it was able to
utilize the fund operations
that we didn't need for the
fund transfer.

That's for the general fund.

The transfer to support ctm is
lower than it otherwise would
have been because they were
drawing down the available
ending balance.

Can't draw down the balance
more than just one time.

So in fiscal year '13, we're
seeing an increase in the
transfer amounts because the
ending balance is not there to
do that again.

5 million
of that increase is related to
ongoing capital replacement
needs that had been funded in
previous years it last couple
of years, we funded them out
of the budget stabilization
reserves which is consistent
with the financial policies.

This is the replacement of
computer equipment, monitors,
printers, things of that

We had been funding those out
of our funding stabilization
reservings but not really a
sustainable way to continue to
fund the ongoing capital

You can't fund them out of
reserves forever.

You can do it for a few years
when your economy is
struggling but you need to
start budgeting out of your
operating budget or you'll get

That's moving us from some of
the ongoing capital
replacements, moving way from
funding those out of the
stabilization reserves and
moving back to funding them as
ongoing operating costs.

The remaining $2 million is
related to a variety of cost
increases, a lot of the
standard things, wages,
insurance, retirement, and
some other costs that I'll
talk about when I get to the
ctm slide.

The story is very similar for
the increase in the transfer
to the support services fund.

That fund as well had some
ending balance of 2012 that
they're able to draw down to
help us keep the departmental
rates low in fiscal year 2012
and helped us balance the
budget that year.

But in the fiscal year '13
budget, we don't have the
benefit of that ending

3 million of the
increases is related to that.

There's another roughly $1
million of increase which is
related to our contract and
management -- contract
management department and our
office of real estate

The two functions that had
previously been funded out of
our capital projects
management fund with some of
the reorganizations that the
city managers implemented had
been moving those two
functions out of the contract.

We're moving those to the
support services fund.

So there's no change in the
cost there.

It's a transfer from one fund
to the next.

But the general funds transfer
to the support services fund
as well as our enterprise
transfer is going up as a
result of the departments now
being part of that fund and
their new savings elsewhere
because of the capital project
management fund thereby lower.

6 million
increases in that fund related
to cost increases, wages,
insurance and a variety of
other things that I'll talk
about shortly.

I wanted to wrap up the
general fund discussion with
high lights from the capital
side of the budget with the
highlights being in the areas
of library parks and planning
and development review.

Fiscal year 2013 budget for
million appropriation to the
related new central library

That project is on schedule on

The construction is set to
begin in september of 2013.

We're anticipating a grand
opening spring of 2016.

Moving on to parks and
recreation where the parks are
spending down their bond

That project a 2013 year
8 million,
with improvements to parks
including the conley garerro
senior activity center,
renovation at-bat ol knew
pool, and improvements and new
play escape at dove springs

And including $2 million in
their budget so they can begin
work in the land development
code which is required
following the approval of the
million appropriation for our
great streets program.

All right, move on to talk a
little bit about our internal
service department and the
highlights from those
department ms.

-- Departments.

Cory: mr. mayor?

>> Mayor Leffingwell: Mayor
pro tem.

>> Cole: Before you go on.

I meant to ask you this

You showed the chart on 13
with the basic breakdown of
o&m versus debt.

And because we're headed into
a bond session.

Election I don't know if we'll
go over it any further, I'd
like for you to spend a few
minutes on this chart
explaining how we calculate
the debt portion and go ahead,
explain that.

>> Well, the debt portion is
one of those things that i
mean the short story, it is
what it is.

That the voters have approved
a certain amount of debt for
the city to enter into.

The city also issues
certificate of obligation and
contractual obligations for
various things as it goes
through its business.

And there's a certain amount
of debt service which i
believe if memory serves is in
the neighborhood of $100
million of annual debt service
on our go debt programs, our

And that service rate that's
needed to fund that for fiscal
year 2013 based upon property
tax base that has been

The rate that's needed to fund
08 cents

>> Cole: We're setting that
now when we passed the
september 2012-2013 budget?

Is that correct?

>> That's correct.

>> Cole: So we are confident
because of the way we fund our
debt, which is set first, that
we're going to be able to make
that obligation?

>> Yes, we'll be able to make
that obligation.

>> Cole: Thank you.

>> Mayor Leffingwell: It is
important to remember too that
the debt service portion of
the property tax does not
enter into the calculation of
the rollback.

If it did, the rollback rate
would be much higher than it

>> Cole: I was not expecting
a tax increase in connection
with this bond initiative.

>> Mayor Leffingwell:

>> Cole: Yet we were going to
fund it confidently.

>> Mayor Leffingwell: Right.

>> On to the internal service

The internal service fund is
the largest internal service

You can see all of the
departments there funded by
the services fund.

I wanted to go through a few
of the highlights.

I talked previously on the
previous slide about our
contract manager department
and services office
transferring from the
management fund into the
support services fund.

So the support services fund
is going up as a result of
that transfer, the property
taxes fund is going down.

It's just a shift.

2 million in the
budget for smbr department,
for a new disparity study,
which is legally mandated once
every five years to determine
whether disparity exists
between mbe and wbe groups
participation and certain
groups opportunities.

It's a requirement of
operating the smbr programs.

We have five positions we're
proposing to add to our
billing services departments.

That's two electricians and a
blumer to allow for preventive
maintenance at city

They're also requesting a
research analyst to maintain
the asset management system
and a financial consultant to
assist with their increased
workload related to contracts
and budgets and financial

There's four positions in the
law department in their ethics
and compliance unit.

An additional four positions
in the human resources
department, one being a civil
service coordinator that would
help support the transition of
ems to civil service ranks.

One administrator to develop
and implement strategies for
the city's compensation baned
fits system.

They're also requesting a
programmer analyst to update
the city's personnel system
and increase the time and
attendance support and also
the hr manager position being
transferred to them from the
financial services department.

In the financial services
department, we're proposing
four new positions, two
accountants, a programmer
analyst, and a contract
administrator that helps with
the increasing workloads in
the department.

And then finally in our public
information office, we're
proposing a community
engagement consultant that
would specialize in minority
engagement that would have
foreign language skills.

Then the reclassification of
two positions is being
proposed in the offices of
city auditor in the amount of

Second large communication
fund is the city management.

Some of the highlights include
ongoing technology maintenance
and replacement of computer
and software line sensing, a
assessment and
strategic plan.

That was the number one reck
member -- recommendation of
the i.t. discovery committee.

It includes research policies
and practices with the goal of
producing an
organizational-wide plan that
would help guide and inform
the city's investments in

We have some significant
capital items for ctm,
including upgrades to the
greater austin travis county
radio system, gators, a $32
million project that will be
implemented over six years
with costs being shared with
the regional public safety
partners including the county
aisd and the university of
texas and the upgrade will
include replacing microwaves,
radio and dispatch console
equipment, and other items
that have reached the end of
useful life.

Another large captive project,
8 million for phase two of
the city of austin
telecommunications network.

This project will upgrade the
city's fiberoptic network to
accommodate the proliferation
of video web streaming,
training, video
teleconferencing, event

All of these things that have
surpassed the existing systems
transmission capabilities and
we anticipate this project is
going to roll out over a
four-year period.

million for replacements
including network of storage
needs, mobile data computers,
and voiceover internet

And finally an upgrade to the
criminal justice information
system that's a requirement of
the federal system that's used
by law enforcement agencies
that they used to run
background checks, criminal
history, and licenses and to
obtain other information
related to cases.

>> Mayor?

>> I wanted to add one element
here, the citywide i.t.

Assessment, the city manager
and I had a long ongoing
discussion about that and we
did have a discussion about
this proposal at e.t.t.

And I think there's some
surprise that this was the

That it was going to cost that

So I think we're going to have
continued conversations about
that and I'll look forward to
working more with etm and the

>> Mayor Leffingwell: That
was the upgrade you were
talking about, councilmember?

>> Morrison: I was talking
about the assessment and the
strategic plan, the $1 million
that's number two under the
operating highlight?

>> Mayor Leffingwell: Okay.

>> Morrison: So stay tuned.

I'll have more to say on that.

>> Mayor Leffingwell: Look
forward to it.

>> Okay, we're going to move
on to our interprize
departments and I would just
like to remind you here these
are intended to be a one-slide
high-level overview.

These departments will be
coming back to the city
council, not all of them.

But some of the biggest
enterprise operations will be
coming back to city council on
august 22 to provide you all
kinds of details about their
budgets, but we wanted to at
least leave you with some high
level -- high level

First with the convention
center, the hotel occupancy
tax, collections continue in a
positive upswing in 2010.

million for projecting to end
2012 at $50 million and
million increase in 2013.

Cost containment remains a top
priority for the convention
center for the third
consecutive year.

They're proposing a budget

And they have some significant
work that we're going to be
doing on the cip side of their

$9 Million of new
appropriations and fiscal year
2013 as they're planning to
make a number of improvements
including rebuilding
escalators, parking garage
repairs, and upgrades to at
the electrical capacity out at
the convention center.

The austin energy I think you
all well know in 2007.

He improved the increase in
electric base rates in 2004,
and the result of the
increases is the impact to a
typical user, a 1,000 kilowatt
user of $6.63 a month.

The utility is actively
engaged in holding costs at
fiscal year 2012 levels.

Fourth consecutive year
they're proposing a budget
with no new positions and they
are also, deferring
noncritical maintenance and
some i.t. projects.

The total budget increase for

2 billion budget,
that turns out to be about
2% with a lot of those costs
being things that the utility
does not have control over,
things such as debt service
payments, increases in fuel
costs, increases in the
operating costs of the nuclear
and coal power plant, and the
transmission billout costs
that are set by ercott.

So a lot of the increases are
what we characterize as

side, there's
$228 million of planned
1 billion over
the five-year planning
horizon, $180 million related
to investments in power
production and alternative
energy projects and another
$20 million in fiscal year '13
will be for the fiscal control
center, $5 million for the
decommissioning of the plant
5 related to customer
billing and projects.

Going on austin resource

They're proposing in this
budget a new rate structure
that is continuing their
design changes that are
intended to encourage
recycling by their customers.

Their base rate which should
have been on this chart but is
not, the base rate is proposed
to increase by 75 cents by
$8.75 to $9.50 a month.

So everybody will pay that
base rate.

Beyond that, you'll pay based
upon how much you throw away
on a per gallon basis with a
proposal of 16 cents per
gallon for the smaller carts,
the 24, 32, 64 gallon carts.

So it's a flat per gallon

If you have a larger gallon
cart, you'll be paying more.

There's a premium being placed
on the individuals that
continue to use the 96 gallon
cart charging 25 cents a
gallon for those users.

Aver overall impact is 2/3 of
their customers is a $1
increase per month.

Another source of funding for
the department is the clean
community fee formerly known
as the anti-litter fee.

Nick still known as the
anti-litter fee.

There's a resolution coming
forward to council to change
the name of that fee.

That fee funds litter
maintenance, tree cleaning,
hazardous waste disposal, code
compliance activity, and also
a $1 increase to customers in
50 a month
increase to the commercial

Some of the operating budget
That are being added to
implement the universal
recycling ordinance that
requires multifamily and
commercial properties to begin
offering recycling services.

Improve customer service.

The department's goal is to
increase citizen satisfaction
with quality of curbside
collection from 85% to 90%
being highly satisfied.

They're adding two positions
to enhance the quality control
in customer service.

In the budget to enhance
marketing outreach and
education efforts on a whole
variety of zero waste
initiatives, things ranging
from mattress recycling, pilot
programs, to a new business
recycling assistance program.

Education on the single
plastic bag -- plastic bag use

A mailing campaign, a public
education so they have really
aggressive and innovative
activity in the planning to
fund in fiscal year 2013 as
part of the goal to get to
zero waste by 2020.

8 million
of planned spending for fiscal
million in new vehicle
purchases and $7 million
related to the harold court
facility environmental
remediation project.

Regards of the austin
transportation department,
this department is proposing
5 new positions in fiscal
year 2012, two of them related
to taking to the annual
program for austin energy.

1 1/2 To help administer the
vehicle for higher and valet
parking programs.

A business consultant that
will assist them for the long
range and strategic planning
effortings, and then the
public information office
specialist that will help
enhance community engagement

On the capital side, they're
3 million in new
appropriations for the
downtown initiatives,
including urban rail planning
and way finding and another
$783,000 will be transferred
to the great streets program.

I do want to mention here that
the department anticipates
bringing back to council on
august 23 a proposed change to
the funding model for the
great streets program.

Currently it's 30% of parking
meter fees in the downtown

Answer for the great streets

The department is going to be
requesting that that program
continue but the hours that it
applies to be for the original
hours of operations, not the
extended hours.

And so that's something that
you'll be hearing more about
and we'll be coming back to
council in august.

I wanted to make you aware of
it in this presentation.

The department is funded
primarily through the
transportation user fee that
funds the public works

We're proposing a 7% increase
in that fee which would cost
the typical house hold or
every house hold 51 cents per

Going on to the austin water

You all know, we've seen a
presentation from mickie

They went through a very, very
long working group.

Process with the joint sub
committee and austin water
utility, financial planning,
and the results of that were
and the recommendations of the
joint sub committee involves a
two-day rate change in fiscal
year '13.

Phase one in effect november 1
and have a systemwide increase
on reclaimed wattever.

Phase two of the rate change
will then actually implement
the water rate recommendations
of the joint sub committee.

The proposed changes include
eliminating the current
revenue stability fee,
redesigning the fixed revenue
structure for all customer
classes, creating a new water
revenue stability reserve fund
to offset revenue shortfalls.

So there's a lot of changes.

It's a fairly complicated rate
structure that you've seen a
little bit already.

They were presented at the

You'll hear more about it on
august 22.

The combined impact of those
77 per
month increase for the typical
water utility user.

The budget includes funding

13 Of those are related to the
operation and maintenance of
water treatment plant four and
another five to enhance water
conservation and quality

Four, related to the needs of
just expanding growing utility

And an additional four that
will assist them in enhancing
their planning and long-term
business practices.

I do want to mention that the
departments currently in the
process of developing a
long-term staffing plan.

If you go back and look all
the way back to 1996, they've
only added a net 13 positions
in all of those years.

And the utility has obviously
grown a lot since that time.

So pretty substantial staffing
needs in the department.

They are able to defer the
staffing increases for quite a
number of years, again,
proposing 26 staff in the '13
budget and anticipate coming
back to council and continue
to discuss about staffing
needs in the utility.

And a long-term staffing plan
for them.

As you all know, it's a very
cip-intensive operation.

Fiscal year '13 spending plan
6 million, a $1
billion of spending plan --
spending anticipated over the
five-year horizon.

$238 Million of that $1
billion being related to the
construction of water
treatment plant four.

And then other projects
include waste water facility
improvements, expansion of our
replanned water system, and
funding for new and replaced

Aviation, strong revenue
growth, it's projected to

They're projecting in fiscal
7% increase in the
landing fees.

increase in nonairline

One of the key metrics for the
airline industry is the cost
per passenger and they're
always working diligently to
keep the cost down.

Projecting a modest increase
in that metric for 2013.

Some of that is related to the
Enhance management and
facility maintenance as well
as i.t. support.

8 millione essentially
what the airport does, they
transfer the excess revenues
to the capital fund to help
meet the needs of future
capital improvements,
8 million in
fiscal year '13.

million in new appropriations
in fiscal year 2013 with the
focus of their cip program
being on a variety of terminal
facility improvements.

Refurbishments, railway
safety, and great projects as
well as overfill parking, a
lot of improvements.


We're recommending some
significant staffing
enhancements there.

The department currently has
69 positions and proposing to
add an additional 19 positions
with six of those being field
positions and three more
administrating positions
related to the expansion of
the private waste hauler
monitoring and licensing

>> Designed to expedite the
resolution of compliance cases
by providing property owners the
potential to resolve them more
quickly and less expense through
mediation at the department
level as opposed to having it
blow up to a court of law type

And I mentioned previously, that
of the code compliance
department as well as the
resource recovery received
funding from the clean community

And we're proposing a $1 per
month increase for residential
50 per month for
commercial customers.

Going on to public works, we're
A tree maintenance and planning
crew, four to manage increasing
workloads and then I think we
have an innovative approach for
three positions for a career
progression initiative.

Designed for field employees in
the street and bridge division
seeking career advancement.

There's 165 non-supervisory
positions in this division and
the purpose of these three new
positions would be to assist
this group in developing the
skills they need to further
advance their career in the
public works department.

In regard to the public works
3 million is
being allocated to bike and
pedestrian improvements and
roughly $9 million for the
ladybird lake boardwalk that's
going to be getting under
construction and
.4 million for street
reconducts of third street and
as mentioned under the
transportation department
proposing a 7% increase in the
transportation user fee to fund
not only this department but the
transportation department.

Neighborhood housing and
community development, service
much of their funding from the
federal cdbg and home grants, a
$178 million reduction in those
grant funds as we mentioned back
in april.

8 million of
reductions that occurred in
fiscal year 2013 -- 2012,
they've been offset by a
one-time grant awards and to try
to mitigate service impacts
proposing to shift five
positions over to our housing
trust fund.

And then as I mentioned also
previously as part of the
changes making in the
sustainability fund and moving
those program costs into the
general fund, that freed up some
dollars that could be allocated
to the housing department.

To again, help with the drop in
grant funds, the additional half
million from the sustainability
fund to neighborhood housing and
community development.

In regard to the capital budget,
.5 million of the
$5 million that was approved as
part of the 2006 bond program
has been appropriated.

The last $175 million is
anticipated to come to council
this month and fully
appropriated and projecting a
4 million on
affordable housing programs in
fiscal year 2013.

So the short story here, they've
seen significant drop in grant
funds and we've been able to
kind of band-aid together an
approach to keep them whole for
fiscal year '13 but want to put
council on alert we expect
funding challenges in fiscal
year 2014 and beyond for this

A lot the actions have been
taken to address shortfalls in
'13 and we're going to have to
undertake a comprehensive review
of the programs and identify
funding options that are going
to be for sustainability in the
future and tomorrow's council
meeting, you'll be seeing a
presentation from the housing
department on their action plan
that's required to receive those
federal grant funds.

I believe this is our last
enterprise department.

Watershed protection, funded
through a drainage utility fee.

7% increase which would have
a 60 cent per month increase per
equivalent residential unit.

The highlights are related to
the capital program and in
particular, to the continuation
of infrastructure and system
improvements outlined in their
master plan.

One of the highlights is they're
increasing their transfer to
their capital program.

Increasing from $19 million to
$21 million in fiscal year '13,
part of their long-term funding
strategy to implement the
drainage master plan over a
40-year period.

Capital budget, a number of
9 million planned
for fiscal year 13.

$23 Million related to the
waller creek tunnel project and
another $10 million for at
watershed protection master plan
5 million for
erosion and flood control and
7 for
water quality remediations.

So I think five of the seven of
you have seen these slides

This is the work we've done with
the joint subcommittee of the
school district, the city and
county trying to take a cross
jurisdictionality look.

The tax rates projected and the
impact it has collectively on
the citizens of austin and i
wanted to share some of that
with you to close out the

>> I wanted to share some of
that with you, the full council.

This slide shows the potential
timeline of tax elections, the
best information we have right

We're heading toward a
november 2012 projected bond
election for the city of austin.

We're projecting it at
$385 million, though that's not
been decided yet.

It's just the number we're clue
including at this point in time.

The school district anticipates
$350 million to $500 million in

Followed by november of 2013
with a likely tax rate election
of five cents.

And they've informed us they may
need to go beyond five cents.

The maximum would be nine cents.

The numbers we're putting
together, we're assuming it's
five cents and then the acc
projecting a bond election in
november of 2014 of
$600 million.

And the things below that dark
blue line are things we don't
have as much information on.

Urban rail has been discussed.

At one time it was discussed as
part of a november 2012 bond

That's been delayed and at this
time, we're anticipating
somewhere between 2014 and 2017,
urban remain would make its way
back and see a bond election
related to that and there's
discussions from the central
healthcare district related to
the medicaid transformation
waiver and we've been able to
get very little information from

A lot of things still up in the
air and we don't know at this
time, they've not informed us,
when that election might occur
or how large it might be.

So we go on to the next slides,
we show you a couple of
different scenarios and that
potential tax rate election from
central health is not in any of

You look at the color schemes,
we tried to match them to the
next slide where you've got
things in red and things in

You go to this next slide and
the blue line is the base

So essentially says if we don't
do any of the things on the
previous slide this is what we
project as the tax rates

42 In fiscal year '13,
largely flat all the way through
the next five years.

To $2.40 in fiscal year '17.

The red line corresponds to the
items in red on the previous

If we were to go ahead and get
voter approval for all of those
things on the previous slide.

The tax rate projections would
be the red line and the green
dotted line, the additional
amount that rail could add in
regard to tax rates.

Trying to do the same for the
utility bills, we try to do for
all of the different entities
and define a typical user.

And so our typical user we're
using here is the city of
austin, owner of a median valued
home, $178,000, and then assume
that home grows at a rate of 3%
annually and assume in regard to
the utilities all of the
typical, 1,000-kilowatt per hour
and we
put of the numbers to it and
take a look at what is the
average tax bill from all of
these different jurisdictions
expected to look like for the
typical user over time?

And the number that I'll
highlight you on the one in the
far right column, the compounded
annual growth rate.

It gives an indication of what
the year over year growth we're

If all of these things were put
into effect and the bottom line,
6% in the tax and
utility bill of our residents
over the next five years if all
of the different bond rates and
tax elections highlighted on the
previous slide were to be
approved by voters.

Final slide, next steps in the
budget process, we'll be back
before council on august 15th
in the morning with budget
presentations from library,
health and human services, pdr
and planning and development
review and also, we need to --
pard and planning and

And we need to start the process
of setting the tax rate and the
first step is to approve a
maximum tax rate.

Not approving it, just setting a
number that will be the maximum
tax rate you would consider as
part of the budget adoption.

We have typically recommend it
be set at the rollback
calculation and ask council to
set a maximum at the
august 15th meeting.

Session to hear from the --
General fund departments and
several of our enterprise.

Austin energy and austin water
and code compliance and
august 23 and 30, a whole array
of public hearings and
To seek your approval for the
fiscal year '13 budget.

Happy to answer questions.

>> Mayor Leffingwell: Mayor pro

>> Cole: I wanted to look at the
timeline of the tax elections.

You presented it to audit and
finance and the general

I want to make sure I understand
the tax rate forecasts between
'12 and '17.

The top green line, what does
that correspond to?

>> The -- let me explain the red
line, then it's easier to
explain the green.

>> Cole: Ok.

>> The red line corresponds to
everything on this slide I'm
about to switch to.

It corresponds to the tax rate
that would be needed to support
the projected city of austin
bond election, the school
district bond election, the
school district tax rate
election and austin community
colleges bond elections.

So everything on this slide in
red corresponds to that red line

And then the green line is if we
were to do all of those things,
plus urban rail, that the tax
rate needed to support that

>> Clerk: And so we don't have
any number or information --
specific information about the
medicaid '11-15 waiver from
central health?

>> I do not.

>> Cole: That's the only thing
not part of the potential

>> That's right.

>> Cole: When we look at the
potential impact to the typical
homeowner without rail, this
really corresponds to the red
line, is that correct?

>> That's correct.

>> Cole: Ok.

And so when we look at it, over
a five-year period, is it
correct that you're calculating
a combined annual growth rate of
6 in total for all of those

>> Yes, that's all in,

>> Cole: Ok.

And that's everybody, excluding
central health and excluding

>> That's right.

>> Cole: Ok.

So -- help me understand, there
was I think in the general
public and media, a premise that
our property taxes have went up
38% over the last 10 years.

I don't know if you saw the

And so on the one hand, I think
the public gets confused, and
when we say -- even with all of
these jurisdictions, we're only
which I think is true, and then
we look at a calculation over a
10-year period that suggests
we're raising property taxes

>> Well, this number is an
annual number, so you know, let
me get a little loose with the
math, over 10 years, you'd
expect it to be 36% if we
continued with the annual
increases of 3.6%.

>> Cole: Ok.

So the calculation over a long
period of time that could get
you over 30%.

>> Yes, that's right.

>> Cole: Ok.

But still, our annual numbers
are on target?

>> Our annual numbers are at
3.6%, on target.

And you look at it relative
to -- you know, the typical wage
increase in the 3.5%.

And cost of living increase,
fuel gets more expensive.

I mean, just consumer price
index, inflationary forces will
be in the neighborhood of 3%.

So, you know, to me it's not a
big surprise, you see a
compounded annual growth rate of
about 3.6%.

That's what you would expect.

>> Cole: That's what we mean by

>> Yes.

>> Cole: So when we talk about
increases, I think you hit on it
when you talked about the cpi,
but I want to connect it to the
property tax assessed values
because a lot of times we're
seeing increases in assessed
value on top of our rates and we
can't control the increases in
the assessed values, is that

>> We certainly don't control or
have any say in the appraised
values that the different
appraisal jurisdictions come out

There's the interplay between
the appraised values and the tax
rates and, you know, you can see
that when the appraiser says the
values are going up.

Our tax rates otherwise are --
generally come down and vice

If your appraised values are
coming down, the tax rates go up
to generate the same amount of

>> Cole: So we're at the mercy
of our our prosperity?

I say that, because we see a
increase in our sales taxes and
we're happy when people are
earning more and then see the
property tax values go up and as
we said, our tax rate, we see an
increase in the revenue coming
in and that's good for the city
in terms of services, at the
same time, we have to be careful
of not overdoing that for the

>> I think that's correct.

>> Cole: Ok.

You're taking care of that?

>> I certainly am.


>> Cole: Thank you.

>> Mayor Leffingwell: I think it
would be useful, I'm not asking
for this, it would be useful to
see those relative to cpi or
some index.

Some appropriate index.

Which would -- looks like,
sounds like would probably show
a fairly flat trajectory.

>> I mentioned cpi.

I don't think that's the right
indicator, it's based upon a
basket of goods and quite
frankly, that doesn't look like

But I wouldn't rely too heavily
on cp being the correct gauge
what drives municipal cost

But I understand what you're
looking for.

>> Mayor Leffingwell: But would
provide a cost to the consumer
because the consumers --
consumer's basket is similar to
the cpi.

>> Sure.

>> Cole: I would like to follow
up with that request also.

We talked about it on a previous
slide, no other city would not
want the type of numbers that we
have in terms of our prosperity.

And it would be nice to see that
in the context of what we charge
for our tax rate and tax values.

Especially from our peer cities.

And I think you've done that

>> We've done it for our tax --

>> Cole: Yeah, for our -- our --

>> Mayor Leffingwell: Briefly,
to accompany the follow-up
questions later on -- and

But I wanted to clear a deck
on --

>> Spelman: Page 49.

We have property taxes, which is
the first five rows and we have
a total property tax value which
you show is increasing and the
compound annual growth rate of
2% over the next five

And then we've got city of
austin utilities and fees which
cgr is going up and the total
6% on an
annual basis.

Is that about right?

>> That's right.

>> Spelman: Is there anything
else that the local government
is going to cost me that's not
on this graph?

>> Sales tax.

>> Spelman: Ok.

Development fees?

>> Uh-huh.

>> Yes, I mean, it depends upon
what you -- what you do, so if
you're doing a room addition or
bidding a new home, development
fireworks participating in rec
program, fees.

If you need to call ems, either
you or your insurance company
will pay fees.

So if you have a lot of parking
tickets you'll pay some fees.


>> Spelman: Not lately.


So city stuff.

Capital metro which takes sales
tax money and spend it's on the
bus system and maybe something
else some day.

Anything else besides that?

If I wanted a chart like this
that rolls up all of the costs
of local government.


From the standpoint of the
average homeowner, most people
don't have a sense for where
their money goes, just knows
that the trash gets picked up,
the lights stay on, there's a
bus that comes by, somebody
handle that is and it costs them

Can we roll all of those costs
up into one slide, like 49 or
one piece of paper, one table,
that includes the whole thing
and gets us to the bottom line,
here's our compound cost of
local government is going to do.

Including the city of austin.

A relatively small piece of that
whole puzzle.

Is that something that's doable?

>> I think -- it.

>> Mayor Leffingwell: I think
I've seen those numbers for a
total, like everything, federal,
state, local, around 40 plus

>> Spelman: I would exclude the
federal government as something
I have no control at all.

Lord knows, I have no control
over the state legislature
although I really wish I did.

But we have control what happens
locally, I was wondering if we
could get a local number.

This looks reliable.

What we need to add to it to be
all in.

>> I think this is reliable and
I think we could come up with
something to do for sales tax,
which is obviously a large
source of revenue.

Most goes to the state, doesn't
come to the city.

But I think we can do something
reasonable, on a typical payer

At the typical income levels and
taxable income and figure that

Beyond that, it strikes me as
being extremely messy to try and
determine in regards to
development fees.

>> Spelman: Ok.

>> What's the typical person --
you know, I don't know what it
would be and seems messy and i
don't know that it would be that
much relative to other dollar

I think sales tax would be a
value-added improvement to our
analysis and I think we can come
up with something for that
reasonably well.

>> Spelman: Two observations.

One is that when do you that,
it's probably not going to have
a big effect on the compound
is about twice the rate of

If you use cpi or whatever,
whatever you use.

And an argument could be made
that local government has a --
as a whole should not be taking
more out of people's pockets,
meaning our increase on an
annual basis should be about the
rate of inflation, maybe a
little bit more or less.

But twice the inflation, means
we're taking on a percentage
basis out of -- more out of
people's incomes.

Is that -- if that question is
put to me, how would you respond
to it?

>> I think I would pick up some
of the themes I was going to
mention to the mayor, I don't
8% if you
peel of the onion, to get to the
8%, it doesn't look a whole
lot like our basket of goods
looks like.

That basket includes food

We don't really buy food that

A little bit but not much in the
way of food.

The basket of food goods for the
consumer doesn't include
personnel costs.

8% a

>> Mayor Leffingwell: That's
almost always the case we
have --

>> we have cost rates that
exceed the inflation rate.

>> Spelman: That's what is going
on here.

What's different about ours
which drives the inflation rate?

>> One good example could be we
have some contractual
obligations with respect to
public safety.

You were alluding to the
inflation rate as being 1.8%.

We have wage obligations of 3%.

And I suspect there are other
examples that we could point to
where we -- we have little if
any prerogative but to fund
those things.

The context in which we talk
about the budget, part at least,
are uncontrollable cost drivers
that we have to -- simply have
to deal with and at the outset,
oftentimes, they exceed,
generally, exceed that rate.

>> Spelman: On a short-term
basis, two, three, four-year
period, something like our
contracts with the public safety
unions are not controllable.

On a long-term basis, of course,
they're completely controllable
because we can negotiate
whatever rate makes sense to the
citizens of austin.

>> In terms of the current
contract compared to the
previous one, we have brought
that cost down considerably, if
we were to compare the last two

So d in regard to that issue, we
have focused on that.

>> One large difference between
the grocery basket, we have
several large very capital
intensive surprise funds, austin
energy and austin water and each
has over a million five-year
capital program and to fund
those programs and capital
improvements is in these rates
and the estimated bill for

Sew that will drive some of this
number up as well.

>> Spelman: Why is it that we
are -- I think I know at least
part of the answer.

But I want to get a better

Why having a capital intensive
enterprise fund is going to
cause our costs to go up faster
than the rate of inflation?

Is it the nature of the capital
itself or the kinds of things we
have to buy with the capital.

The population growth inside of
the city?

>> Some is growth related.

Some is the timing of when you
have to build the capital.

Just as we finished a pretty
large program for clean water,
now we're building a treatment

So when you buy a power plant,
there will be a spike in capital
costs for a while.

But it's a long-term asset and
there's intergenerational cost
and you try to spread the cost
out over time by issuing the
debt on it.

But it will affect your rate to
extent and not necessarily tied
to a cpi index.

>> Spelman: Sure.

>> There are construction
indexes specifically for
electric utilities that are very
different than other
construction programs.

That's the nature of the

>> Spelman: So if we're heavily
capital intensive in
construction cpi goes up faster
than the rate of inflation, our
costs will go up faster than the
rate of inflation.

If we're dealing with a highly
labor intensive business, if
labor costs are going up faster
than capital costs and it could
be my cpi market basket is only
going up 178%, but the labor
portion of that is actually
going up faster than that, my
salary going up a little faster
than the rate, although not
bloody much, and I think it's
largely true for a lot of people
and there's knowing to be
that -- that component of the
cpi going up faster.

I'll probably have more to say
and ask about that but it's a
general observation if our costs
are going up faster than the
rate of inflation, it's true
we're taking a bigger percentage
out of people's paychecks and
people are entitled to know why
it is we're taking a higher
percentage and what they're
going to get in exchange.

And that's something we have
to -- I think work on a better
answer for that over the next
few weeks.

One other observation to make on
this page 49.

And that is that the top row for
the city of austin property
'12 to '13 for the
typical homeowner by projecting
up by 5% in '14, 3% in '16 and
5% again in '17 and wondered why
is it going up a little now but
more in the future?

What's going to be driving those
increases over the next five

And is it conceivable we ought
to be smoothing that increase

>> You calculated those

>> Spelman: Yeah, yeah.

>> Off the cuff, I could I would
anticipate it would have
to-to-do with the timing of the
debt service hitting on our bond

You know, doesn't necessarily --
do the bond election in 13 and
by the time you issue the debt,
it's later and you don't pay the
debt service until after you
issue the debt.

So the bond election we're
proposing in 2012, the tax rate
impact, you would see later on,
you're not going to see them

>> You'll have that in addition
to the completion of the 2006
and 2010 bond programs not fully
spent at this point.

>> Spelman: So what's driving
the changes in property taxes
are not anticipated changes in
operation and maintenance

We don't know what those are
going to look like yet.

We haven't come up with a budget
yet for '14, '15 and '16.

>> We have the projections for
the other stuff as well.

All of that is built in.

Based on demographic projects,
two officers per thousand.

Dialing in additional officers
and anticipated increases in
wages and health insurance, 3%
and 10% is the assumptions for
the out-years.

We build those in and make
assumptions about the property
values and what happens with the
property values is going to
change how much revenue we've
collected any given tax rate.

It's all in there.

>> Spelman: Ok, would it be safe
to say that the first response
was that debt service is driving
this train.

Is it mostly debt service?

Small part, or mostly l and m?

Even steven?

>> In terms of the increases, we
could split it out for you, but
I would have to do digging to
see how it's split out.

Both of those.

>> Spelman: I wouldn't presume
you to come up with a number off
the top of your head, but I'll
be asking about it later on.

>> Mayor Leffingwell: To make
sure I have understand, we're --
we've got a flat trajectory at
least for the next few years on
the proportion of property tax
for debt service, remaining the

I'm having a hard time seeing
how old debt authorization comes
back and change that is.

Or you don't understand how it

>> The tax rate is not going to

Our projection is we can have
$385 million with no change in
the tax rate.

That's not to say that the debt
service requirement doesn't

>> Mayor Leffingwell: I thought
that's what this chart was

The one bill was reference, the
entire -- the growth and entire
property tax in which the debt
service portion is remaining
fairly constant.

At least now, what the forecast

>> The debt service rate is
remaining constant flute this
focus forecast, but the property
values are projected to grow.

>> Mayor Leffingwell: So unless
you're forecasting in these
out-years, an increase in the
debt service rate, that's not
the cause of these increases.

>> We're not projecting --

>> the short answer is yes to

The --

>> Mayor Leffingwell: Yes I'm

>> Yes, you're right.

>> Mayor Leffingwell: Council
member morrison.

>> Morrison: [Inaudible]
because the general fund --

Thank you.

I wanted to ask how it ties to
slide three.

Our general fund budget is
structural balanced and then the
3% increase
projected over the five-year
planning horizon.

3 centss per year
included here in slide 49?

>> It is, and the increase is
not related to the debt side of

>> Morrison: Right.

>> The debt -- and the
1 pennies over the
next four years for a total of

That's what our current
projections indicate.

>> Morrison:2 this
year and then spread out over
the next four years?

Is 1.1?

>> That's right.

>> Morrison: And a lot of the
driver, slide 49, is the 3%
increase in property value
because presumably the person is
still in the same house.

>> That's right.

>> Morrison: Got it.

All right.

So that's a relatively speaking
1 cent spread out over four
years is very low.

>> Right.

>> Morrison: Ok.

>> Sure.

>> Morrison: Compared to what
we've been looking at.

2 centss, what percent
was that?

That was a number I wasn't sure

Less than 8%.

>> Oh, the tax rate?

>> Morrison: Uh-huh, the tax
rate increase.

>> From 48.11 to 50.29.

So actually 2.18.

>> Morrison: And percent wise?

We're less than 8%, what percent
is that?

>> Yeah, it was -- the rollback
that maximum 8% rate was 50.5.

>> Morrison: Right, and what is
the 2.2 centss percentage wise?

-- Maybe you can give me that

That's what I was interested in

I have a couple of comments i
wanted to make.

I understand there's a lost of
conversation after the central
health about possibly doing a
tax rate election this year and
I think we'll know soon.

So maybe when we get that
information it will be
interesting to get an update on
this chart.

Although it's important to note
their contribution to the
overall tax bill is pretty low.

It's $115.

So -- I think that will be
helpful information and for
clarification, the 1115 waiver,
that's not about taxes.

That's just something that they
think will play a major role in
their finances this year and
that's why they were holding off
to figure that out if that came

Iuate to make one other -- i
want to make another comment.

On slide 42, we talked about
came to our public health and
human services recently because
we've been following and having
conversations on the situation
with woodridge apartments and
what the significance of that is
and the told us about the plan
for a proactive multifamily
inspection program which I think
is great but part of the
conversation around that also is
that some of these older
multifamily properties are
critical to affordability in

They're some of the most
affordable and we want to make
sure that we're going to be
helping incentivizing,
maintaining them, as opposed to
if one particular property is
sort of in bad shape, they may
be inclined to sell it off,
demolish it and build
higher-cost apartments.

So one of the things I think
important to do is really to
partner this program with making
sure that we can have some
opportunities to discuss with
these folks ways that they may
be able to get funding if they
need, and in terms of
low-interest rates.

If they maybe want to enter into
a long-term affordable housing
program with the city or
something like that, but I think
those two programs need to be
paired together so that we
really get the future that we're
I think looking for.

And I don't know if there's any
thought -- I assume if we get
more housing bonds approved, we
will be funding some more home
repair and maybe multifamily
repair and we could align those
two but that's a really great
opportunity to bring those two
kinds of ideas together.

>> Evaluate that with your

Is at any time something that
we've had a whole lot of
conversation about at this point
in regard to the particular
complex that has had so much
notoriety lately.

That's a private enterprise and
so how we would ordinarily
respond to a set of
circumstances like that, in
addition to red cross, for
example, it was awkward and in
this -- in this particular case,
but your point is well taken in
terms of what we propose here
and seeing if we can develop
strategies that would help to
incent better behavior --

>> Morrison: I know the issue of
how we have respond properly
with a private enterprise in a
situation like that.

I'm not talking about that.

I'm talking about how do we make
sure we have a strong affordable
housing preservation program.

>> Did you have something else
to add.

>> Yes.

>> Assistant city manager.

Council member, actually that's
one of the strategies we're
looking forward to.

And we have talked to carl about
that, because there are
receivership -- possible
receivership programs.

As you mentioned, some
incentives to try to make sure
we have the affordability.

But that's one of our
preservation strategies moving
forward and that's something
that staff is already looking at
trying to incorporate into our
affordable housing discussion
and certainly the bonds will
hopefully get us there.

>> Morrison: I appreciate that,
and goes beyond any multifamily
properties that might be

If we know properties are about
40 years old, they can go one
way or the other.

Be rehabbed or demolished and
build likely much more expensive


>> Mayor Leffingwell: Other

Council member martinez.

>> Martinez: Council member
morrison is right.

We talked about this in the
health and human services
subcommittee meeting.

One of things that we discussed
that I'm not sure that betsy has
on hand in terms of information.

Before we go and ask the
citizens for potentially
$70 million more for affordable
housing, that we establish a
baseline and know where we are
today and ensure that we're not
going in reverse.

In terms of spending more money
on affordable housing yet losing
existing stock.

That's really the crux of it.

I think the community is going
to be supportive of spending
millions more on affordable
moving forward.

Affordability moving forward.

What I would like to see is a
baseline that lets us know we're
making progress toward achieving
the goals of affordabilities
that needed for citizens, as
opposed to spending millions but
on the back end, losing the
complexes at at faster rate than
we're affording affordability.

Does that make sense?

>> Absolutely.

Thank you.

>> Martinez: Thank you.

>> Mayor Leffingwell: Council
member tovo.

>> Tovo: I know we'll get the
budget detail this afternoon and
some of my questions will
probably be answered in that.

But in instances where there's

Say, the transportation
department, the -- sorry, maybe
that's not a great example.

5 for the vehicles, rather
Going to talk about this.

Oh, it is a fte.

175 For the vehicles hiring a
valet parking project.

Does the budget detail we'll
receive calculate out what the
cost recovery is for those
Will be assessed through those

Or is that something that
will -- we'll need to follow up
with a budget question.

Basically when bringing on new
staff, and maybe code inspection
for the multifamily program is
one of them, will we receive in
our documents today an analysis
of how the fees and potentially
any new or increased fees might
support those positions?

>> I think in some cases you may
see language that would talk
about that.

Maybe for the planning and
development review, adding 11
positions and the cost is fully
recovered through the fees being

In that one you mentioned, i
think in those, probably request
for additional information.

>> Tovo: Great, I know we had
that discussion with regard to
planning and development revenue
and this is something that --
development review.

I guess my other more general
question, when you have
something like the austin
transportation department, one
of the departments with a
proposed increase in fees and i
think it was -- I've forgotten
what the amount was -- does the
budget detail that we'll receive
this afternoon talk about how
these individual new positions
factor into those fees?

Or is that a budget q & a?

For example, how much of the --
I think maybe a 50 cent fee or
something like that, increase,
proposed for the austin
transportation department, how
much of that -- how much of that
is attributable to for example,
the new public information
specialist or the new business
process consultant.

>> It doesn't break it out
position by position or line
item by line item in that way,
it's just going to say these are
the cost increase, whether they
be built if for wages and
insurance or new positions to
fund new or enhanced services.

It's a total cost and in order
to fund that total cost, here's
the rate that's required.

So it's done at a global level
and if you're interested in the
details we can get those for

>> Tovo: Great.

I think that's it for now.


>> Mayor Leffingwell: Ok.

That's it?

And next session is when?

>> AUGUST 15th.

9:00 A.m.

>> Mayor Leffingwell: Look
forward to that.

We start on the, I believe with
the police, fire, ems.

>> It's actually our community
services department and planning
and d. review.

>> Mayor Leffingwell: Council
member martinez.

>> Martinez: I'm reminded of
last year's schedule that looked
eerily similar, we're going to
try and do a budget presentation
on seven departments, in one

And if I recall, last year, we
never even got through the first
three or four, much less all
seven in that one day, had to
schedule an extra meeting and
postpone some items.

Departments, it's going to be a
long, long day, if we get
through all seven.

>> Mayor Leffingwell: That's a
good point.

We'll take a look and see if
there's some adjustment can be

Without objection, we stand
adjourned at 11:20.