HomeMy WebLinkAboutMIN MAY 19 2000 M I N U T E S - CITY OF BEAUMONT
Lulu L.Smith DAVID W. MOORE,MAYOR Guy N.Goodson,Mayor Pro Tem
Andrew P.Cokinos 2000 BUDGET SUMMIT Becky Ames
Bobbie J.Patterson May 19,2000 Audwin Samuel
Lane Nichols,City Attorney Stephen J.Bonczek,City Manager Barbara Liming,City Clerk
The City Council of the City of Beaumont, Texas,met in a special Budget Summit with administration and
staff on May 19, 2000, at the Tyrrell Park Garden Center, Beaumont, Texas, at 8:00 a.m.
The Summit opened at 8:17 a.m. Councilmembers present at the meeting were: Mayor Moore, Mayor Pro
Tern Goodson,Councilmembers Smith,Cokinos,Ames(arrived at 8:35 p.m.),Samuel(arrived at 10:50 a.m.),
and Patterson. Present were staff members:Stephen J.Bonczek,City Manager;Lane Nichols,City Attorney;
Barbara Liming, City Clerk; Kyle Hayes, Executive Assistant to the City Manager/Economic Development
Director; Andrea Deaton, Budget Officer; Paula Labrie, Comptroller; Sue Dismukes, Acting Human
Resources director; Kirby Richard, Central Services Director; Tom Warner, Public Works Director; Ingrid
Holmes, Public Health Director; Luke Jackson, Parks and Recreation Director; Tom Scofield, Police Chief,
Charles Mullins,Assistant Fire Chief;J.P.Colbert,City Engineer;and Jack Moon,Environmental Engineer.
Also,present to conduct a Stormwater Utility Study were consultants: Shaun Pigott;Kim Carroll with Carroll
and Blackmon; and Mike Collins with U. R. S.
The City Manager and City staff presented the City's Current Fiscal Situation,Projected Financial Situation,
Projections Year End 2000, Long-Term Outlook, and 2001 Budget Agenda Items shown in Exhibit"A,"the
Budget Summit manual, before recessing for a morning break at 9:55 a.m.
The Summit resumed at 10:15 a.m. and Consultant Shaun Pigott presented a Stormwater Utility Study
compiled in collaboration with Carroll and Blackmon and U. R. S shown in Exhibit`B."
Some conclusions and direction of issues by Council were:
Consider reprioritizing projects:
School Safety Sidewalk Program at Odom Academy,Blanchette Elementary,and Ozen High
School - Footbridge at Amelia - Add Port Interchange
* Council submit top three priority projects to City Manager
�t Proceed with Stormwater Utility fee strategy and direction - emphasis on public education process
regarding need and advantages
* Proceed with 20 Year Retirement Issue
Proceed with Compensation Study
* Proceed with Water and Wastewater Capital Improvements - Consider publication of a brochure
identifying advantages
* Approve shift of 2 cents from General Fund to Debt Service
* Recognized Appraised Values lower than projected
* Reinstate Solid Waste In Lieu Payment
* Maintain status quo with Recycling Program - explore education methods for children and adults
and strive to develop a program that would qualify Beaumont for All-American City status
* Support Economic Development Incentives
* Consider alternatives to Wading Pools because of unanticipated rehabilitation costs, Federally
mandated requirements,and liability - Investigate partnership with YMCA swimming programs and
consider other swim programs, fountains, mushrooms, etc.
* Accepted Use of Fund Balance report
* Approved Expansion of Municipal Court Services (addition of Courtroom No. 2 on part-time basis)
Lunch break from 12:00 p.m. to 12:35 p.m.
Council submitted citizen issues and concerns for fixture consideration:
* Move the Convention & Tourism Division off-site
* Review Hotel Occupancy Tax (HOT)Fund Allocations
* Discussed Fire Museum and donation of an old fire truck for use at events
* Additional parking area for Loose Conservatory and relocation of a light pole at Tyrrell Park Garden
Center
* Donation of former LaSalle Hotel site to Community Players
* Spindletop 2000 participation
* Regional Visitors Center at new Entertainment Complex
* Safety concerns for unsupervised children at Riverfront Park
* Additional benches at playground area at Riverfront Park
* Hike and Bike Trail Status
There being no other business, the Budget Summit adjourned at 12:45 p.m.
David Moore, Mayor
Barbara Liming, City Clerk
Minutes; May 19,2000;Page 2
City of Beaumont, Texas
Mission
WORKING TOGETHER FOR A BETTER BEAUMONT
Providing our community with quality service
through courteous and dedicated employees
Guiding Principles
Integrity Doing the right thing all of the time
Communication Sharing information with each other'and those we serve
accountability Being responsible for our actions
Respect Treating each other with dignity and valuing our diversity
Empowerment Having the ability and commitment to act in the public interest
"Creating value in public service"
EXHIBIT "A"
2000 BUDGET SUMMIT
FRIDAY, MAY 19, 2000
8:00 A.M. - 3:00 P.M.
THE GARDEN CENTER at TYRRELL PARK
CITY COUNCIL ADMINISTRATION
David W. Moore, Mayor Stephen J. Bonczek, City Manager
Guy Goodson, Mayor Pro-Tem Lane Nichols, City Attorney
Becky Ames, At Large Barbara Liming, City Clerk
Andrew P. Cokinos, At Large Kyle Hayes, Exec. Assistant to the City
Dr. Lulu Smith, Ward I Manager/Economic Development Director
Audwin Samuel, Ward III Sue Dismukes, Acting Human Resources Director
Bobbie J. Patterson, Ward IV Kirby Richard, Central Services Director
Beverly Hodges, Finance Officer
Tom Scofield, Police Chief
Michel Bertrand, Fire Chief
Ingrid Holmes, Public Health Director
Tom Warner, Public Works Director
Maurine Gray, Library Director
Luke Jackson, Parks & Recreation Director
John Labrie, Clean Community Director
FACILITATOR
Stephen J. Bonczek
City Manager
2000 Budget Summit
Friday, May 19, 2000
Sam- 2pm
Location: The Garden Center @ Tyrrell Park
Facilitator: Stephen J. Bonczek
Purpose
• To discuss strategic financial issues facing the City
• To identify alternative courses of action for addressing the issues;and
• To provide direction for the development of the 2001 City Budget
Introduction
• Purpose of the Summit
• Mayor/Council and Administration Expectations
The City's Current Fiscal Situation
Financial Report and Analysis Seven Months(October 1999 - April 2000)
• Comparative Financial Analysis
• General Fund
• Water Utilities Fund
• Solid Waste Fund
• Debt Service Fund
• HUD Section 108 Projects- Status Report
The City's Projected Financial Situation: Year End 2000
• Good News/Bad News 1999-2000
• Alternative Courses of Action to Enhance Revenues and/or Reduce Expenditures
• Financial and Budgetary Challenges
• Ideas That Save Costs and Increase Revenue/Service Quality
• Feasibility of Implementation- Discussion
The City's Long-Term Outlook
• Ten Year Revenue and Expenditure Projections(2000-2009)
• Capital Improvement Program
• Stonmwater Utility
BREAK
Dress: Casual Food/Refreshments: To be provided
Participants: Mayor/City Council, City Manager and Department Directors
2000 BUDGET SUMMIT
MISSION
This meeting is planned to provide a forum for the Mayor/City Council and Administration
to achieve consensus on major financial/budgetary policy issues facing the community in
FY2001 and then for Council to provide direction to the Administration.
ROLE OF MAYOR AND COUNCIL
The Mayor and Council will discuss issues of concern and assisting the facilitator in bringing
the discussion to an agreed upon closure. This closure will provide the Administration with
operational direction in preparation of the FY2001 budget.
ROLE OF ADMINISTRATION
The City Manager and Department Directors are present for the purpose of providing the
Mayor and Council with information when required,to clarify discussions and to participate
in the dialogue as appropriate.
ROLE OF FACILITATOR
The City Manager as facilitator will provide a brief introduction on the issue resolution
process, then direct discussion along the lines of the agenda stimulating participation from
the Mayor,members of Council and the Administration while assisting in bringing discussion
to closure.
2000 Budget Summit
Friday, May 19, 2000
Sam- 2pm
Location: The Garden Center @ Tyrrell Park
Facilitator: Stephen J. Bonczek
The City's 2001 Budget
• The Budget Development Process
• The Timetable for Budget Development
• The Role of the Financial Improvement Team(FIT)
• Advise/Discussion on the Budget's General Direction
• Strategic Action Plan
• Issues
• Stormwater Utility Study- Presentation
• 20 Year Retirement
• Compensation Study
• Water and Wastewater Capital Improvements
• Property Tax
• Shift 2 cents from General Fund to Debt Service
• Appraised Values
• Solid Waste
• In Lieu Payment
• Recycling
• Economic Development Incentive
• Expansion of Municipal Court Services
• Wading Pools
• Use of Fund Balance
Dress: Casual Food/Refreshments: To be provided
Participants: Mayor/City Council, City Manager and Department Directors
M 0 N T- H L Y
Finance Department
R E -P 0 R T
April 2000
Accounting EMS collections for the month of
INSIDEThe financial report for the month April were$154,232. The total
Accounting .. ... .. . . . of April is submitted with this number of billings for the month
Budget/Grant Administration. .. ... . .. • . report. Audit adjustments have were 734. The additional
Cash Management.. • .. . . ... . . .. . .. .. been recorded and beginning fund temporary staff have achieved a
Monthly Financial Report . . . . .. .... .. . 1 , current status on the billing
balances reflect audit balances. process and should sustain a level
Other continents appear under of revenue equal to $125,000-
"Monthly Financial Report." 135,000 a month The percent
collected to gross billed exceeded
Budget/Grant 55% for the first time this month.
Administration
Monthly Financial
The Budget Manual is complete Report
and has been distributed. This P
document will provide the basis for T Monthly Financial Report for
budget development and serve as a the month ended April 30, 2000, is
tool for department/divisions to submitted along with highlights
prepare and submit their annual where applicable. It is the seventh
budget requests. month of the fiscal period and
beginning balances have been
The Budget Summit has been adjusted to reflect FY99 year-end
rescheduled for May 19, 2000. audit adjustments. Preliminary
This meeting will be a strategy projections have been established
session to discuss programs and and will be reviewed and modified
alternative scenarios with Council on a monthly basis.
and the management team to form
a basis for the FY 2001 Budget. GENERAL FUND
An agenda has been formulated Revenues of over$3.SM were
and a document produced to received during the month. The
provide a forum for discussion at majority of the current month
the Summit. receipts were Sales and Use Tax.
Finance Department The projection for that category
City of Beaumont was previous projected in excess
Cash Management of budget and has now been
Beverly Hodges, Finance One new loan was submitted to the adjusted to reflect the original
Off tcer Committee during the month. A budget.
Kandy Daniel, Treasurer payment agreement was approved
Andrea Deaton, Budget for Baskets&Things. The revenue projection for
Officer Charges For Services has been
Paula LaMe, Controller increased to reflect successful
1
■ March 2000 finance Depar' nt
collection efforts. GENERAL IMPROVEMENTS
FUND
Some departments(Fire and Public Municipal Court has been
Health) are currently projected to completed and removed as an
exceed budget but should be offset active project.
by projected savings in other areas
and increased revenue collections. WATER UTILITIES
It is anticipated that ending fund IMPROVEMENT FUND
balance will net a reduction of The Freese-Nichols Water Study
approximately$550,000 by year has been added as an active project
end. with a budget of$48,000.
HOTEL OCCUPANCY TAX CASH AND INVESTMENTS
FUND Cash and investments total
HOT revenues are lagging $44.8M. This compares to $34.7M
previous years receipts by as of the same period for fiscal
approximately 5%at this time. If year 1999. Investment revenue
the trend continues it will result in earned year-to-date totals
a deficit balance at the end of the $1,405,153 compared to
year if expenditures are not held in $1,074,260 for fiscal year 1999.
check to offset the projected loss The year-to-date average yield on
of revenue.A monthly review of sold or maturing investments for
the status of all hotellmotel fiscal year 2000 is 5.27%
receipts in the area will be compared to 1999's average yield
monitored and adjustments to the of 5.46%. The City's current
projection shall be recorded in the investment portfolio is providing
third quarter if appropriate. an average yield of 5.82% with an
average maturity of 240 days at
EMPLOYEE BENEFITS FUND April 30, 2000,
The City began using a new
prescription drug service on
January 1,2000. Although four
months have passed there has been
a lag in the billing for the new
company(Eckerd's)which has
resulted in an under reporting of
expenses for the Health
Prescription category. The first
payment is expected to be
processed in May.
Short-term Disability payments
have exceeded budget due to the
number of long-term employees
retiring and/or resigning.
Genera[ Fund
3
_ CITY OF BEAUMONT
GENERALFUND
BALANCE SHEET
April 30, 2000
AVAILABLE RESOURCES CLAIMS ON AVAILABLE RESOURCES
Assets Liabilities
Cash $ 17,413,135 Accounts Payable _ $ 2,924
Delinquent Taxes Receivable(Net) 2,098,888 Accrued Wages Payable 1,656,278
Inventories 30,612 Clearing Accounts 418,058
Prepaid Expenses 63,263 Deferred Property Taxes 2,040,368
Deposits 24,023
4,141,651
Fund Balance
Reserved for Inventories 30,612
Reserved for Contingencies 1,500,000
Unreserved 13,933,635
15,464,247
TOTAL AVAILABLE RESOURCES $ 19,605,898 TOTAL CLAIMS ON RESOURCES $ 19,605,898
4
CITY OF BEAUMONT
GENERAL FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
For the seven months ended April 30,2000
Favorable/
(Unfavorable)
FYE 2000 Year-End
Current Actual Projected at Projection to
Month Year To Date 04/30/00 Budget Budget
REVENUES
Sales and Use Tax $ 2,059,355 $ 13,658,057 $ 26,365,000 26,365,000 $ --
Property Taxes 127,563 12,538,669 13,095,000 13,095,000 --
Industrial Tax Payments -- 10,969,064 10,969,064 10,949,000 20,064
Gross Receipts Tax 206,187 1,415,502 5,427,000 5,507,000 (80,000)
Utility Fund in Lieu 304,167 2,129,167 3,650,000 3,650,000 --
Fines and Forfeits 143,584 1,050,280 1,697,000 1,647,000 50,000
Charges for Services 219,510 1,290,989 2,136,000 1,436,000 700,000
Culture and Recreational 63,895 493,506 701,000 701,000 --
Licenses and Permits 110,351 524,877 741,900 651,900 90,000
Interest Earnings 70,631 350,367 550,000 550,000 --
Intergovernmental Revenue 160 1,000 1,000 --
Miscellaneous Revenue 234,686 438,553 695,300 591,800 103,500
TOTAL REVENUES 3,539,929 44,859,191 66,028,264 65,144,700 883,564
EXPENDITURES
Police 1,355,937 10,199,872 17,980,600 17,980,600 --
Fire 1,009,567 7,572,654 13,265,800 13,115,800 (150,000)
Public Works 678,907 4,960,724 9,220,300 9,320,300 100,000
Central Services 483,036 3,600,034 6,307,200 6,407,200 100,000
General Government 280,236 2,310,092 4,123,000 4,173,000 50,000
Public Health 309,880 2,270,675 4,232,400 3,882,400 (350,000)
Parks and Recreation 202,122 1,465,877 2,842,800 2,842,800 --
Library 134,506 1,014,277 1,823,800 1,823,800 --
Finance 88,319 638,695 1,121,100 1,146,100 25,000
Special Purpose 463,967 3,277,767 5,597,600 5,597,600 --
TOTAL EXPENDITURES 5,006,477 37,310,667 66,514,600 66,289,600 (225,000)
EXCESS REVENUES OVER "
(UNDER)EXPENDITURES (1,466,548) 7,548,524 (486,336) (1,144,900) 658,564
FUND BALANCE
Beginning Fund Balance 16,930,794 7,915,722 7,915,722 7,635,048 280,674
Ending Fund Balance $ 15,464,246 $ 15,464,246 $ 7,429,386 6,490,148 $ 939,238
5
CITY OF BEAUMONT
GENERALFUND
REVENUE SUMMARY
For the seven months ended April 30,2000
FY 2000 FY 2000
FY 2000 Estimate at Actual at Over/(Under)
REVENUES Budget 04/30/00 04/30/00 Estimate
Sales and use tax 26,365,000 13,339,228 13,658,056 318,828
Property taxes 13,095,000 12,584,430 12,538,669 (45,761)
Industrial payments 10,949,000 10,949,000 10,969,064 20,064
Gross receipts tax 5,507,000 1,434,291 1,415,502 (18,789)
Utility fund in lieu 3,650,000 2,128,315 2,129,167 852
Fines and forfeits 1,647,000 938,609 1,050,280 111,671
Charges for services 1,436,000 757,812 1,290,988 533,176
Culture&Recreational 701,000 442,155 493,506 51,351
Licenses and permits 651,900 445,345 524,877 79,532
Interest earnings 550,000 323,950 350,367 26,417
Intergovernmental rev. 1,000 94 160 66
Miscellaneous revenue 591,800 367,299 438,553 71,254
TOTAL REVENUES 65,144,700 43,710,528 44,859,189 1,148,661
MONTHLY CASH FLOW
Beginning Ending
Cash Balance Receipts Disbursements Cash Balance
October 8,033,099 2,861,332 4,727,840 6,166,591
November 6,166,591 4,253,444 5,643,995 4,776,039
December 4,776,039 6,888,078 ,. 7,397,413 4,266,704
January 4,266,704 18,948,800 5,329,036 17,886,468
February 17,886,468 7,208,561 5,405,588 19,689,441
March 19,689,441 5,099,939 5,760,982 19,028,399
April 19,028,399 4,003,897 5,619,160 17,413,136
May 17,413,136 3,567,312 5,524,133 15,456,315
June 15,456,315 2,885,397 5,524,133 12,817,579
July 12,817,579 6,432,643 5,524,133 13,726,089
August 13,726,089 3,654,185 5,524,133 11,856,141
September 11,856,141 3,163,899 5,524,137 9,495,903
68.967.488 67.504.683
Estimated
6
Enterprise Funds
CITY OF BEAUMONT
WATER FUND
BALANCE SHEET
April 30,2000
AVAILABLE RESOURCES CLAIMS ON AVAILABLE RESOURCES
Assets Liabilities
Cash $ 2,576,839 Escheat Clearing _ $ 9,609
Utilities Receivable(Net) 1,462,032 Accounts Payable 12,641
Other Receivables -- Accrued Wages Payable 179,200
Inventories 703,636 Customer Deposits _ 619,825
821,275
Fund Balance
Reserve, Receivables 1,462,032
Reserve, Inventories 703,636
Unreserved 1,755,564
3,921,232
TOTAL AVAILABLE RESOURCES $ 4.742.507 TOTAL CLAIMS ON RESOURCES $ 4,742.507
8
CITY OF BEAUMONT
WATER FUND
STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND BALANCE
For the seven months ended April 30,2000
Favorable/
FYE 2000 (Unfavorable)
Current Actual Projected at Year-End to
Month Year To Date 04/30/2000 Budget - Budget
REVENUES
Residential Water $ 684,898 4,829,506 8,820,000 8,820,000
Residential Sewer 479,828 3,221,020 5,799,000 5,799,000
Major Accounts 315,707 2,283,144 4,100,000 4,100,000
Service Charges 51,102 363,215 575,000 531,000 44,000
Interest Earnings 10,004 88,789 150,000 120,000 30,000
Miscellaneous Revenue 5,963 604,180 610,000 30,000 580,000
TOTAL REVENUES 1,547,502 11,389,854 20,054,000 19,400,000 654,000
EXPENSE CATEGORY
Operating
Sewer Maintenance 179,447 1,253,154 2,184,000 2,184,000
Production 178,349 1,115,350 2,117,700 2,117,700
Distribution 168,851 1,340,015 2,135,400 2,135,400
Reclamation 113,143 798,608 1,533,600 1,533,600
Customer Service 66,638 557,083 972,100 972,100 -
Administration 35,755 327,106 742,600 742,600 -_
Non-Operating
Debt Service -- 1,415,440 4,775,000 4,775,000 _-
Payments in Lieu of Taxes 304,167 2,129,167 3,650,000 3,650,000
Other 90,530 901,011 1,400,600 1,239,600 (161,000)
TOTAL EXPENSES 1,136,880 9,836,934 19,511,000 19,350,000 _ (161,000}
EXCESS(DEFICIT)REVENUES
OVER EXPENSES 410,622 1,552,920 543,000 50,000 493,000
FUND BALANCE
Beginning Fund Balance 3,510,610 2,368,312 2,368,312 2,617,533 249,2
Ending Fund Balance $ 3.921,232 3,921,232 2,911,312 2.667,533 243.779
Note: Major Accounts consist of all customers in a given month with total Water and Sewer charges over$2,500.
9
CITY OF BEAUMONT
SOLID WASTE FUND
BALANCE SHEET
April 30,2000
AVAILABLE RESOURCES CLAIMS ON AVAILABLE RESOURCES
Assets Liabilities
Cash $ 3,546,904 Accounts Payable $ 32,889
Utilities Receivable(Net) 648,277 State Disposal Fees Payable 67,448
Other Receivables 101,474 Accrued Wages Payable 80,820
181,157
Fund Balance
Reserve, Receivables 749,751
Unreserved 3,365,747
4,115,498
TOTAL AVAILABLE RESOURCES $ 4.296.655 TOTAL CLAIMS ON RESOURCES $ 4296-655
10
CITY OF BEAUMONT
SOLID WASTE FUND
STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND BALANCE
For the seven months ended April 30,2000
Favorable/
FYE 2000 (Unfavorable)
Current Actual Projected at Year-End to
Month Year To Date 04130/2000 Budget Budget
REVENUES
Residential Collections $ 384,593 2,689,087 4,635,000 4,635,000 -
Landfill Fees, 69,379 507,499 850,000 702,000 148,000
Interest Earnings 13,550 108,559 165,000 150,000 15,000
Clean Community Fees 26,009 185,181 329,000 329,000
Recycling 6,456 41,552 45,000 30,000 15,000
Miscellaneous Revenue 1,568 29,562 30,000 10,000 20,000
TOTAL REVENUES 501,555 3,561,440 6,054,000 5,856,000 198,000
EXPENSE CATEGORY
Operating
Landfill Operations 71,781 485,135 1,008,300 1,008,300 --
Yard Waste Collections 85,396 732,516 1,230,900 1,230,900 --
Residential 84,717 585,258 1,033,400 1,033,400 _
Recycling 17,421 151,648 282,400 282,400 -
Neighborhood Services 62,540 466,550 816,200 916,200 100,000
Grass Cutting 8,142 23,442 100,000 -- (100,000)
Administration 34,147 224,323 491,700 491,700 -
Non-Operating
Debt Service 56,594 515,031 524,500 585,600 61,100
Transfers To Other Funds 34,667 242,667 416,000 416,000 --
Other 69,081 146,855 348,800 283,800 (65,000)
TOTAL EXPENSES 524,486 3,573,425 6,252,200 6,248,300 (3,900)
EXCESS(DEFICIT)REVENUES
OVER EXPENSES (22,931) (11,985) (198,200) (392,300) 194,100
FUND BALANCE
Beginning Fund Balance 4,138,429 4,127,483 4,127,483 3,746,051 381,432
Ending Fund Balance $ 4, 15.1498 4.115,498 3.929,283 3,353.751 575.532
11
CITY OF BEAUMONT
HOTEL OCCUPANCY TAX FUND
BALANCE SHEET
April 30,2000
AVAILABLE RESOURCES CLAIMS ON AVAILABLE RESOURCES
Assets Liabilities
Cash $ 193,476 Accounts Payable _ $
Accrued Wages Payable 15,888
15,888
Fund Balance, Unreserved 177,588
TOTAL AVAILABLE RESOURCES $ 193,476 TOTAL CLAIMS ON RESOURCES $ 193,476
14
Specie Revenue Funds
13
CITY OF BEAUMONT
-" HOTEL OCCUPANCY TAX FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
For the seven months ended April 30,2000
Favorable/
(Unfavorable)
FYE 2000 Year-End
Current Actual Projected at Projection to
Month Year To Date 04/30/00 Budget Budget
REVENUES
Hotel/Motel Tax $ 296,353 1,047,373 1,728,000 1,765,000 (37,000)
Interest Earnings 176 5,078 10,000 12,000 (2,000)
Miscellaneous Revenue 217 1,638 3,000 3,000
TOTAL REVENUES 296,746 1,054,089 1,741,000 1,780,000 (39,000)
EXPENDITURE CATEGORY
Convention and Visitors Bureau 57,439 378,385 803,400 803,400 --
Convention Facilities 56,059 224,365 441,500 441,500 -_
Designated Programs 32,217 420,217 592,000 592,000 --
Special Activities -- --- 50,000 50,000 --
TOTAL EXPENDITURES 145,715 1,022,967 1,886,900 1,886,900
EXCESS REVENUES OVER
(UNDER) EXPENDITURES 151,031 31,122 (145,900) (106,900) (39,000)
FUND BALANCE
Beginning Fund Balance 26,557 146,466 146,466 166,188 (19,722)
Ending Fund Balance $ 177,588 177,588 566 59,288 (58,722)
15
CITY OF BEAUMONT
STREET MAINTENANCE FUND
BALANCE SHEET
April 30,2000
AVAILABLE RESOURCES CLAIMS ON AVAILABLE RESOURCES
Assets Liabilities
Cash $ 674,397 Accounts Payable $ -_
Utilities Receivable(Net) 199,818
Due from state 8,914
Fund Balance
Reserved for Encumbrances 327,899
Reserved for Receivables 208,732
Unreserved 346,498
883,129
TOTAL AVAILABLE RESOURCES $ 883,129 TOTAL CLAIMS ON RESOURCES $ 883,129
16
CITY OF BEAUMONT
' STREET MAINTENANCE FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
For the seven months ended April 30,2000
Favorable/
(Unfavorable)
FYE 2000 Year-End
Current Actual Projected at _ Projection to
Month Year To Date 04/30/00 Budget_ Budget
REVENUES
Charges for Services $ 122,833 877,643 1,470,000 1,465,000 5,000
Interest Earnings 2,370 21,030 30,000 20,000 10,000
TOTAL REVENUES 125,203 898,673 _ 1,500,000 1,485,000 15,000
EXPENDITURE CATEGORY
Street Rehabilitation 81,071 1,280,238 2,500,000 2,800,000 300,000
TOTAL EXPENDITURES 81,071 1,280,238 2,500,000 2,800,000 300,000
EXCESS REVENUES OVER
(UNDER)EXPENDITURES 44,132 (381,565) (1,000,000) (1,315,000) 315,000
FUND BALANCE
Beginning Fund Balance 838,997 1,264,694 1,264,694 1,364,463 (99,769)
Ending Fund Balance $ 883.129 883,129 264.694 49.463 215.231
Note: Total expenditures include actual outstanding purchase orders and future purchase orders necessary for
completion of projects. Actual purchase orders as of April 30,2000 were$327,899_
17
CITY OF BEAUMONT
MUNICIPAL TRANSIT FUND
BALANCE SHEET
April 30,2000
AVAILABLE RESOURCES CLAIMS ON AVAILABLE RESOURCES
Assets Liabilities
Cash $ -- Accounts Payable $ --
Due from Other Governments 1,028,023 Due to Other Funds 462,347
462,347
Fund Balance
Fund Balance, Unreserved (283,824)
Equity in Bmt Municipal Transit Co. 186,769
Reserved for Encumbrances 662,731
565,676
TOTAL AVAILABLE RESOURCES $ 1,028,023 TOTAL CLAIMS ON RESOURCES $ 1,028,023
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CITY OF BEAUMONT
MUNICIPAL TRANSIT FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCE
For the seven months ended April 30,2000
Favorable/
(Unfavorable)
FYE 2000 Year-End
Current Actual Projected at - Projection to
Month Year To Date 04/30/00 Budget Budget
REVENUES
Service Charges $ 42,040 322,429 550,000 520,000 30,000
Intergovernmental Revenue 218,041 1,298,953 2,210,700 2,210,700 --
Interest -- 4,440 10,000 10,000 --
Miscellaneous Revenue 1,750 15,700 21,000 21,000
Transfer from General Fund 41,667 291,667 500,000 500,000 --
TOTAL REVENUES 303,498 1,933,189 3,291,700 3,261,700 30,000
EXPENDITURE CATEGORY
Contract Services 247,016 1,707,007 2,800,000 2,800,000
Capital Improvements 145,537 187,009 750,000 750,000 --
TOTAL EXPENDITURES 392,553 1,894,016 3,550,000 3,550,000 --
-XCESS(DEFICIT)REVENUES
OVER EXPENDITURES (89,055) 39,173 (258,300) (288,300) 30,000
FUND BALANCE
Beginning Fund Balance 654,731 526,503 526,503 582,461 (55,958)
Ending Fund Balance $ 565,676 565,676 268,203 294,161 (25,958)
19
Internal Service Funds
21
CITY OF BEAUMONT
CAPITAL RESERVE FUND
BALANCE SHEET
April 30,2000
AVAILABLE RESOURCES CLAIMS ON AVAILABLE RESOURCES
Assets Liabilities
Cash $ 1,762,804 Accounts Payable $ 478
478
Fund Balance, Unreserved 1,762,326
TOTAL AVAILABLE RESOURCES $ 1,762,804 TOTAL CLAIMS ON RESOURCES $ 11762,804
STATEMENT OF CASH FLOW
For the seven months ended April 30,2000
Current
Month Year To Date
Cash Flow from Operating Activities
Cash Received from Charges for Services $ 144,472 1,203,300
Cash Paid to Suppliers -- (208,883)
144,472 994,4--
Cash Flow from Capital and Related Financing Activities
Proceeds from Issuing Debt 452,317 452,317
Principal Retirement and Interest Charges -- (172,058)
Acquisition of Capital Assets (82,010) (1,377,911)
370,307 (1,097,652)
Cash Flow from Investing Activities
Interest Earnings 6,342 58,126
Net Cash Flow 521,121 (45,109)
CASH BALANCE
Beginning Cash Balance 1,241,683 1,807,913
Ending Cash Balance $ 1,762,804 1,762,804
22
CITY OF BEAUMONT
CAPITAL RESERVE FUND
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
For the seven months ended April 30,2000
Favorable/
FYE 2000 (Unfavorable)
Current Actual Projected at Year-End to
Month Year To Date 04/30/2000 Budget Budget
REVENUES
Charges for Services $ 125,358 877,508 1,504,300 1,510,400 (6,100)
Interest Earnings 6,342 46,295 70,000 70,000 --
Transfers from Other Funds 46,542 325,792 558,500 558,500 --
Proceeds from Capital Leases 452,317 452,317 452,317 -- 452,317
Miscellaneous Revenue (27,428) -- 40,000 40,000 --
TOTAL REVENUES 603,131 1,701,912 2,625,117 2,178,900 446,217
EXPENSE CATEGORY
CapitalOutlay-Equipment 82,010 1,378,388 2,231,100 2,231,100 --
Capital Outlay-Critical Bldg -- 132,593 185,000 185,000 -
Debt Service -- 172,058 297,000 297,000 -
TOTAL EXPENSES 82,010 1,683,039 2,713,100 2,713,100 --
-XCESS(DEFICIT)REVENUES
OVER EXPENSES 521,121 18,873 (87,983) (534,200) 446,217
FUND BALANCE
Beginning Fund Balance 1,241,205 1,743,453 1,743,453 1,508,333 235,120
Ending Fund Balance $ 1,762,326 1,762,326 1,655,470 974,133 681,337
23
CITY OF BEAUMONT
FLEET FUND
BALANCE SHEET
April 30,2000
AVAILABLE RESOURCES CLAIMS ON AVAILABLE RESOURCES
Assets Liabilities _
Cash $ 310,038 Accounts Payable $ 27
Inventories 318,886 Accrued Wages Payable 35,997
Other Receivables -- _ 36,024_
Fund Balance
Reserved for inventories 318,886
Unreserved _ 274,014
592,900
TOTAL AVAILABLE RESOURCES $----.928_!124 TOTAL CLAIMS ON RESOURCES $-----Q28 924
STATEMENT OF CASH FLOW
For the seven months ended April 30,2000
Current
Month Year To Date
Cash Flow from Operating Activities
Cash Received from Charges for Services $ 311,533 2,257,982
Cash Paid to Suppliers (218,965) (1,339,1F
Cash Paid to Employees (90,037) (640,96
2,531 277,802
Cash Flow from Capital and Related Financing Activities
Cash to(from)Other Funds (10,625) (74,375)
Acquisition of Capital Assets (1,375) (8,341)
(12,000) (82,716}
Cash Flow from Investing Activities
Interest Earnings 604 1,502
Net Cash Flow (8,865) 196,588
CASH BALANCE
Beginning Cash Balance 318,903 113,450
Ending Cash Balance $ 310.038 310,038
24
CITY OF BEAUMONT
FLEET FUND
STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND BALANCE
For the seven months ended April 30,2000
Favorable/
FYE 2000 _ (Unfavorable)
Current Actual Projected at Year-End to
Month Year To Date 04/30/2000 Budget Budget
REVENUES
Charges for Services $ 311,533 2,256,253 3,691,500 3,691,500 --
Interest Earnings 604 1,502 3,000 3,000 --
Miscellaneous Revenue — 1,729 2,000 2,000 -
TOTAL REVENUES 312,137 2,259,484 3,696,500 3,696,500 --
EXPENSE CATEGORY
Personnel Costs 90,037 640,989 1,180,500 1,180,500 --
Operating Expenses 181,092 1,319,315 2,374,700 2,374,700 -
Capital Outlay 1,375 9,625 16,500 16,500 --
Transfers Out 10,625 74,375 127,500 127,500 --
TOTAL EXPENSES 283,129 2,044,304 3,699,200 3,699,200 --
EXCESS(DEFICIT)REVENUES
OVER EXPENSES 29,008 215,180 (2,700) (2,700) --
FUND BALANCE
Beginning Fund Balance 563,892 377,720 377,720 401,821 (24,101)
Ending Fund Balance $ 592.900 592.900 375.020 399.121 (24.1011
25
CITY OF BEAUMONT
EMPLOYEE BENEFITS FUND
BALANCE SHEET
April 30,2000
AVAILABLE RESOURCES CLAIMS ON AVAILABLE RESOURCES
Assets Liabilities
Cash $ 1,483,017 Escheat Clearing $ 23,010
Other Receivable Employee flex plan, suppl life&Itd 19,313
Accounts Payable 2,907
Accrued Wages Payable 14,200
59,430
Fund Balance, Unreserved 1,423,588
TOTAL AVAILABLE RESOURCES $ 1,483,017 TOTAL CLAIMS ON RESOURCES $ 1,483,017
STATEMENT OF CASH FLOW
For the seven months ended April 30,2000
Current
Month Year To Date
Cash Flow from Operating Activities
Cash Received from Charges for Services $ 826,209 5,778,77'
Cash Paid for Benefits&Services (579,721) (5,545,45
246,488 233,295
Cash Flow from Investing Activities
Interest Earnings 8,770 84,047
Net Cash Flow 255,258 317,342
CASH BALANCE
Beginning Cash Balance 1,227,759 1,165,675
Ending Cash Balance .• $__1,483,017 1,483,017
26
CITY OF BEAUMONT
EMPLOYEE BENEFITS FUND
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
For the seven months ended April 30,2000
Favorable/
(Unfavorable)
FYE 2000 _ Year-End
Current Actual Projected at Projection to
Month _ Year To Date 04/30/00 Budget Budget
REVENUES
Interdepartmental Transfers
Employee Health Ins $ 265,075 1,856,992 3,180,900 3,180,900 --
Dependent Health Ins 345,750 2,419,137 4,149,000 4,149,000 --
Worker's Comp. 82,500 577,500 990,000 990,000 --
General 22,300 156,100 267,600 267,600 -
Employee Contributions 98,547 660,144 1,132,000 1,132,000 --
Miscellaneous Revenue 12,037 108,903 120,000 -- 120,000
Interest Earnings 8,770 67,666 90,000 75,000 15,000
TOTAL REVENUES 834,979 5,846,442 9,929,500 9,794,500 135,000
EXPENSE CATEGORY
Health
Std Indemnity Plan 192,037 2,124,880 3,500,000 3,698,000 198,000
Managed Health Org. 250,716 1,741,291 3,000,000 3,200,000 200,000
Dental 41,638 336,315 517,000 517,000 --
Health Prescriptions -- 344,095 1,365,000 1,100,000 (265,000)
Other Benefits 14,625 51,164 85,000 85,000 --
Total 499,016 4,597,745 8,467,000 8,600,000 133,000
Worker's Compensation
Third Party Admin. 4,499 42,354 65,000 85,000 20,000
Claims Paid 28,386 457,296 800,000 820,000 20,000
Safety Management 4,417 33,099 58,900 58,900 --
Excess Insurance -- 26,667 27,000 25,000 (2,000)
Total 37,302 559,416 950,906• 988,900 38,000
General
Unemployment 10,592 37,546 40,000 20,000 (20,000)
Short-term Disability 23,559 268,688 384,000 250,000 (134,000)
Total 34,151 306,234 424,000 270,000 (154,000)
TOTAL EXPENSES 570,469 5,463,395 9,841,900 9,858,900 17,000
EXCESS(DEFICIT) REVENUES
OVER EXPENSES 264,510 383,047 87,600 (64,400) 152,000
FUND BALANCE
Beginning Fund Balance 1,159,078 1,040,541 1,040,541 770,270 270,271
Ending Fund Balance $ 1,423,588 1,423,588 1,128,141 705,870 422,271
27
CITY OF BF-AUMONT
GENERAL LIABILITY INSURANCE FUND
BALANCE SHEET
April 30,2000
AVAILABLE RESOURCES CLAIMS ON AVAILABLE RESOURCES
Assets Liabilities
Cash $ 1,318,103 Accounts Payable - $ --
Fund Balance
Reserved for Claims 800,000
Unreserved 518,103
1,318,103
TOTAL AVAILABLE RESOURCES $ 1.318.103 TOTAL CLAIMS ON RESOURCES $ 1.318,103
STATEMENT OF CASH FLOW
For the seven months ended April 30,2000
Current
Month Year To Date
Cash Flow from-Operating Activities
Cash Received from Charges for Services $ 50,726 350,851
Cash Paid for Claims X36,847 (345,41'
(86,121) 5,441
Cash Flow from Investing Activities
Interest Earnings 5,284 41,463
Net Cash Flow (80,837) 46,904
CASH BALANCE
Beginning Cash Balance 1,398,940 1,271,199
Ending Cash Balance .• $ 1,318 103 1.318,103
28
CITY OF BEAUMONT
GENERAL LIABILITY INSURANCE FUND
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
For the seven months ended April 30,2000
Favorable/
(Unfavorable)
FYE 2000 - Year-End
Current Actual Projected at Projection to
Month Year To Date 04130/00 Budget Budget
REVENUES
Interest Earnings $ 5,284 41,463 60,000 60,000 --
Interdepartmental Transfers 50,000 350,000 600,000 600,000 --
Miscellaneous Revenue 726 851 1,000 -- 1,000
TOTAL REVENUES 56,010 392,314 661,000 660,000 1,000
EXPENSE CATEGORY
Professional Services 4,033 47,258 100,000 100,000 --
Liability Claims 132,814 294,235 700,000 700,000 --
Other Insurance -- 3,476 4,000 4,000 --
TOTAL EXPENSES 136,847 344,969 804,000 804,000 --
EXCESS(DEFICIT)REVENUES
OVER EXPENSES (80,837) 47,345 (143,000) (144,000) 1,000
FUND BALANCE
Beginning Fund Balance 1,398,940 1,270,758 1,270,758 1,186,336 84,422
Ending Fund Balance $ 1.318.103 1.318.103 1,127.758 1.042.336 85.422_
29
Ca.pitaL Projects Funds
31
CITY OF BEAUMONT
GENERAL IMPROVEMENT FUND
BALANCE SHEET
April 30,2000
AVAILABLE RESOURCES CLAIMS ON AVAILABLE RESOURCES
Assets Liabilities
Cash $ 1,515,464 Accounts Payable $
Receivables 13,342
Fund Balance
Reserved for Construction 1,010,631
Reserved for Encumbrances 518,175
1,528,806
TOTAL AVAILABLE RESOURCES $ 1,528,806 TOTAL CLAIMS ON RESOURCES $ 1,528,806
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
For the seven months ended April 30, 2000
per General Ledger
Actual
To Date
Revenues $ 1,442,227
Expenditures 1,721,243
Excess(Deficit)Revenues
Over Expenditures (279,016)
Fund Balance
Beginning Fund Balance 1,807,822
Ending Fund Balance $ 1,528,806
FUNDING SUMMARY
April 30,2000
Project
Balance
Funds Available(On Hand/Receivable) $ 1,528,806
Available from TxDot 1,273,658
Available from CDBG 37,665
Total available $ 2,840,129
Balance available for future projects $ 516,039
32
CITY OF BEAUMONT
GENERAL IMPROVEMENT FUND
PROJECT EXPENDITURE REPORT
April 30,2000
Current
Project Expended Project
Budget To Date Balance (1)
EXPENDITURES
Fire Station Relocation 2,284,982 2,284,982 --
Perlstein Park 150,000 32,068 117,932
Fire Training Grounds Improv 1,360,000 1,332,403 27,597
Beaumont Yacht Club Improv 1,082-370 998,801 83,569
Ath.Complex-Softball Fields 1,543,200 1,539,548 3,652
Beaumont Municipal Airport 1,430,000 14,824 1,415,176
Theodore R.Johns Library 125,000 87,335 37,665
Parks Operations Facility 700,000 588,972 111,028
Police Station Renovations 300,000 44,370 255,630
Landfill Pipeline Improvement 410,000 138,159 271,841
TOTAL EXPENDITURES $ 9,385,552 7,061,462 2,324,090
Total project balance includes actual outstanding purchase orders and future purchase orders necessary for comple
projects. Actual purchase orders as of April 30 were $518,175.
Project Highlights
Construction of a new Fire Station#6 to replace the current facility.
Construction of a new Fire Station#3 to replace the current facility.
Construction of a new Fire Station#5 on Walden Road.
Construction of a new park in the Amelia neighborhood to be named Pedstein Park
Construction of a retention pond and drainage improvements to the Fire Training Grounds.
Construction of new Softball Fields at the Athletic Complex.
Improvements to Beaumont Yacht Club, including construction of new docks and stalls.
Extension of runways and rehabilitation of existing hangars and taxiways at the Beaumont Municipal Airport.
A grant from the state will provide 90%of the funding.
Construction of Theodore R.Johns Branch Library with funding from CDBG,Section 108.
Construction of Parks Operations facility on Langham Road near the Athletic Complex.
Renovation of the present Municipal Court building for Police Department use.
Relocation of pipelines at the Landfill.
33
CITY OF BEAUMONT
STREETS AND DRAINAGE IMPROVEMENTS
BALANCE SHEET
April 30,2000
AVAILABLE RESOURCES CLAIMS ON AVAILABLE RESOURCES
Assets Liabilities ,
Cash $ 8,549,608 Due to General Fund $ --
Receivables 720,077 Accounts Payable --
Fund Balance
Reserved for Construction 4,293,688
Reserved for Encumbrances 4,975,997
9,269,685
TOTAL AVAILABLE RESOURCES S 9,269,685 TOTAL CLAIMS ON RESOURCES $ 9,269,685
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
For the seven months ended April 30,2000
per General Ledger
Actual
To Date
Revenues 645,182
Expenditures 5,305,019
Excess(Deficit)Revenues
Over Expenditures (4,659,837)
Fund Balance '
Beginning Fund Balance 13,929,522
Ending Fund Balance $ 9,269,685
FUNDING SUMMARY
April 30,2000
Project
Balance
Funds Available(On Hand/Receivable) $ 9,269,685
Available from TxDOT 4,602,096
Required(Future) 8,277,757
Total $ 22,149,538
34
CITY OF BEAUMONT
STREETS AND DRAINAGE IMPROVEMENTS
PROJECT EXPENDITURE REPORT
April 30,2000
Current
Project Expended Project
Budget To Date Balance(1)
EXPENDITURES
Major Dr(Hwy 105 to Hwy 124) 4,000,000 1,339,658 2660,342
Concord I(IH 10 to Helena St.) 3,130,000 3,123,825 6,175
Concord II(Helena St.to RR) 8,970,000 1,886.582 7,083,418
Concord III(RR to East Lucas) 4,550,000 294,512 4,255,488
Neches River Hike&Bike Trail 3,000,000 363,471 2,636,529
Walden Road 8,069,100 6,087,655 1.981,445
Folsom(Dowlen to Major) 2,900,000 28,113 2,871.887
Franklin Street Widening 765,000 230,649 534,351
Ector Street Ditch 500,000 380,097 119,903
TOTAL EXPENDITURES $ 35,884,100 13,734,562 22,149,538
(1) Total project balance includes actual outstanding purchase orders and future purchase orders necessary for comple
projects. Actual purchase orders as of April 30, 2000 were$4,975,997.
Project Highlights
Relocation of utilities and purchase of rights-of-way on Major Dr from College to Hwy 124. The city's portion is
estimated at$800,000;the state will reimburse other costs up to total project cost of$4M.
Engineering, land acquisition and construction costs for the widening of Concord Road from IH 10 to Hwy 105.
Construction of a Hike and Bike Trail from Riverfront Park to Collier's Ferry Perk. The City's portion is estimated
at$600,000; the state will reimburse other costs up to total project cost of$3M.
Engineering and construction costs for the paving and drainage improvements on Walden Road from
Hwy 124 to Major Dr.
Construction of Folsom Rd from Dowlen Rd to Major Dr.
Reconstruction of Franklin Street between Neches and MLK Parkway.The City's portion is estimated at
$400,000;the state will reimburse other costs up to total project cost of$2M.
Improvements to Ector Street Ditch with equal participation and funding from TxDOT and DD6.
35
CITY OF BEAUMONT
WATER UTILITIES IMPROVEMENT FUND
BALANCE SHEET
April 30,2000
AVAILABLE RESOURCES CLAIMS ON AVAILABLE RESOURCES
Assets Liabilities
Cash $ -- Accounts Payable - $ --
Receivables -- Due to Other Funds 667,315
667,315_
Fund Balance
Reserved for Construction (794,997)
Reserved for Encumbrances 127,682
(667,315)
TOTAL AVAILABLE RESOURCES $ -- TOTAL CLAIMS ON RESOURCES $
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE
For the seven months ended April 30,2000
per General Ledger
Actual
To Date
Revenues $ --
Expenses 719,484
Excess(Deficit) Revenues
Over Expenses (719,484)
Fund Balance
Beginning Fund Balance 52,169
Ending Fund Balance $ (667,315)
FUNDING SUMMARY
April 30,2000
Project
Balance
Funds Available(On Hand/Receivable) $ (667,315)
Required(Future) 1,020,118
Total $ 352,803
36
CITY OF BEAUMONT
WATER UTILITIES IMPROVEMENT FUND
PROJECT EXPENSE REPORT
April 30,2000
Current
Project Expended Project
Estimate To Date Balance(1)
EXPENSES
Non-SRF Construction Projects
Water Supply Study $ 328,400 319,886 8,514
Rate Study 48,000 15,544 32,456_
Total Non-SRF 376,400 335,430 40,970
Line Relocations
Walden Rd 312,000 311,151 849
Concord Rd 183,000 144,762 38,238
Concord Rd Phase 2 432,600 165,300 267,300
Franklin St 75,000 69,554 5,446
Total Relocations 1,002,600 690,767 311,833
TOTAL EXPENSES $ 1.379.000 1.026.197 352.803
(1) Total expenditures include actual outstanding purchase orders and future purchase orders necessary for completion of
projects.Actual purchase orders as of April 30 were$127,682.
ojedt Highlights
Water Supply Study will bring City's water system in compliance with new drinking water standards.
A water and wastewater Rate Study will be conducted for the City by Freese-Nichols, Inc.
Line Relocations consist of water and sewer line relocations or improvements due to the Walden Rd street widening
project,the Concord Rd street widening project(Phases I&11),and the Franklin St street widening project.
37
i
Cash {
Investments
- i
t
t
E
f
i
a
i
39
CITY OF BEAUMONT
STATEMENT OF CASH POSITION
April 30,2000
Current Prior _ Increase/
Year Year (Decrease)
Balance" Balance` FY 1999-2000
C-BALANCES CLASSIFIED BY FUND
General Fund 17,413,136 15,441,784 1,971,352
Hotel Occupancy Tax Fund 193,475 277,710 (84,235)
Municipal Airport Fund 56,831 35,124 21,707
Texas Motor Carrier Violation Fund 4,193 -- 4,193
Municipal Court Security Fund 31,555 13,708 17,847
Municipal Court Tech Fund 59,742 -- 59,742
Miscellaneous Grant Fund (440) (6,938) 6,498
ISTEA Grant Fund 2 585 (583)
Police Grant Fund (158,370) (133,081) (25,289)
Tax Increment Financing Fund 259,625 57,315 202,310
Health Grants Fund (166,449) (168,837) 2,388
C_D.B.G. Program Fund (319,212) (730,987) 411,775
Shelter Plus Care Grant Fund (36,388) (5,737) (30,651)
Emergency Shelter Grant Fund (56,404) (34,309) ("' 195)
Home Fund (331,574) (535,566) 2 92
Revolving Loan Fund 150,514 156,070 (5,556)
Rental Rehab Fund 205,848 188,921 16,927
HUD Sec 108 Loan Fund 120,145 -- 120,145
Confiscated Goods Fund 1,269,719 671,474 598,245
Local Law Enforcement Bg Fund 513,378 511,408 1,970
Weed& Seed Fund (97,715) (67,695) (30,020)
Street Maintenance Fund 674,398 521,682 152,716
Fire Training Grounds Fund 5,456 (39,669) 45,125
Transit Fund (462,347) 4,239 (466,586)
Debt Service Fund 4,118,676 5,439,174 (1,320,497)
Water Utilities Fund 2,576,840 2,294,751 282,089
Solid Waste Fund 3,546,904 3,357,027 189.877
General Improvements Fund 1,515,464 826,486 688,978
Street and Drainage Improvement Fund 6,549,607 696,040 7,853,567
Water Utilities Improvement Fund (667,314) 480,452 (1,147,766)
Capital Reserve fund 1,762,804 2,515,016 (752,211)
Fleet Maintenance Fund 310,039 313,424 (3,385)
Employee Benefits Fund 1,483,017 974,557 508,461
General Liability Fund 1,318,101 1,174,768 143,334
'Reflects general ledger(book)balances and may differ from investment report due to uncollected items or items in transit.
(continued)
40
-- CITY OF BEAUMONT
STATEMENT OF CASH POSITION
April 30,2000
(continued)
Current Prior Increase!
Year Year (Decrease)
Balance* Balance* FY 1999-2000
BALANCES CLASSIFIED BY FUND
Julie Rogers Trust Fund 203,102 193,296 9,806
Tyrrell Historical Trust Fund 20,465 19,477 988
Expendable Trust Fund 213,967 170,925 43,042
Library Trust Fund 48,257 51,313 (3,056)
Library Endowment Trust Fund 24,801 24,836 (35)
Payroll Fund 449,708 1,156 448,552
Historical Fire Museum Trust Fund 9,485 2,384 7,101
TOTAL ALL FUNDS 44,813,042 34,692,280 10,120,762
BALANCES CLASSIFIED BY FINANCIAL INSTITUTION
Petty Cash 12,717 12,617 100
Lamar Bank Cash -- 37,486 (37,486)
PrimeBank 2,946 3,025 (79)
Hibernia National Bank 2,318,946 3,298,805 (979,859)
TOTAL CASH 2,334,609 3,351,933 (1,017,324)
Texpool 4,332,964 9,371,192 (5,038,228)
Logic Investment Pool 6,222,947 5,877,251 345,696
U.S.Treasury Bills-Federal Reserve (book value) 1,942,069 1,998,557 (56,488)
U.S.Treasury Notes-Federal Reserve (book value) 29,980,454 14,093,347 15,887,107
TOTAL INVESTMENTS 42,478,433 31,340,347 11,138,086
TOTAL CASH AND INVESTMENTS 44,813,042 .• 34,692,280 10,120,762
Aeflects general ledger(book)balances and may differ from investment report due to uncollected items or items in transit.
(concluded)
41
CITY OF BEAUMONT
SCHEDULE OF INVESTMENT POSITION
April 30,2000
Face Principal Book Unrealized
Amount Invested Value - Earnings
CONSOLIDATED INVESTMENTS
U.S.Treasury Bills 2,000,000 1,915,348 1,942,069 26,721
U.S.Treasury Notes 28,000,000 27,970,547 27,977,362 400,111
Overnight Investments'
Prime Bank 2,946 2,946 2,946 0
Hibernia National Bank 2,167,978 2,167,978 2,167,978 298
Logic Investment Pool 5,469,645 5,469,645 5,469,645 889
TexPool 3,632,649 3,632,649 3,632,649 604
41,273,219 41,159,114 41,192,649 428,623
RESTRICTED INVESTMENTS"
U.S.Treasury Notes 2,000,000 2,008,086 2,003,092 16,066
Overnight Investments
Hibernia National Bank 541,369 541,369 541,369 74
Logic Investment Pool 753,301 753,301 753,301 122
TexPool 700,314 700,314 700,314 117
3,994,985 4,003,071 3,998,077 16,379
45,268,203 45,162,185 45,190,726 445,002
Reflects collected balances at month end. Will vary slightly from general ledger balances due to items in transit.
Includes Debt Service Fund, and Prior Lien Interest&Sinking Fund.
42
,. CITY OF BEAUMONT
SUMMARY OF INVESTMENT POSITION AND INTEREST INCOME
April 30,2000
INVESTMENTS BY TYPE Face
Amount Percentage
U.S_Treasury Bills 2,000,000 4.421/6
U.S.Treasury Notes 30,000,000 66.27%
Local Government Investment Pools 10,555,910 23.32%
Bank Deposits 2,712,293 5.99%
45,268,203 100.00%
Current Year Prior Year
Weighted Average Yield of Portfolio 5.816% 4.984%
Weighted Average Maturity of Portfolio 240 63
INVESTMENT MATURITY SCHEDULE Face
Amount Percentage
Less Than 3 Months 14,268,203 31.52%
3 Months To 6 Months 6,000,000 13.25%
6 Months To 9 Months 6,000,000 13.25%
9 Months To 12 Months 5,000,000 11.05%
1 Year to 2 Years 14,000,000 30.93%
45,268,203 100.00%
INTEREST INCOME Increase/
Current Prior (Decrease)
Year Year FY 1999-2000
Total Unrealized Earnings 445,002 167,144 277,858
Realized Interest Income 960,151 907,116 53,035
Total Earnings 1,405,153 1,074,260 330,893
43
CITY OF BEAUMONT
SCHEDULE OF PURCHASES,SALES AND MATURITIES
April 30, 2000
SCHEDULE OF SALES AND MATURITIES
Purchase Face Principal
Date Description Amount Invested Sale Price
04/01/00 Texpool 04/30/00 1,000,000 1,000,000 1,000,000
1,000,000 1,000,000 1,-600,000
Summary Of SalgiAnd MpAu it eaLTo Date;
Current Year Prior Year
Average Holding Period Yield 5.268% 5.456%
Market Gain/(Loss) — --
44
CITY OF BEAUMONT
SCHEDULE OF COLLATERAL
April 30,2000
Face Market Total
Description Amount Value Investments '
L PRIMEBANK
FDIC 100,000 100,000 2,946
HIBERNIA NATIONAL BANK
FHLMC 6.500 03/01/14 Cusip# 1294JV47 4,679,967 4,479,196
FNMA 6.494 11/01/28 Cusip#31382LPL4 1,774,223 1,727,224
FDIC 100,000 100,000
6,554,189 6,306,420 2,709,347
6,654,189 6,406,420 2,712,293
Reflects ledger balances at month end for the purpose of evaluating pledged collateral.
45
Total Revenues
at 04130
$50
$40
cn $30 ' i ❑ 1998
❑ 1999
_ _. ..--- - - ------- � ■ 2000
$20
$10
$0
General Water Solid Waste
Fund Fund Fund
47
Total Expenditures
At 04/30
$40
i
$30
❑ 1998
o` ❑ 1999
$20
-- - --- ----- — _� �, 02000
I
$10
i
- i
$0
General Water Solid Waste
Fund Fund Fund
48
Fund Balance
At 04/30
$20
$15
❑ 1998
° ❑ 1999
$10
02000
$5
$0
General Water Solid Waste
Fund Fund Fund
49
Fiscal-Year End Fund Balance
$10
$8
$6 ❑ 1998 Actual
° 1 ❑ 1999 Actual
s 2000 Projected
$4
i
$2
$0
General Water Solid Waste
Fund Fund Fund
50
DEBT SERVICE FUND
iF-
Fund Balance
No two cent shift in tax rate from General Fund
4
F7
h 0
0
2 -2i..
-4
I
i
- - — -- — j
2000 2001 2002 2003 2004 1
FFund Balance
Two cent shift in tax rate from General Fund
1 4 � - —
i
3 :.
j
2 ;
I c j
� I
0
I
i
j -1
i
j -2 - - - -
2000 2001 2002 2003 2004
The assumption used in this presentation includes the issuance of$20M in Certificates of
obligation in early FY 2001 and FY 2003 and assessed value (AV) growth of 3.75% in FY 2002
and 2003 and a 3.5% in FY 2004. Preliminary estimates for AV in FY 2001 indicate a 2.8% growth.
As evidenced by this graphical presentation, even with the two cent shift from the General Fund
to the Debt Service Fund, additional revenues will be required in FY 2002 in order to maintain an
adequate fund balance of 20% of debt service requirements. Additional revenues will be required
in FY 2002 (prior to the potential $20M FY 2003 issue) as the fund balance would be at 9.3%.
51
STATUS OF SECTION 108 PROJECTS
In 1998, the City of Beaumont received approval of Section 108 funding in the amount of
$11,000,000 from the Department of Housing and Urban Development. The Section 108
Program is a loan guarantee provision of the Community Development Block Grant(CDBG)
Program whereby municipalities can borrow up to five times their annual CDBG allocation. The
$11,000,000 loan will be repaid by the City and project developers over a 20-year period.
Crockett Street-The Beaumont City Council approved a Section 108 loan for the
Crockett Street Project in the amount of$3,000,000 in August of 1998. The total project
cost is estimated at $5,700,000. The project is the redevelopment of the"Dixie Street"
commercial block in downtown Beaumont. The developers plan to redevelop the two
story historic storefront buildings into a combination of entertainment, eating, and
drinking establishments. Approximately 300 permanent jobs would be created upon
completion of the project. A ground breaking ceremony is scheduled for Wednesday, May 17,
2000.
Hotel Beaumont- The Council approved a request from the National Development
Council for Section 108 funding in the amount of$3.175 million($2.0 million loan and$1.175
million grant) in December of 1998_ The National Development Council is completely
renovating the Hotel Beaumont, located at 625 Orleans Street. Currently, there are 75 occupied
units at the Hotel Beaumont with plans to increase that number to 135 after the renovation is
complete. The total anticipated project cost is $7,495,000. The project is 50%complete.
Jefferson Theatre- Council approved Section 108 funding in the amount of
$2,000,000 (grant) in September of 1998. The Theatre will be restored as close as possible
to its original design. In 1996, a concentrated effort was initiated to mobilize over
150 civic leaders and area citizens to undertake a comprehensive planning process
and capital campaign with a goal of raising $3,000,000 in addition to the $2,000,000
grant from the City. To date, private donations total nearly $2,500,000.
Theodore R.Johns Sr.Branch Library- Council approved Section 108 funding in the amount
of$1,825,000 for the construction of a new library,the Theodore.R. Johns, Sr. Branch. The new
library will replace an outdated facility, the Spindletop Branch, currently serving the south end of
Beaumont. The building will be approximately 12,000 square feet on a five-acre site at the
intersection of State Highway 124 (Fannett Road) and Sara Street. The library is currently in the
design phase and construction is projected to commence within five months.
L.L.Melton YMCA-Council approved Section 108 funding in the amount of$1,000,000
(grant) for the renovation of the L. L. Melton YMCA and the construction of new facilities.
Final preparation of the design work for the new facilities is now being conducted. When the
detailed project information is received by the City of Beaumont, a detailed summary will be
sent to the Department of Housing and Urban Development(Fort Worth Office). Before the
information is sent, a 30-day comment period is required whereby the public can review the
application. If the project is approved in the HUD - Fort Worth office, the project then has to
have final approval by HUD - Washington before funds are provided to the City.
53
Good News/Bad News
The Good News
O Increase in ending General Fund Balance FY 1999 - Actual
over Projection (+$700,000 after audit)
O Ending General Fund Balance FY 2000 "Projected"
(-$500,000 rather than -$1.1 M as budgeted)
• FY 2000 Ending Fund Balance projected to be 11%
• Entertainment Complex Feeder Road State Participation
($2.8M Savings)
O Sales Tax revenues to date exceed estimates by 2.4% - may
compensate for "Holiday"
O EMS collections are projected to exceed budget by $700,000
O Library has been awarded several technology grants totaling
$272,770
O Building Permit issuance to date has increased 5.3% over FY
1999
The Bad News
O Wading Pool Replacement - Cost from low bidder was
$345,000
O Higher cost of fuel (fleet) - March 1999 cost: $.61/gallon;
March 2000 cost: $1.12/gallon
O Unknown cost impact of Sales Tax Holiday
O Preliminary Property Tax values at 2.9% growth (5%
assumption used in Long-Range Financial Forecast)
55
CITY OF BEAUMONT
BILLING AND COLLECTION REPORT•EMS SUMMARY
For-the period ended April 30, 2000
Current Month: April-2000
Total %Collected % Collecte
Number Gross Billed Adjustments Net Billed Revenue To Gross To Net
Billed (1) Collected(3) Billed Billed
Medicare 202 78,975 17,083 61,892 49,597 - 62.8% 80.19
Medicaid 119 44,100 36,187 (4) 7,913 24,922 56.5% 315.00,
Other Insurance 142 54,595 19 54,576 70,752 129.6% 129.60,
Self Pay 271 93,620 430 93,190 8,961 9.6% 9.60,
Total 734 $271,290 $53,719 $217,571 $154,232 56.9% 70.90,
Fiscal Year-To-Date: October,1999 thru April 2000
Number %Collected % Collectec
Billed Gross Billed Adjustments Net Billed %Of Total To Gross To Net
Y-TD Y-TD(2) Y-T-D Y-T D Net Billed Billed Y-T D Billed Y-T-t
Medicare 1687 650,617 177,556 473,061 25.7% 54.1% 74.4%
Medicaid 791 290,880 173,162 117,718 6.4% 43.6% 107.70A
Other Insurance 1386 463,140 11,538 451,602 24.5% 99.6% 102.1 T,
Self Pay 2319 808,603 9,357 799,246 43.4% 7.7% 7.80,E
-otal 6,183 $2,213,240 $371,613 $1,841,627 100.0% 45.3% 54AoA
Revenue Revenue Over/
Estimate Collected %Of Total (Under)
Y-T-D Y-TD(3) Collected Estimate
Medicare 176,953 352,018 35.1% 175,065
Medicaid 63,522 126,724 12.6% 63,203
Other Insurance 231,904 461,263 46.0% 229,359
Self Pay 31,760 62,186 6.3% 30,426
Total $504,139 $1,002,191 100.0% $498,053
Analysis of Outstanding Accounts:
Active Collection Installment
Accounts Accounts Accounts Total
Medicare 139,610 139,610
Medicaid 209,951 209,951
Other Insurance 102,335 102,335
Self Pay 2,282,745 14,576 2,475 2,299,796
Total $2,734,641 $14,576 $2,475 $2,751,692
-'tilling for dates of service Mar 22, 2000 to Apr 20,2000.
milling for dates of service Aug 21,1999 to Apr 20, 2000.
(3) Includes collection on delinquent accounts-agency collections net of fees and refunds
(4) Increase in Medicaid adjustments resulting from appeals filed on claims from prior months, the difference in charges billed an
charges allowed and denied claims must be written off.
2000:-BUDGET SUMMIT
FINANCIAL AND BUDGETARY CHALLENGES
Reinventing and Re-engineering for the Next Millennium
In order to meet the increasing challenges of reduced or limited funding and increased citizen
expectations for service, the City must explore ideas to reduce cost, generate revenue and
increase service quality.
It is important to match the taxes and fees that the public is willing to pay with the cost of
services that the public demands. When a City government is involved in "rightsizing" a
service cost that means having the right number of people with the right kind of skills and
training, the right amount of supplies and just the right amount of physical plant and
equipment to provide service properly.
"If you downsize,you're cutting costs but you're not fixing
fundamental problems."
W.Edwards Deming
Reinventing government is a process of changing the fundamental way government operates.
This process is comprised of the following 10 principles:
1. Catalytic Government: Steering Rather Thank Rowing
2. Community-Owned Government: Empowerment Rather Than Serving
3. Competitive Government: Injecting Competition Into Service Delivery
4. Mission-Driven Government: Transforming Rule-Driven Organizations
5. Results-Oriented Government: Funding Outcomes,Not Inputs
6. Enterprising Government: Meeting the Needs of the Customer, Not the
Bureaucracy
7. Enterprising Government: Earning Rather Than Spending
8. Anticipatory Government: Prevention Rather Than Cure
9. Decentralized Government: From Hierarchy to Participation and Teamwork
10. Market Oriented Government: Leveraging Change Through the Market
.r;7
The concept.of re-engineering extends beyond the basic improvement of an existing process
It means fundamentally changing an existing process.or eliminating it totally. Therefore,
reinventing and re-engineering are two approaches that are compatible and necessary if
significant changes are to be made to provide the most efficient and cost effective services
to our customers.
A reinventing/re-engineering process provides the Mayor and Council various policy options:
Provide services differently or at a different service level
Raise revenue (fees and/or taxes)
Ask for understanding for a declining City and reduced service levels
The use of reinventing/re-engineering provides significant cost savings for the long-term
financial stability of the City by:
Determining services to be eliminated
Identifying subsidies to be discontinued
Determining appropriate service levels focusing the organization on mission,
engendering an entrepreneurial spirit throughout the organization
The reinventing/re-engineering process involves important activities to establish a proper
environment to realize cost savings and service quality enhancement.
COMPETITIVE GOVERNMENT
INJECTING COMPETITION INTO SERVICE DELIVERY
Most obvious advantage of competition is greater efficiency or more bang for the
buck.
Competition forces public or private monopolies to respond to the needs of their
customers.
Competition rewards innovation; monopoly stifles it.
Competition boosts the pride and morale of public employees.
Competition must be carefully structured and managed, if it is to work...unregulated
markets generate inequity..
PRIVATIZATION TECHNIQUES
Service Shedding. A'form of total privatization in which government stops providing a
service entirely.
Contacting Out. The City contracts with a private organization, for profit or nonprofit,
to provide a service.
Public-Private Competition. Public in-house units compete against private firms to
provide a public service.
Franchise. A private firm is given the exclusive right to provide a service within a
certain geographical area for a limited time.
Vouchers. Government provides individuals with certificates redeemable for purchase of
a good service on the open market.
Subsidy. The producer of the service is subsidized by the government contributing
financially or in-kind to a private organization to reduce the cost of private provision of
service to consumers.
Internal Markets. Government departments are free to purchase services form either the
private sector or internal support units.
Asset Sale or Lease. Government sells assets such as airports, utilities or real estate to
private firms, thus turning physical capital into financial capital.
Volunteers. Volunteers are used to provide all or part of a government service.
Self-Help. Community groups and neighborhood organizations take over a service or
government asset such as a local park.
Private Infrastructure Development. The private sector builds, finances and/or
operates infrastructure such as roads and airports, recovering costs through user charges.
Deregulation. Government regulations are eliminated to allow private providers to
compete against a government provider; for example, allowing firms to compete with the
U.S. Postal Service.
59
THE CORE CONCEPT
Does the activity fit the organization's strategic plan?
Does the activity produce more value for the customer than it consumes in
resources?
If not, why is the organization doing this?
Crucial to all downsizing or rightsizing efforts is deciding on what the organization does
well. Rational resource allocation simply means putting scarce resources to good use.
Government activity should produce more value than it consumes.
"Unless we change our direction, we are likely to end
up where we are headed."
-Old Chinese Proverb
The following are critical activities to support the reinventing/re-engineering process:
Create a mission and shared vision of the community and organization.
Embrace the primary values of the organization.
Mayor/Council sets strategic goals and objectives.
Mayor/Council sets priorities and eliminates programs that do not support the mission
of the City.
An effort is made to reduce organizational layers as part of streamlining the
administration.
All non-essential work that does not provide value to the customer is eliminated
through improving work processes.
* Implement a quality improvement/customer service perspective.
Emphasize performance measures for all services areas.
Explore alternative service delivery approaches.
Create meaningful opportunities for citizen involvement.
Communicate the results of the process to the organization employees and
community.
Celebrate the success achieved!
60
ORGANIZATION GUIDELINES
Is it the right thing for the community or organization?
Is it the-right thing for the department?
Is it ethical and legal?
Is it something you are willing to be accountable for?
* • Is it consistent with the organization values and policies?
When the answers to all of the above questions are yes, the guidelines state "just do it" and
don't bother asking for permission or forming a committee to decide. That is the sort of
policy manual that encourages employees to think; and when employees think, they can
create with flexible, innovative solutions and services for their customers.
The funding strategies to be utilized in reinventing/re-engineering focus on the following
areas:
Preserve and enhance the capital improvements program and planning
process.
Commit to not substituting City funding for reductions in state or federal
funding programs.
Reduce personnel positions by attrition when feasible by managing
vacancies through a hiring freeze.
Identify best practices through benchmarking - search for best practices that
will lead to aggressive internal goal setting and ultimately improved
performance; best practices are compiled and'become the standard against
which the local government compares itself.
Survey citizens to understand demands and expectations for service - use
surveys to understand the level of service citizens expect from their local
government.
Emphasize user fees as opposed to increase in taxes.
Maintain a reasonable fund balance.
Develop productivity initiatives and gain-sharing with departments that are
successful in reducing costs while maintaining or increasing service quality.
61
Institute an aggressive program to procure federal/state grants to address
identified priorities to the City.
"The onlyperson who likes change is a wetbaby."
-RoyZ M.Blitaer
There are other important aspects to reinventing/re-engineering that Mayor and Council need
to consider prior to a major commitment.
*. To be successful, long-term financial forecasting and planning is essential.
However, unexpected and unpredictable events can and will occur to
impact any forecast no matter how well prepared.
The Mayor, City Council and Administration need to commit to the process
and its potential outcome.
Reinventing/re-engineering can't be accomplished in one or two years. It is
a long-term commitment and a basic rethinking of the fundamental mission
on how government provides service.
It is important to solicit community understanding and involvement as the
process proceeds into reducing or eliminated programs and reviewing fees
for services.
A commitment must be made to enhance volunteer programs and
public/private partnerships in order to maintain existing levels of priority
services.
There is a need to renew commitments for education and training by
examining the type of training necessary to lead and change the
organization.
Sufficient time must be spent on communicating openly through focus
groups, staff meetings, public forums, citizen newsletters and other strategic
sources of information that can be identified.
"There is nothing more difficult to take in hand,
more perilous to conduct...than to take the lead in
the introduction of a new order of things."
-Niccolo Machiavelli,"The Prince"
62
IDEAS THAT SAVE COSTS AND INCREASE REVENUE/SERVICE QUALITY
Mayor/Council and Administrative Staff are agents of change. Change requires a driving
force and the most powerful change agent is financial stress. The City of Beaumont must
make major changes in the operation of government if financial stability and quality services
are to be continued.
The implementation of a portfolio management tracking system to monitor
taxes, water, sewer and other City assessments will result in increased
revenues received in a more timely manner.
The City should sell assets - land, buildings, equipment to the extent
possible in order to turn underutilized physical capital into financial capital and
produce tax benefits.
Privatization of public services should be considered through a competitive
process with City employees when contracting provides a clear advantage
on cost savings and service quality. While the private sector can be an
effective agent for delivering public services,the responsibility for providing
services - determining the scope, level and conditions under which they are
delivered remains with City officials committed to the public interest.
Management improvement efforts many times focus on how to do unimportant
things cheaper. Instead, as City leaders we should ask.- "should we be doing
this at all?" City government should limit activities to core functions and
missions. Does the City activity/service provide more value for the customer
than it consumes in resources? Is the service essential? Is the private sector
already providing the service or if not, is it capable of doing so better than
government? Does the program displace voluntary community or
neighborhood networks? This approach must-Be applied to all service areas
with the intent to eliminate activities that don't meet the criteria.
Solicit ideas from the Municipal Court Judges on saving operating costs and
gener9ting additional revenue from the judicial system.
Local telephone and long distance services are being analyzed for potential
cost reductions. The City's current cost for long distance service which is
through MCI Worldcom averages $3,500 per month. Phone lines and local
service cost through Southwestern Bell average $23,000 per month. Phone
lines include voice and data transmission lines. The City leases approximately
277 voice transmission lines, 60 trunk lines, 25 data transmission lines, and 6
local DID trunks with 600 numbers from Southwestern Bell.
63
Recent federal legislation provided for the deregulation of local phone service
allowing phone users to choose their provider of local phone service. Staff is
currently researching the possibility of soliciting bids for providing local phone
service to reduce the overall cost. It is estimated that there may a potential
savings of 15% or approximately $40,000 a year if these services are
competitively bid.
In addition, participation in the State of Texas TEXAN 2000 cooperative
telecommunications program provides discounts on all services currently
provided by Southwestern Bell including long distance services. Staff is
currently researching the contract with the State to determine if the discounts
afforded the State are more substantial than contracting a portion of phone
service to another supplier.
Currently, the long distance cost per minute is $.14, but this cost could be
reduced to $.09 per minute if the City participates in the TEXAN 2000
program for long distance services reducing the total cost for long distance by
approximately 60%.
The City Council and City Manager meet quarterly with the Beaumont
Independent School District to discuss common issues and priorities. The
Council and Manager also meet quarterly with the Chamber of Commerce and
all Beaumont governmental entities for the same reason. Programs, services
and taxpayer facilities should be identified for better coordination and use. For
example, the City and BISD could utilize joint facilities for recreational
programs.
Consolidate grass cutting across Departments by assigning responsibility to the
Parks and Recreation Director. Grass cutting responsibility from Streets and
Drainage and Clean Community will be transferred to Parks with employees
and equipment centralized in the new Parks maintenance facility. This will
improve coordination of personnel and equipment resulting in increased
productivity.
Institute energy management program through public/private partnership to
retrofit City facilities with capital costs paid from energy savings overtime.
Develop Government business opportunities to market products or services to
other public agencies, e.g. the "webber"back-flow device for toilets.
Solicit private sponsorship of public facilities such as the Civic Center.
Proposals would be solicited from the business community for naming rights
for an annual fee for a 20 year term.
64
Use of Fund Balance to address revenue shortfalls or unexpected expenses.
This is a short term solution that has negative consequences long term if the
fund balance is depleted.
To enhance employee morale,productivity and cost savings,we will establish
an employee incentive program that provides monetary incentives to
employees exceeding departmental goals and budget targets. The program is
based on the following:
* Incentive is based on performance measures through budgetary savings
Incentive is not related to performance evaluation system
It is department and program based not individual based
Each department has a mission statement and performance measures;
incentive comes ifthe department meets performance measures;partial
accomplishments are recognized as well
Capital outlays/improvements, insurance and professional fees are not
included
50% of savings is returned to general fund, 50% is shared evenly
among employees generating the savings.
Reduction in Fleet
Outsourcing City Internal Services
Elimination/Transfer of Service Responsibility
Adjust Service Levels
Discontinue Subsidy of Programs/Services
Subsidize Transfer of Service
Encourage Volunteer/NonProfit Participation in Service Delivery
Private Infrastructure Development
Establish Trust Opportunities for Private Donations
Improve Collection Process of City Fees
65
REVISED 2001 BUDGET PRESENTATION
The FY2001 budget process will focus on creating a program/performance based budget with
extensive citizen involvement. The following information provides more details on this
approach.
Program Budget'ng
What is a program budget?
• A budget format in which all proposed expenditures are grouped according to
"objects" or cost centers. In most local government budgets, the "programs" are
department-specific. For example, the Human Resources Department may include
these program categories for budgeting purposes: Personnel, Benefits and Worker's
Compensation.
• The use of program budgeting focuses on the outputs and outcomes of programs.
Once a program format is established performance measurement may be more readily
analyzed and reported.
Performance Measurement
Why would government use performance measurement?
• To provide to its citizens, through the budget document, a means to measure its
performance.
What are some of the measures or indicators used?
• Input
• Demand
• Output
• Efficiency
• Outcome
What are input measures?
• The amount of resources used for a specific program (i.e., number of dollars spent,
employee time).
66
What are demand measures?
• The amount of need for a particular service-a measure of the extent of a problem or
scope of work needed. (i.e.,number of miles of streets to be cleaned,number/values
of residents requiring fire protection).
What are output measures?
• The amount of a completed activity or effort that has been accomplished. (i.e.,
number of investigations completed,number of library books borrowed,miles of road
repaired).
What are efficiency measures?
• The cost to produce a unit of output(i.e., average cost per inspection performed cost
per ton of solid waste collected).
What are outcome measures?
• The quality of the program or process outputs. Effectiveness as a result of
responsiveness, timeliness, compliance, accuracy and customer satisfaction (i.e.,
average response time to fire calls,percentage ofbusinesses inspected,average citizen
satisfaction with services delivered).
Engaging the Citizens in the Budget Process
Why should a city market their budget?
• The annual budget process is an opportunity to dialogue with citizens regarding
community goals and priorities and to create public sdpport.
How would the City involve the citizenry in the budget process?
• Neighborhood meetings
• Citizen survey(PAFR distribution)
• Website
• Newsletter (water bill distribution)
• Channel 4 (local government access)
Relying on the public hearing process is in most cases "too little, too late" to involve a
significant number of participants. It is desirable to inform and educate the public so that
they might understand the "budget process" but this is often "one-way," not two-way
communication.
67
Dr. Frank Benest of The Innovation Groups provided the following illustration:
Continuum of Public Discourse
Informing Citizens Eng_azing Citizens
One-Way Two-Way
Telling/Selling Listening/Responding/Listening
Education Learning
Presenting Information Eliciting values, hopes,
aspirations, concerns
Discerning "Public Opinion" Promoting "Public Judgement"
Analysis of Fund Balance
Traditionally,two methods have been used by finance officers in determining the appropriate
size of unreserved fund balance:
• allocating financial resources equal to a percentage of annual operating expenditures
• allocating financial resources equal to a certain number of months' operating
expenditures
The City of Beaumont uses a range of 8-10% of expenditures in the General Fund. This
relates closely to one month's operating expenditures(8.3%)which is widely used standard.
What factors influence the establishment of a certain level of unreserved fund balance?
Revenue structure - Is it volatile? What is the City's dependence of sales tax? Are City
revenues sensitive to the effects of the business cycle?
• Expenditures - Can purchases be deferred?
• Cash flow - Can sufficient cash balances be managed with an uneven cash flow?
The projected level of unreserved fund balance for the General Fund as of April 30, 2000
exceeds the 8-10% called for in the financial policy. (11 %).
68
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City of Beaumont
March 31, 2000
To the Honorable Mayor and Councilmembers
INTRODUCTION
The Long-Range Financial Forecast, the Capital Improvement Program and the Annual
Budget, combine to form the basis of the annual budget process for the City of
Beaumont. The first report, the Long-Range Financial Forecast, is presented to Mayor
and Council prior to April 1 each fiscal year. The forecast is prepared to assess the
City's current financial condition and project that position ten years into the future
utilizing current policies, trends and assumptions, while maintaining the existing levels
of City services. The Capital Improvement Program and Annual Budget provide
increasing levels of detail and analysis.
The impact of the Long Range Financial Forecast will be reviewed during the 2000
Budget Summit on May 12, 2000 in preparation of the fiscal year 2001 Annual Budget.
The City's fiscal year encompasses the period from October 1, 2000 to September 30,
2001.
GENERAL GOVERNMENTAL FUNDS
General governmental funds include the General Fund and Debt Service Fund. The
General Fund accounts for the fundamental operating costs of most city departments.
The Debt Service Fund is used to record the resources received to retire the
outstanding debt obligations which are secured by taxes levied by the City.
i
i
i
69 j
General Fund Revenues
The majority of revenues recorded in the General Fund are derived from Sales Tax,
Property Tax, Industrial Payments and Gross Receipts Tax. The following illustrates the
proportion of each source for FY 2000.
General Fund Revenues
by source
40.3% Sales and use tax
20.0% Property taxes
9.1%Other
5.6%Water Utility in lieu
16.7% Industrial payments 8.3% Gross receipts tax
$65,481,000
The forecast of revenues is based on several assumptions.
Sales and use tax is projected to grow 5.2% in FY 2000 to $26AM. This represents an
increase of$1.3M over FY 1999. The remaining years of the long range forecast
project annual increases of three to four percent providing approximately $1 M in
additional revenue annually.
Property taxes represent $13.1M of total General Fund resources, a tax rate of$0.35
per $100 of assessed value. The current revenue estimate assumes the potential for
growth in assessed value which is included at a declining rate of 5% - 3%. Positive
economic conditions, combined with a recovery in mineral values lost in FY 2000,
support the 5% increase in assessed value anticipated in FY 2001. Funding
requirements for existing debt service dictate an increase of$0.02 to the Debt Service
portion of the tax rate. Rather than increase the total tax rate, the administration
proposes to shift this amount from the dedicated General Fund amount. The anticipated
increase in assessed value combined with the proposed decrease in the tax rate will
produce revenues of$13M in FY 2001. This is a 1% decrease from FY 2000 estimates.
The forecasted increase in assessed value for the remaining years will drive the
increased property tax revenues.
70
Industrial payments account for approximately $11M. A growth rate of 2.5% is
expected for FY 2001. Existing contracts will expire in FY 2001 and are subject to
renegotiation. The most sizable contract is with ExxonMobil followed by duPont and
Goodyear. These industries combine to provide over 83% of the existing industrial
payment revenues. Projections beyond FY 2001 present a growth rate of 3%, which like
the property tax, is based on positive economic conditions and growth in assessed
values.
Gross receipts taxes (franchise fees), collected from utility companies operating
within the City, are estimated at$5.4M for FY 2000, an increase of 1.4%. Based on
current known conditions and trends, these revenues are projected to increase 1.5%
annually for the foreseeable future. Entergy is the lead contributor of gross receipts tax
and is the most sensitive to fluctuation. Utility rate reductions and lower usage directly
impact the receipt of these taxes by effectively reducing the "gross receipts" on which
the tax is based. Included in this category are receipts from Southwestern Bell
Telephone Company. On September 1, 1999, House Bill 1777 changed the method
used to calculate the franchise fee for certified telecommunications companies. Under
the new method the amount will be based on a per-access line rate by category. No
significant change in the amount collected from Southwestern Bell is anticipated based
on the new method of calculation.
Total General Fund Revenues
100
80
60 --
0
40
20 -
0
2000 2001 2002 2003 2004 2005 2006 -2007 2008 2009
Fiscal year
m Sales and use tax ®Property taxes ®Industrial payments
C]Gross receipts tax 0 Water Utility in lieu ®Other
Overall, an average 2.7% growth rate is expected in General Fund revenues for the 10
years in this forecast which will produce additional revenues of approximately $1.5M -
$2M annually.
71
General Fund Expenditures
The basic costs of operating the City are charged to the General Fund. These
disbursements provide for Police; Fire; Public Works; Health, Cultural and Recreation;
Central Services; and General Government.
Current assumptions maintain the current level of services with the existing number of
authorized positions, contractual salary increases for fire personnel and an annual
salary adjustment of 3% for civilians. Police contracts are under negotiation for the
2001 fiscal year. This increase is offset with savings anticipated from the
administration's reorganization efforts.
Transfers, reflecting those charges related to dependent healthcare, the cost of liability
claims and lawsuits, facility renovation and the transit subsidy, are anticipated to
increase to $120,000 for FY 2001. This increase restores the transit subsidy to
$600,000 annually. It was reduced in FY 2000 to utilize available fund balance in the
Transit Fund. Future increases in this category are related specifically to dependent
healthcare. Total expenditures are expected to grow an average of 2.8% annually
throughout the projection period.
i
}
General Fund Expenditures
by category
FY 1999 FY 2000 FY 2001
Actual Estimated Projected
Wages $38,156,378 40,426,700 40,890,000
Benefits 7,824,213 7,996,900 8,040,000
Other Operating 11.476,423 12,768,400 12,772,000
Total Operating 57,457,014 61,192,000 61.702,000
Dependent Healthcare 2,996,400 3,152,300 3,168,300
Workers Compensation 700,000 745,300 749,000
Capital Reserve. 500,000 500,000 500,000
General Liability 400,000 400,000 400,000
Transit Subsidy 600.000 500,000 600,000
Total Transfers 5,196,400 5,297,600 5,417,300
Total General Fund $62,653,414 66,489,600 67,119,300
For the fiscal year ending September 30, 2000, the City will maintain a fund balance in
the General Fund of 10% of expenditures. It is projected, based on current
assumptions, that by FY 2002, the level will fall slightly below the goal of 10% and end
the year with a fund balance equal to 9.7% of expenditures.
72
i
Storm Water Utility
Currently under consideration is the creation of a Storm Water Utility to capture the
rising costs associated with unfunded mandates of the Environmental Protection
Agency (EPA) related to storm water runoff. If implemented, approximately $4M in
General Fund costs related to storm water would be recovered by a fee charged by the
Storm Water Utility. This will effectively make available $4M in General Fund resources
that could be directed to other uses such as a reduction in the property tax, funding
additional firefighters and performing needed neighborhood revitalization.
Debt Service Fund Expenditures
The major-source of revenue recorded in the Debt Service Fund is property taxes.
Currently, a rate of$0.285 is applied to each $100 in assessed valuation. As noted in
the General Fund discussion, the rate of growth for assessed valuation is estimated to
range from 3% to 5% during the term of this forecast.
It is anticipated that $0.02 of the General Fund portion of the tax rate will be shifted to
Debt Service for Fiscal Year 2001. This will provide the necessary resources to retire
current debt and sustain an adequate fund balance for that year.
In order to provide funding for the ongoing Capital Improvement Program (CIP), debt
issues of$20M are anticipated in January of 2001, 2003, 2005 and 2007. This would
provide the resources to complete projects currently listed in the FY 2000 CIP,
including Other Projects for Consideration. A dynamic document, the projects in the CIP
are reviewed and adjusted annually, as needed, by Mayor and Council.
Debt Service Requirements
Existing and Potential
20
15
H
C
O_
TAw
10
5 '
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Fscal Year
®Existing Debt Service ®Potential$20M-Jan 2001 W FtenU$20M-Jan 2003
O Fuential$20M-Jan 2005 ®Fbtent'ral$20M-Jan 2007
73
The full effect of debt service related to the anticipated January 2001 issue will be
registered in FY 2002. Additional revenue of$890,000 will be required to fund total
debt service and maintain an adequate fund balance of approximately 20% of principal
and interest requirements. Equating to an increase in the tax rate of $0.0225, this
could be achieved by either increasing the total tax rate or shifting this amount from the
dedicated General Fund rate.
These two increases in the dedicated Debt Service tax rate, along with the roll-off of
existing debt, will be sufficient to fund current and proposed debt issues through FY
2009, the term of this plan. Based on these assumptions, the rate will begin decreasing
in FY 2006, with a significant drop in debt service requirements being achieved in FY
2008.
INTERNAL SERVICE FUNDS
Internal Service Funds account for common charges to all departments. Risk
management for claims and lawsuits are recorded in the General Liability Fund. The
Employee Benefits Fund includes all health benefits, worker's compensation and
unemployment charges. Equipment and.vehicle purchase, as well as building
renovations, are charged through the Capital Reserve Fund. These charges are
recorded proportionately in individual departments, per employee or by equipment. The
funding sources for these funds are through charges and/or transfers from other funds.
Employee Benefits Fund
Funded through charges and transfers from other funds, the Employee Benefits Fund
has no independent revenue source other than employee contributions, which provide
approximately 11.7% of the revenues in this fund. For FY 2000, the City raised it's
contribution toward health benefits from $4,800 per employee to$5,300, which was
primarily related to the increased cost of dependent health care. The employee rate for
dependent coverage was increased $12 per month, effective January 2000, to further
offset rising costs. Current contribution levels will generate a fund balance for FY 2000
and FY 2001 of$1.1 M. The approximate amount of claims that have been incurred but
not reported in the indemnity plan, coupled with the reserve.requirements necessary to
fund incurred workers compensation claims, dictate a level'of fund balance equal to
$13M. The projected level of contributions will not be sufficient to provide that level of
coverage. Increasing the contribution from the City, current and former employees
and/or retiree's could provide the additional resources necessary in this fund.
Capital Reserve Fund
Originally created to provide for the replacement of equipment and vehicles, the Capital
Reserve Fund also exists to provide for the renovation of public facilities that are not
major capital improvements. With most large equipment purchases made and major
building renovations nearing completion, it is anticipated that the expenditure level
projected for FY 2001 will remain constant. The ending fund balance in FY 2001 is
projected at $1.1M.
74 '
General Liability Fund
Initiated in FY 1987, the General Liability Fund is the central repository for the payment
of claims, lawsuits and the professional services related to the defense of claims made
against the City. With,an estimated liability for claims and lawsuits of$1 M, it is
projected that additional resources will be required by FY 2003. The sole funding
source for the General Liability Fund is transfers from other funds. In order to provide
adequate resources, these transfers could be increased.
SUMMARY
In summary, administration's assumptions include average general revenue increases
of 2.7%. Projections for General Fund operating expenditures show an increase 3%
annually for personnel, with other operating costs remaining relatively flat. This
increase is expected to maintain the same level of service. The Debt Service Fund will
require an additional $0.02 in FY 2001 to cover existing requirements. To achieve this,
the administration proposes a transfer of a portion of the dedicated General Fund rate.
An additional $0.0225 in FY 2002 will be required to fund the debt service on current
'and proposed debt issues.
Internal Service Funds, including Employee Benefits, Capital Reserve and General
Liability, are dependent on service charges and transfers from other funds to service
the claims and purchases recorded therein. Sustaining sufficient fund balances will
require additional revenue in the Employee Benefits Fund and the General Liability
Fund.
Tables are attached for each of the funds discussed. The information provided is
organized so that a brief historical perspective may be gained as well as a forecast
studied, which is based on current known conditions and historical trend analysis.
Reports to Council will be made as needed should future developments occur that
significantly impact the City's financial condition.
Respectfully submitted,
h�
Stephen J. Bonczek Beverly P. H s, CPA
City Manager Finance Offi er
75
c
I
CITY OF BEAUMONT
LONG RANGE FINANCIAL FORECAST
General Fund
(In thousands)
Actual Estimated Projected Projected Projected Projected Projected Projected Projected Projected Projected
FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
REVENUES
Sales and Use Tax $ 25,055 26,365 27,420 28,517 29,515 30,548 31,617 32,724 33,706 34,717 35,759
Property Taxes 13,316 13,095 12,970 13,440 13,930 14,400 14,890 15,330 15,780 16,240 16,710
Industrial Payments 10,659 10,965 11,240 11,577 11,924 12,282 12,650 13,030 13,421 13,824 14,239
Gross Receipts Tax 5,351 5,427 5,508 5,591 5,675 5,760 5,846 5,934 6,023 6,113 6,205
Water Utility Fund In Lieu 3,650 3,650 3,650 3,650 3,650 3,650 3,650 3,650 3,650 3,650 3,650
Other 5,557 5,979 6,079 6,109 6,140 6,171 6,202 6,233 6,264 6,295 6,326
TOTAL REVENUES 63,588 65,481 66,867 68,884 70,834 72,811 74,855 76,901 78,844 80,839 82,889
EXPENDITURE CATEGORY
Wages 38,156 40,427 40,890 42,117 43,381 44,682 46,022 47,403 48,825 50,290 51,799
Benefits 7,824 7,997 8,040 8,209 8,383 8,562 8,746 8,936 9,132 9,333 9,540
Other operating 11,477 12,768 12,772 12,885 12,999 13,134 13,250 13,368 13,487 13,627 13,748
Total Operating 57,457 61,192 61,702 63,211 64,763 66,378 68,018 69,707 71,444 73,250 75,087
Dependent Healthcare 2,996 3,153 3,168 3,401 3,652 3,884 4,145 4,428 4,683 4,942 5,243
Workers Compensation 700 745 749 753 759 751 757 765 769 761 776
Capital Reserve 500 500 500 500 500 500 500 500 500 500 500
General Liability 400 400 400 400 400 400 400 400 400 400 400
Transit Subsidy 600 500 600 600 600 600 600 600 600 600 600
Total Transfers Out 5,196 5,298 5,417 5,654 5,911 6,135 6,402 6,693 6,952 7,203 7,519
TOTAL EXPENDITURES 62,653 66,490 67,119 68,865 70,674 72,513 74,420 76,400 78,396 80,453 82,606
EXCESS (DEFICIT) REVENUES
OVER EXPENDITURES 935 (1,009) (252) 19 160 298 435 501 448 386 283
FUND BALANCE
Beginning Fund Balance 6,981 7,916 6,907 6,655 6,674 6,834 7,132 7,567 8,068 8,516 8,902
Ending F-d Balance $ 7,916 6,907 1655 6,674 = " '14 7,132 7,567 8,068 8.516 8.9f 9.185_
CITY OF BEAUMONT
LONG RANGE FINANCIAL FORECAST
Debt Service Fund
(In thousands)
Actual Estimated Projected Projected Projected Projected Projected Projected Projected Projected Projected
FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
REVENUES
Property Tax Revenue$ 10,155 10,629 11,907 12,343 12,795 13,232 13,685 14,087 14,501 14,927 15,367
Interest Earnings 306 280 172 161 159 173 166 185 184 187 164
Miscellaneous Revenue -- -- 176 176 176 176 176 176 176 176 176
Additional Requirement - - -- 890 922 955 988 340 - (4,079) (4,202)
TOTAL REVENUES 10,461 10,909 12,255 13,570 14,052 14,536 15,015 14,788 14,861 11,211 11,505
EXPENDITURE CATEGORY
Principal&Interest(P&1 11,047 12,398 12,297 12,272 12,352 11,768 11,719 10,427 10,364 5,769 5,759
P& I-anticipated issues -- -- 137 1,326 1,449 2,874 2,970 4,369 4,438 5,811 5,716
Bond Sale Expense 1
10 10 10 10 10 10 10
Service Charges 6 10 10 10
TOTAL EXPENDITURES 11,054 12,408 12,444 13,608 13,811 14,652 14,699 14,806 14,812 11,590 11,485
EXCESS(USE)OF FUND
BALANCE (593) (1,499) (189) (38) 241 (116) 316 (18) 49 (379) 20
FUND BALANCE -'
Beginning Fund Balance 4,961 4,368 2,869 2,680 2,642 2,883 2,767 3,083 3,065 3,114 2,735
Ending Fund Balance $---A15-8- 2.869 2.680 642 -2,883 -2,767 3,083 --3,06 3,114 2.735 2.755
t
CITY OF BEAUMONT
LONG RANGE FINANCIAL FORECAST
Employee Benefits Fund
(In thousands)
Actual Estimated Projected Projected Projected Projected Projected Projected Projected Projected Projected
FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
REVENUES
Charges to Funds
Health Insurance $ 6,825 7,330 7,340 7,340 7,340 7,340 7,340 7,340 7,340 7,340 7,340
Worker's Comp. 900 990 990 990 990 990 990 990 990 990 990
Unemp./Term STD 35 268 280 280 270 270 270 260 260 260 260
Employee Contributions 965 1,147 1,194 1,207 1,220 1,234 1,248 1,261 1,275 1,290 1,304
Interest Earnings 90 90 100 100 100 100 100 100 100 100 100
Miscellaneous Revenue 83 -- 25 25 25 25 25 25 25 25 25
Additional Requirement -- - -- 200 700 1,000 1,300 1,700 2,000 2,300 2,800
TOTAL REVENUES 8,898 9,825 9,929 10,142 10,645 10,959 11,273 11,676 11,990 12,305 12,819
EXPENDITURE CATEGORY
Health 8,138 8,402 8,695 9,010 9,345 9,675 10,025 10,400 10,745 11,110 11,500
Workers Compensation 864 970 975 980 988 977 985 995 1,000 990 1,010
Unemployment 49 40 40 40 40 40 40 40 40 40 40
Short-term Disability 268 300 240 240 230 230 230 220 220 220 220
TOTAL EXPENDITURES 9,319 9,712 9,950 10,270 10,603 10,922 11,280 11,655 12,005 12,360 12,770
EXCESS(DEFICIT) REVENUES
OVER EXPENDITURES (421) 113 (21) (128) 42 37 (7) 21 (15) (55) 49
FUND BALANCE
Beginning Fund Balance 1,462 1,041 1,154 1,133 1,005 1,047 1,084 1,077 1,098 1,083 1,028
Ending Fund Balance $ 1.041 1.154 1.133 1.005 1.047 1,084 1.077 1.098 1.028 1.077
I
CITY OF BEAUMONT
LONG RANGE FINANCIAL FORECAST
Capital Reserve Fund
(In thousands)
Actual Estimated Projected Projected Projected Projected Projected Projected Projected Projected Projected
FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
REVENUES
Service Charges $ 1,493 1,510 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
Interest Earnings 98 70 60 60 60 60 60 60 60 60 60
Miscellaneous Revenue 195 40 20 20 20 20 20 20 20 20 20
Transfers In 557 558 559 558 559 558 559 558 559 558 559
Other Financing Sources 812 -- -- -- -- _ -- -- -- --
TOTAL REVENUES 3,155 2,178 2,139 2,138 2,139 2,138 2,139 2,138 2,139 2,138 2,139
EXPENDITURE CATEGORY
Renovations 926 185 100 200 200 200 200 200 200 200 200
Equipment 661 842 600 650 650 650 700 700 700 700 700
`4 Vehicles 1,012 1,389 1,100 1,100 1,100 1,100 1,200 1,200 1,200 1,200 1,200
co -- -- - - --
Debt Service 204 297 420 230 177 184
TOTAL EXPENDITURES 2,803 2,713 2,220 2,180 2,127 2,134 2,100 2,100 2,100 2,100 2,100
EXCESS(DEFICIT) REVENUES
OVER EXPENDITURES 352 (535) (81) (42) 12 4 39 38 39 38 39
FUND BALANCE
Beginning Fund Balance 1,391 1,743 1,208 1,127 1,085 1,097 1,101 1,140 1,178 1,217 1,255
Ending Fund Balance $ 1,743 1.208 1.127 1,085 1,097 1.101 1,140 1,178 1,217 1,255 1294
i
CITY OF BEAUMONT
LONG RANGE FINANCIAL FORECAST
General Liability Fund
(In thousands)
Actual Estimated Projected Projected Projected Projected Projected Projected Projected Projected Projected
FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2006 FY 2009
REVENUES
Interest Earnings $ 59 60 60 60 60 60 60 60 60 60 60
Transfer in/Service Charg 600 600 600 600 600 600 600 600 600 600 600
Additional Requirement -- -- -- -- 6 45 45 45 45 45 40
TOTAL REVENUES 659 660 660 660 666 705 705 705 705 705 700
EXPENDITURE CATEGORY
Professional Services 59 100 100 100 100 100 100 100 100 100 100
Liability Claims 611 700 600 600 600 600 600 600 600 600 600
Otherinsurance 3 4 4 4 4 4 4 4 4 4 4
TOTAL EXPENDITURES 673 804 704 704 704 704 704 704 704 704 704
EXCESS(DEFICIT)REVENUES
OVER EXPENDITURES (14) (144) (44) (44) (38) 1 1 1 1 1 (4)
FUND BALANCE
Beginning Fund Balance 1,285 1,271 1,127 1,083 1,039 1,001 1,002 1,003 1,004 1,005 1,006
Ending Fund Balance $ 1.271 1.127 1.083 1.039 1.001 1.002 1.003 1.004 1.005 ---j_Qw 1.002_
CAPITAL IMPROVEMENT PROGRAM
May 15, 2000
To the Honorable Mayor and Councilmembers
Capital Program
The Capital Improvement Program (CIP), is a plan prepared annually to provide for both
short and long range physical development within the City of Beaumont. Charter requires the
submission of the CIP to Council as part of the financial planning process. It is adopted in
September with the annual operating budget. The CIP allows for project evaluation at a
comprehensive level and also provides the financial information necessary to plan and
anticipate potential changes to the tax structure, user fees and bonded indebtedness.
Generally, a capital improvement has the following characteristics: relatively high monetary
value (at least $100,000), long life (will last at least 10 years), and results in either the
creation of a fixed asset, or the revitalization of one. Fixed assets are resources owned by
the City which have monetary value, long-term character and will be held or used. Examples
are land, buildings and improvements to land other than buildings. Included within the above
definition are the following specific items: purchase, improvement and development of land;
construction of new facilities for the delivery of City services; remodeling of existing facilities;
and the planning/engineering costs related to specific improvements of the type listed above.
The CIP includes a listing of all General and Public Works improvement projects along with
project descriptions and cost estimates. General Improvements include Parks and
Recreation, Public Safety and other general government municipal facility improvements,
whereas Public Works Improvements include street, stormwater drainage and water system
projects.
Approved projects are classified in three phases: current, scheduled and planned. A
project classified as current is underway or will be underway within the calendar year. Those
classified as scheduled are under design and right-of-way is being acquired however no
construction contract has been let. Projects classified as planned are approved projects but
are only in the preliminary stage. Other projects for consideration, also included in this
presentation, represent projects that are desirable but are not included in the five year plan.
81
Capital Program 2000
May 12, 2000
Completed Projects (1996-2000)
Since 1996, approximately $48M of projects, both general improvement and public works,
have been completed or will be completed prior to fiscal year end 2000. The general
improvement projects completed during this five year period totaled $15.5M. The costs for all
public works projects topped $32.4M. An average of $10M in projects were completed
annually during this period. A summary of the projects completed from 1996-2000 follows:
YEAR DESCRIPTION AMOUNT
General Improvement Projects
1996 Airport T-Hangers $ 314,000
Parks & Recreation Improvements 324,000
Fair Park Improvements 480,000
1997 Colliers Ferry Park 1,250,000
Julie Rogers Theatre - Foundation 410,000
Tyrrell Park 226,000
1998 Elmo Willard Library 1,691,000
Julie Rogers Theatre- Site Development 255,000
1999 Alice Keith Swimming Pool 1,365,000
2000 Municipal Court Building 1,904,000
Fire Station Construction (3) 2,285,000
Beaumont Yacht Club Additions 1,080,000
Fire Training Center Improvements 1,360,000
Athletic Complex- Softball Fields 1,543,000
Parks Maintenance Facility 700,000
Police Building Renovation 300,000
Public Works Projects ,
1996 Major Drive (College to Hwy 105) 1,000,000
Liberty-Laurel 5,000,000
1997 Maury Meyers Overpass 4,050,000
West Lucas 9,000,000
South Park Relief 3,400,000
Twenty-Third Street 400,000
1998 Royal Street Outfall 825,000
Eleventh Street-Washington to Fannett 1,900,000
Folsom Road -Crow to Dowlen 1,500,000
1999 Chaison Street-Threadneedle to Harriot 156,000
2000 Walden Road/Ditch 109 845,000
Ector Street Ditch 500,000
Franklin Street 765,000
Concord Road - Phase 1 (1-10 to Helena) 3,130,000
82
Capital Program 2000
May 15, 2000
Outstanding Debt
Relative to the assessed value of property within the Beaumont city limits, the outstanding
general obligation debt has ranged between a high of 2.54% at 10/01/92 and a low of 1.95%
at 10/01/97. The increasing assessed valuation of property is attributable to both the addition
of new property to the tax roll and increasing values of existing properties. The growth in
assessed value mirrors the increase in the level of debt issued by the City for improvements
to infrastructure which support a growing economy. The debt level has fluctuated between
$66M at 10/01/91 to $89M at 10/01/99 while maintaining an average basis of 2.18% for
period under review. The projected debt ratio at 10/01/00 is in line with the average at 2.19%
of assessed value. The following table illustrates this discussion.
Outstanding Assessed Debt
Debt Value Ratio
10/01/91 66,386,091 2,890,352,140 2.29%
10/01/92 75,991,091 2,986,049,120 2.54%
10/01/93 71,922,491 3,245,152,910 2.22%
10/01/94 67,584,491 3,251,615,993 2.08%
10/01/95 68,501,191 3,311,639,210 2.07%
10/01/96 71,482,591 3,420,010,280 2.09%
10/01/97 68,286,391 3,499,102,595 1.95%
10/01/98 76,723,691 3,661,785,240 2.10%
10/01/99 89,243,491 3,701,491,226 2.41%
10/01/00 (prelim) 81,093,791 3,807,893,465 2.13%
83
Capital Program'2000
May 15, 2000
As a percentage of total general government expenditures (General Fund and Debt Service),
annual debt service payments have ranged from 13.16% to 15.72% during the period FY97
through FY00. Considering existing debt levels, this ratio is projected at 15.63% for FY 2001.
Fiscal General Govt. Debt Service Percent
Year Expenditures Payments of Total
1997 68,938,149 9,494,045 13.77%
1998 70,273,731 9,248,501 13.16%
1999 73,707,664 11,046,674 14.99%
2000 (Est) 78,888,000 12,397,529 15.72%
2001 (Prof) 79,563,000 12,433,900 15.63%
Debt ervice Payments
Relative to General Government Expenditures
100
80
60
- µ
40
20
t
y t
0 i
1997 1998 1999 2000 2001
Fiscal Year End
p General Fund Expenditures ®Debt Service Payments
84
Capital Program 2000
May 15, 2000
Capital Program 2001
Current, scheduled and planned projects total $57.1M. Individual project descriptions, with
maps for street and drainage projects, may be found in the section titled "Project
Descriptions."
The following table identifies the specific cost associated with each phase of the CIP.
Capital Program 2001
Program Summary
Cost
Public Works Improvements
Current $30,935,000
Scheduled 5,600,000
Planned 14,100,000
Total 50,635,000
General Improvements
Current $180,000
Scheduled 3,125,000
Planned 3,141,000
Total 6,446,000
Total Program Cost $57,081,000
Funding
Financing for the annual program is provided by the "cash flow" approach, whereby debt is
issued to generate enough cash to pay the actual expenditures during the year for both
existing and new projects. This approach provides the most efficient use of the public tax
dollars by allowing multi-year projects to be initiated without issuing debt for the full cost of
the projects at the time of project commencement. All available funding sources are
considered. Historically, funding has been provided by the sale of general obligation debt,
Community Development Block Grant, and various State agencies.
85
Capital Program 2000
May 15, 2000
Based on a "cash flow" approach the City expects to sell $20M in Certificates of Obligation in
early FY 2001. This inflow of cash will provide sufficient cash flow for current and scheduled
General Improvement and Public Works Improvement projects.
Funding for the remaining planned projects has not been identified. As these projects
transition into the "scheduled" or "current" classification funding requirements will be
reviewed and proposed. Several factors which are unforeseeable will dictate the amount of
debt issued. Weather, planning, design and construction costs all factor into the decision of
when and how much debt to issue.
The funding required to complete all current and scheduled projects is estimated at $13.11M
at this time.
Capital Program 2000
Funding Summary
Estimated Cost of Projects
Current $31,115,000
Scheduled 8,725,000
Planned 17,241,000
Total $57,081,000
Funds Available
Committed $26,750,000
2001 Certificate of Obligations 20,000,000
Total 46,750,000
Funds required to complete
Capital Program 2001 $10,331,000
Water Utilities Improvements
The City Public Works Department has worked with engineering firms to identify necessary
improvements to the water and waste water systems. Preliminary estimates for the
renovation of the systems, which will be completed over a five year period, is in excess of
$50M. These renovations are required to meet federal and state mandates as well as meet
the needs of the City's growth. Individual project descriptions may be found in the section
titled "Project Descriptions."
86
Capital Program 2000
May 15, 2000
The initial sale of$25M in Water Revenue Bonds in August 2000, is expected to fund the first
phase of these improvements. A rate adjustment of 30% will be required to adequately fund
debt service requirements. This adjustment must be approved 60 days prior the issuance of
the revenue bonds. Additional rate adjustments and debt issuance will be required in
subsequent years.
Conclusion
The Capital Program is designed to annually review the development and continuing
maintenance of the City's infrastructure. The relationship between the assessed valuation,
outstanding debt, annual debt service requirements and general government expenditures as
illustrated provide a basis for project consideration and funding. Revisions and amendments
may be incorporated into the plan as desired by Council.
87
Capital Program 2001
_ Public Works Improvements
Amount
Current Projects
Major Drive $ 4,000,000 (1)
Neches River Hike and Bike Trail 3,400,000 (2)
Walden Road - Major to IH-10 5,620,000
Walden Road - IH-10 to Fannett 1,030,000
Concord Road - Phase II (Includes Delaware outfall) 9,150,000
Concord Road - Phase III (Includes Concord Road North outfall) 5,310,000
Folsom Road 2,425,000
Total $ 30,935,000
Scheduled Proects
Phelan Boulevard - Major Drive to West of Westbrook $ 1,500,000
Caldwood Outfall 3,700,000
Moore Street Relief 400,000
Total $ 5,600,000
Planned Projects
High School Ditch $ 8,000,000
Madison Street - Irving to Grove 1,500,000
Main Street- Calder to Blanchette 2,000,000
Old Dowlen -SH 105 Connector 2,600,000
South Park Relief- Remaining phases 3,600,000
Total $ 14,100,000
(1) Includes TXDOT funding of 80% or$3.2M.
(2) Includes TXDOT funding of 801D/o or$2.4M.
89
CALDWOOD OUTFALL
When completed, this project will double the capacity of the Caldwood Addition Outfall and relieve street
flooding. The project includes installation of a trunk system on East Caldwood, installation of inlets and
laterals on Bristol, Sunbury, Medford, Canterbury and the reconstruction of the streets.Also included is the
installation of new laterals, replacement of 50 inlets and reconstruction of Cross, North Caldwood, Central
Caldwood, and South Caldwood Streets. The estimated cost of this project is$3,700,000. .
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CONCORD ROAD
This project is needed to relieve the north/south traffic congestion on Eastex Freeway as well as to provide
an extension of M. L. IGng, Jr. Parkway. Concord road has an indefinite right-of--way and as a result,
additional right-of-way requirements are difficult to determine.The addition of a curb and gutter section will
also require the construction of the Concord Road North Outfall to complement this project as well as the
Delaware Outfall(formerly known as the Prince Street Outfall)Drainage Project This project will be carried
out in three phases and provide for the reconstruction of Concord Road from IH-10 to East Lucas into an
arterial roadway. Phase I, IH-10 to Helena, has been completed. Phase II, Helena to the railroad track,
includes the construction of the Delaware Outfall. Estimated cost for Phase 11 is$9.2M. Phase Itl will cover
the area from the railroad track to East Lucas and will include the Concord Road North Outfall. Estimated
cost for this phase is$5.3M. Maps with descriptions for the outfalls are included in alphabetical sequence.
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CONCORD ROAD NORTH OUTFALL
During the design of the Concord Road Project it was determined that a drainage outfall would be needed
for the northern section of Concord Road. This outfall would drain an area that is bounded by Dogwood
Street on the south, U.S.69196/287 on the west,East Lucas on the north,and the Santa Fe Railroad on the
east In addition to providing drainage for the northern section of the Concord Road Project, it will also
provide relief to a portion of the Minglewood Subdivision. The estimated cost of this project is included in
Concord Road Phase III project.
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DELAWARE OUTFALL
(formerly known as Prince Street Outfall)
The Delaware Street drainage area covers approximately 1,350 acres.This area is bounded roughly by East
Lucas on the north, Pine Street on the east, Maple Avenue on the south, Concord Road on the southwest
and Detroit Avenue on the west. Natural ground elevation in the study area varies from 33 feet in the Fair
Park area to 5 feet in the area east of Pine Street and 10 feet in the area north of Lucas, the Hayes Gully
Outfall. Roadside ditches, which are not adequate to handle the amount of runoff, comprise 70%of the
drainage system in the project area This area is also comprised of four sections which drain independently
of each other.The northwest area drains into Hayes Gully Outfall,and the other three areas drain to the east
into Brakes Bayou.The completion of this project will require the installation of trunk lines, inlets,manholes
and connecting pipe improvements, which will provide for a more consolidated and effective drainage
system.The preliminary design is complete.The estimated cost of this project is included in Concord Road
Phase II project
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ECTOR STREET DITCH
The South Park water-shed area is prone to flooding during moderate to heavy rainfalls. The completion of
the South Park Relief Project Phase 1 by the City of Beaumont alleviated some of the flooding conditions.
All of the rainfall runoff from this project and the area drains into the Ector Street Outfall Ditch that crosses
under Cardinal Drive. This crossing is insufficient and requires upgrading. The City, Jefferson County
Drainage District#6 and the Texas Department of Transportation have agreed to share in,the cost of this
$1 million project. The estimated cost of the City's share is$380,000.
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FOLSOM ROAD.
Folsom is currently four lanes from West Lucas to Dowlen.Continuation of this project by developing a new
roadway through to Major Drive will provide a much needed connection in the vicinity of Parkdale Mall. It
will provide some relief froom the current and future levels of traffic demand. Other development on Major
Drive(private school, residential)will further create a demand for this roadway. The right-of-way for this
project has been secured. The estimated cost is$2,425,000.
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FRANKLIN STREET
The widening of Franklin between M.L Fling(MLK)and Neches will provide better aooess between MI_K and
Main(principal entrance into the Port of Beaumont)with the end goal of making this the primary route for
heavy trucks into the Port of Beaumont Intersection improvements at MLK and Franklin, as well as a two-
way left turn lane,will ease present and future traffic congestion.Estimated cost for this project is$Z 55,000.
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HIGH SCHOOL DITCH
There are two remaining phases of the High School Ditch project, South and North. Each section consists
of the installation of trunk lines, inlets, manholes and connecting pipe improvements that are required to
complete the drainage improvememts in the entire High School Ditch area.This area covers approximately
600 acres and is served mostly by an underground storm sewer system. The primary outfall for the High
School Ditch Drainage area is a 9 foot x 6 foot concrete box culvert which runs from Oxford Street under
the Southern Pacific Railroad tracks and South 11 th Street to a concrete lined ditch section near 13th Street.
The concrete lined ditch runs to near Highway 69, 96, 287, and IH-10, where the flow is carried under the
highway by three 7 foot x 8 foot concrete box culverts.The lined concrete ditch then conveys the flow from
the west side of the highway,approximately 1,300 feet to Hillebrandt Bayou Oxbow.The engineering phase
of this project is complete. Estimated cost for this project is$8,000,000.
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MADISON STREET
Madison Street, from Irving to Grove, is the primary truck route for the industrial district located east of
Carroll Street. The existing concrete pavement is deteriorating and should be replaced. Estimated cost for
this project is$1,500,000.
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MAIN STREET
The existing pavement on Main Street, from Calder to Blanchette, is beginning to experience numerous
failures as a result of an old waterline that runs underneath it After continually repairing the roadway, it is
now at the point that the entire roadway needs to be replaced.The estimated cost to reconstruct this four-
lane concrete roadway is$2,000,000.
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MAJOR DRIVE
Major Drive is a participation project with TxDOT specifically classified as a demonstration project. Our
funding provides for just the purchase of right-of-way and utility relocation that must occur prior to the state
proceeding with its construction project to widen Major Drive from Hwy 105 to Hwy 124. Total cost for just
ROW and utility relocation is estimated at$4M with TxDOT responsible for 80%or$3.2M. The City will be
responsible for the remaining 200/6 or$800,000. Currently the portion from Hwy 105 to Humble has been
completed.
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MOORE STREET RELIEF
The lock of roadside drainage facilities in residential areas, inadequate capacity within existing storm sewer
systems,and large paved areas within the Lamar University campus,all contribute to flooding problems.The
Moore Street Drainage Area is located within the southeast quadrant of the City and is generally defined as
the watershed contributing to the Moore Street Ditch. Drainage generally flows westward from Highland
Avenue and southerly from East Lavaca to University Drive,where storm sewer pipes convey the storm
water to the Moore Ditch Proposed improvements include the construction of storm sewers, the removal
of a concrete restriction at the old Lower Neches Valley Authority Crossing and realignment of the channel,
the installation of a box culvert crossing Highland Avenue and the replacement or modification of existing
inlets. The preliminary engineering design is complete. The estimated cost of this project is$4,000,000.
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NECHES RIVER HIKE • i BIKE TRAIL
This project would provide f• - construction of - and bike trail from • • • - Ferry Recreational r_ and Nature Preserve.The project •vo -• on -
1 viewshed and would provide
opportunity fortravelers on IH-10 to stop and viewthe Neches River and its habitat Because of the projecrs
location, been - - c• to receive federal funding from the Statewide Transportation Enhancement
Program through the Texas Department of •• r. r • D•T). Total project cost estimated at
$3,400,000 With TxDOT • • :1' of - cost.The Citys share is$680,000
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OLD DOWLEN
Due to the significant development in the Parkdale Mall area,a very high demand has been placed on Old
Dowlen Road between Dowlen and SH 105.While the Dowlen/Old Dowlen intersection has been signalized,
little room for improvement exists at the Old Dowlen/SH 105 intersection due to its dose proximity to US 69.
Accommodating the various intersection movements and traffic queuing will require the relocation of the
north section of Old Dowlen Road several hundred feet west This change would move the intersection
further away from US 69,and it would allow the installation of a traffic signal.Pavement widening to provide
a curb and gutter sbiret will allow greater traffic loads with much less required maintenance.Also included
is the reconstruction of Caswell through to US 69, which Old Dcwlen will connect to when relocated. The
estimated cost for this project is$2,600,000.
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PHELAN BOULEVARD
Phelan Boulevard west of Major Drive is a heavily traveled two lane roadway that provides access to West
Brook High School and the west end of Beaumont The current roadway cannot adequately handle the traffic
demand and requires widening to a four lane curb and gutter section. Estimated cost for this project is
$1,500,000.
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SOUTH PARK RELIEF
The remaining phases of the South Park Relief project includes constriction of laterals on Campus Avenue,
Zavalla Drive, East Woodrom, Kenneth Avenue, Saxe Street and Florida Avenue. Also included are
improvements to substandard inlets, manholes and connecting pipe. Estimated cost for this project is
$3,600,000.
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WALDEN ROAD
A development trend,is driving the need to improve Walden Road between Major Drive and I1-1-10. There
are businesses along Walden that utilize a number of heavy trucks.With the opening of the new Dishman
Elementary School, both contribute to the need for improvement. Estimated cast of this portion of the
roadway is$5,620,000. Continuation of this project from IH-10 to Fannett Road is esfimated at a cost of
$1,030,000.
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106
Capital Program 2001
General Improvements
Amount
Current Projects
Perlstein Park (Phase 1) $ 180,000 (1)
Total $ 180,000
Scheduled Projects
Airport Runway Extension $ 1,430,000 (2)
Fuel Farm Replacement - Municipal Airport 195,000
Southend Branch Library Construction 1,500,000 (3)
Total $ 3,125,000
Planned Projects
Athletic Complex-Tennis courts $ 275,000
EMS 2 Facility 315,000
Fire Headquarters -ADA Accessible 65,000
Municipal Court- Court Room 2 75,000
Playground Renovations 300,000
Radio Communications Improvements - Phase 1 175,000
Riverfront Park- Bank Stabilization 1,110,000
Telephone System Replacement 451,000
Tyrrell Park- Clubhouse 200,000
Tyrrell Park- Horse Stables 175,000
Total $ 3,141,000
(1) Includes $30,000 donation from the Perlstein family.
(2) Includes TXDOT funding of 90% or approximately$1.3M.
(3) It is anticipated that this project will be funded with HUD Section 108 funds.
107
CAPITAL IMPROVEMENT PROGRAM 2001-2005
GENERAL IMPROVEMENTS
AIRPORT RUNWAY EXTENSION
This project provides for the extension of runway 13-31 and its taxiway by
approximately 400 feet, the installation of runway lighting and markings for the
extended area, expansion of the aircraft parking ramp, and a seal-coat over the
existing runway, taxiway and ramp. The total cost of the project is estimated to be
$1,430,000. This project is eligible for Texas Department of Transportation grant
funding totaling 90%of the project cost. The City's share is estimated at$143,000.
ATHLETIC COMPLEX - Tennis courts
This project will replace the existing eight (8) tennis courts. Seepage of water
makes the existing courts,constructed in 1976,unsafe and unplayable after rainfall.
Estimated cost for this project is $275,000.
EMS 2 FACILITY
This project would provide for the purchase of a new EMS 2 Facility at 3020
Municipal Drive. "Medic 2"was previously stationed in a former City fueling station
at this address. Due to severe deterioration, the building was abandoned, but not
demolished. The City now rents a modular unit to house the medic team. A rental
fee of $5,760 is paid annually. The requested facility contains living quarters,
supply storage areas and covered parking for two to three units. Estimated cost for
this project is $315,000.
FUEL FARM REPLACEMENT
Due to the age of the Underground Storage Tanks (UST) at the municipal airport,
Environmental Protection Agency regulations require that the fuel tanks be
removed. The airport's fuel farm consists of two USTs, one for containing jet fuel
and the other aviation fuel. Total cost to remove and replace the fuel farm with
above ground storage tanks and dispensing equipment is$195,000. The new fuel
farm will consist of two 10,000 gallon above ground storage tanks, new delivery
driveway, tank to fuel truck dispensing and 24 hour credit card dispensing on the
ramp. A$20,000 grant for Texas Department of Transportation is available for the
project.
108
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MUNICIPAL COURT - Court Room 2
When the Municipal Court Building was renovated, Court Room 2 was left as an
open room for future expansion.This projectwould allowforthe completion of Court
Room 2 in a configuration similar to that of Court Room 1, including adequate
seating, juror's box, witness stand and judge's bench. This project has been
requested to relieve the court docket by providing two usable court rooms operating
simultaneously. Estimated cost for this project is $75,000.
PERLSTEIN PARK - Phase 1
The Park and Open Space Element of the Comprehensive Plan calls for a
neighborhood park in the Amelia area. A 7.2 acre tract of land in the Gulf Terrace
addition has been purchased for the site of the new park. Proposed improvements
include a parking lot,exercise trails/stations,spray device,creative playground and
shelter. A generous donation of$30,000 will be provided by the Perlstein family.
Total project cost is estimated to be $180,000.
PLAYGROUND RENOVATIONS
Existing playgrounds at Alice Keith, Chaison, Gilbert, and Roberts Parks are
outdated and require replacement.The equipment at Gilbert was removed in 1997.
The equipment at Alice Keith, Chaison and Roberts has served its useful life and
is no longer repairable. Estimated cost for this project is $300,000.
RADIO COMMUNICATIONS IMPROVEMENTS - Phase I
This project is first of a series of improvements designed to replace existing radio
communications equipment which is no longer manufactured, and new
replacements are not available. This project addresses replacement of existing
equipment, not expansion. Phase I would provide for the replacement of two major
categories of equipment including Base Station Units pnd Remote Controller Units.
Estimated cost for this project is $175,000.
RIVERFRONT PARK - Bank Stabilization
This project provides for 1,2255 feet of bank stabilization. The shoreline along the
west bank of the Neches River is eroding and the existing sidewalk supports are
exposed. The existing sidewalks on the north shore will collapse without support.
Estimated cost for this project is $1,110,000.
109
SOUTHEND BRANCH LIBRARY CONSTRUCTION
This project will provide for the construction of a new library facility in the south end
of the city. The current location of the Spindletop Branch Library is very crowded
and unable to grow.Due to this space limitation,an adequate supply of books is not
available and children's activities are limited. Cost of site aoquisition and
construction is estimated at$1,500,000. This project is eligible for grant funding.
TELEPHONE SYSTEM REPLACEMENT
This project would provide for complete new telephone systems at City Hall, Police
Department and Fire Headquarters. The existing systems at these locations are
outdated and only used or reconditioned parts are available. City Hall telephone
communications switch remains to be the hub for four sites and is at maximum
capacity at this time.Replacement of the switches would allow for future expansion,
include improved features, and would relieve the City of the precarious situation
that currently exists. Estimated cost for this project is $451,000.
TYRRELL PARK - Clubhouse
This project provides for the renovation of the clubhouse at the Henry Homberg golf
course. Estimated cost for this project is $200,000.
TYRRELL PARK - Horse Stables
The horse stable facilities at Tyrrell Park are currently unoccupied and in need of
extensive renovation. Approval of this project would allow for roof replacement;
extensive repairs to wooden stalls,including support columns;complete renovation
of stable restroom facilities to comply with ADA requirements; and exterior repair
and painting of the stable building, outdoor fencing and caretaker's house.
Estimated cost for this project is $175,000.
110
Capital Program 2001
Water and Sewer Improvements
Current Pro-ects Amount
Baffle Installation $ 80,000
Bunn's Bluff Canal 356,000
Lawson's Canal Pipeline & Pump Station 5,750,000
Prison Force Main _ 816,000
Water Storage Tank- North 5,300,000
Total $ 12,302,000
Scheduled Projects
Aeration Ponds Dredging $ 255,000
Alley Water Meters & Mains 960,000
Chemical Facilities - Liquid Lime System 847,000
Chlorine Dioxide Feed System 745,000
Dowlen Road Interceptor 2,204,000
Electric System Replacement 1,542,000
Eleventh Street Interceptor(Phase 1) 1,780,000
Eleventh Street Interceptor(Phase 11) 5,047,000
.Fitter Belt Press II 142,000
Filters and Clarifiers 6,167,000
Inlet Gates 51,000
Laboratory Refurbishing 158,000
Pond Aerators 158,000
Primary and Secondary Digesters 258,000
Sanitary Sewer Main Relocations 2,702,000
Sidewalk Replacement 113,000
Site Development 900,000
Standby Generator- Reclamation Plant 473,000
Standby Generator-Well No. 2 137,000
Washwater Facilities 583,000
Water Distribution Mains 2,743,000
Water Main Replacement ,. 3,250,000
Water Storage Tank- Loeb 393,000
Total $ 31,608,000
Planned Projects
Elevated Water Storage Tank $ 1,625,000
Envirex Boiler 108,000
Raw Sewage Hoist System 81,000
Salt Water Barrier 2,000,000
Standby Generator-Well No. 3 147,000
Twenty-Third Street Interceptor 2,684,000
Tyrrell Park Road Interceptor 1,597,000
Total $ 8,242,000
111
CAPITAL IMPROVEMENT PROGRAM 2001-2005
WATER AND SEWER IMPROVEMENTS
AERATION PONDS DREDGING
The dredging of two(2)aeration ponds is needed to remove and process 3.0 million
cubic feet of sludge. Excess sludge in the aeration ponds will hinder operations and
cause state and federal wastewater permit excursions. This project is needed to
comply with TNRCC regulations. Estimated cost for this project is $255,000.
ALLEY WATER METERS & MAINS
This project provides for the relocation of alley water lines and alley water meters
to street right-of-ways. This will replace the unlined cast iron alley pipes with low
volume and low pressure.The new lines will provide customers with adequate water
volume, water pressure and prevent interruption of water service. Estimated cost
for this project is $960,000.
BAFFLE INSTALLATION
This project provides for baffle installation/supports for three (3) settling basins at
the Water Production Plant. The baffles are required by the Texas Natural
Resource Conservation Commission to enhance the water treatment process and
improve water quality. Estimated cost for this project is $80,000.
BUNN'S BLUFF CANAL
Bunn's Bluff Canal dredging is needed to increase canal carrying capacity and
protect water supply from salt water intrusion. It is needed to improve the reliability
of the raw water delivery system. Estimated cost for this project is$356,000.
CHEMICAL FACILITIES - LIQUID LIME SYSTEM
This project provides for the installation of liquid lime system chemical facilities to
improve water treatment process and to comply with regulations from the TNRCC.
Estimated cost for this project is $847,000.
CHLORINE DIOXIDE FEED SYSTEM
The chlorine dioxide food system is needed to comply with Texas Natural Resource
Conservation Commission regulations. In addition, this project will improve water
quality. Estimated cost for this project is $745,000.
112
DOWLEN ROAD INTERCEPTOR
This project provides for the rehabilitation of the Dowlen Road sanitary sewer
interceptor from-Folsom to Phelan Boulevard due to poor structural condition of the
pipe. The existing sanitary sewer line is in a very poor structural condition.
Restoring the line will provide uninterrupted service to a very large area and reduce
maintenance cost. This is a requirement of TNRCC. Estimated cost for this project
is $2,204,000.
ELECTRIC SYSTEM REPLACEMENT
This project will provide for the upgrade of the electrical system at the Water
Reclamation Plant. The existing electrical system is very dangerous and very
expensive to maintain.The new system will provide a safe environment for workers,
automation of the wastewater plant, will save money, and improve operations and
reliability. Estimated cost for this project is $1,542,000
ELEVATED WATER STORAGE TANK
This project provides for the construction of a new elevated water storage tank at
Major Drive and Humble Road to provide additional elevated water storage for fire
protection and to provide adequate volume of water during peak hours. This is a
requirement of the TNRCC. Estimated cost for this project is $1,625,000.
ELEVENTH STREET INTERCEPTOR (PHASE 1)
This project provides for the rehabilitation of the Eleventh Street sanitary sewer
interceptor from Harrison to Washington. The existing sanitary sewer line is in a
very poor structural condition. Restoring the line will provide uninterrupted service
to a very large area and reduce maintenance cost. This is a requirement of the
TNRCC. Estimated cost for this project is $1,780,000.
ELEVENTH STREET INTERCEPTOR (PHASE 11)
This project provides for the rehabilitation of the Eleventh Street sanitary sewer
interceptor from Washington to the Water Reclamation Plant.The existing sanitary
sewer line is in a very poor structural condition. Restoring the line will provide
uninterrupted service to a very large area and reduce maintenance cost. This is a
requirement of the TNRCC. Estimated cost for this project is $5,047,000.
ENVIREX BOILER
This project provides for the replacement of the 1,250,000 BTU Envirex Boiler due
to the poor condition. This is a safety and operational/maintenance requirement.
Estimated cost for this project is $108,000.
113
FILTER BELT PRESS II
Installation of a second belt filter press is needed to replace the out of service unit.
The best filter press is used to dewater sludge. This is a TNRCC requirement and
a capacity requirement. Estimated cost for this project is $142,000.
FILTERS AND CLARIFIERS
This project provides for the construction of six (6) new filters and two (2) new
clarifiers to comply with regulation set by the TNRCC. This construction will
increase plant capacity from 27 MGD to 50 MGD. Estimated cost for this project is
$6,167,000.
INLET GATES
This project provides for the replacement of two (2) inlet gates at the wetwell main
pump room due to poor structural condition. This is an operational requirement.
Estimated cost for this project is $51,000.
LABORATORY REFURBISHING
This project provides for the refurbishment of the existing laboratory to provide a
safe environment for workers and improve lab performance. This is a safety and
operational requirement Estimated cost for this project is$158,000.
LAWSON'S CANAL PIPELINE & PUMP STATION
Lawson's Crossing pipeline and purrs station improvements are needed to comply
with the Environmental Protection Agency's Safe Drinking Water Act and to provide
reliable raw water delivery system. Upgrade of the existing pump station and
installation of 2.5 miles of pipeline from the east side of the Neches River to the
Water Production Plant. Estimated cost for this project is $5,750,000.
POND AERATORS
This project provides for the replacement of aerators for primary and secondary
aeration ponds. Existing aerators require constant maintenance. This si a TNRCC
requirement. Estimated cost for this project is $158,000
PRIMARY AND SECONDARY DIGESTERS
Primary and secondary digesters need to be cleaned by removing snails and solids
from inside the units. Units also need to be repaired and repainted. This is an
operational requirement. Estimated cost for this project is $258,000.
114
i
PRISON FORCE MAIN
This project provides for the installation of a 16" force main to provide adequate
capacity to all state and federal prisons.The existing 12"force main cannot handle
the increased sanitary sewer waste from all the prisons. Estimated cost for this
project is $816,000.
RAW SEWAGE HOIST SYSTEM
This project provides for the refurbishing of the hoist system in the raw sewage
main pump room. This is a safety and operational requirement. Estimated cost for
this project is $81,000.
SALT WATER BARRIER
This project provides for the Neches River Salt Water Barrier Project. The City's
share of the cost is estimated at $2,000,000.
SANITARY SEWER MAIN RELOCATIONS
This project provides for the relocation of sanitary sewer mains throughout the city
to accommodate new street and drainage improvement projects. Estimated cost for
this project is $2,702,000.
SIDEWALK REPLACEMENT
This project provides for the replacement of sidewalks at the Water Reclamation
Plant to provide safe access to isolated units for maintenance.The project will also
repair roadways and improve storm drainage inside the plant. Estimated cost for
this project is $113,000.
SITE DEVELOPMENT
This project provides for site development for operational requirements and flood
protection at the Water production Plant.Estimated cost for this project is$900,000.
STANDBY GENERATOR -RECLAMATION PLANT
This project provides for the installation of a standby generator for the Water
Reclamation Plant to maintain service to our residential, commercial and industrial
customers. The standby generator is needed to prevent sanitary sewer overflows
and ensure reliability of the sanitary sewer collection system. Estimated cost for this
project is $473,000.
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STANDBY GENERATOR -WELL NO. 2
Installation of a new standby generator at water well number two in Hardin County
is needed to ensure reliability of the ground water production. Estimated cost for
this project is $137,000.
STANDBY GENERATOR -WELL NO. 3
Installation of newstandby generator at waterwell numberthree in Hardin County
is needed to ensure reliability of the ground water production. Estimated cost for
this project is $147,000.
TWENTY-THIRD STREET INTERCEPTOR
This project provides for the rehabilitation of the 23rd Street sanitary sewer
interceptor from the Santa Fe Railroad to the Water Reclamation Plant.The existing
sanitary sewer line is in a very poor structural condition. Restoring the line will
provide uninterrupted service to a very large area and reduce maintenance cost.
This is a requirement of the TNRCC. Estimated cost for this project is $2,684,000.
TYRRELL PARK ROAD INTERCEPTOR
This project provides for the rehabilitation of the Tyrrell Road sanitary sewer
interceptor from Frint Drive to Fannett Road. This existing sanitary sewer line is in
a very poor structural condition. Restoring the line will provide uninterrupted service
to a very large area and reduce maintenance cost. This is a requirement of the
TNRCC. Estimated cost for this project is $1,597,000.
WASHWATER FACILITIES
This project provides for the construction of a washwater facility to comply with rules
and regulation from the TNRCC. Estimated cost for this project is $583,000.
WATER DISTRIBUTION MAINS
This project provides for the relocation of water distribution mains throughout the
city to accommodate new street and drainage improvement projects. Estimated cost
for this project is $2,743,000.
WATER MAIN REPLACEMENT
This project provides for the replacement of 2", 6", 8", 10" and 12" water mains
throughout the City due to the poor condition of the water mains which require
constant maintenance and interruption of service to our customers. In addition,
water main replacements are needed because of the loss of large qualitites of
treated water. Estimated cost for this project is $3,250,000.
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WATER STORAGE TANK - LOEB
The Loeb five-million gallon steel ground water storage tank is in poor structural
condition and it.is leaking. The inside of the tank has no paint coating protection.
This project will provide for the repair and repainting of the tank. Estimated cost for
this project is $393,000.
WATER STORAGE TANK- NORTH
This project provides for a five-million gallon ground water storage tank and new
high service/backwash pump station in order to meet future capacity as required by
the Texas Natural Resource Conservation Commission. Replacement of the north
water ground storage reservoir will provide reliable and adequate volume of
finished water_ Estimated cost for this project is $5,300,000.
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OTHER PROJECTS FOR CONSIDERATION
General Improvements
Protect Amount
Air Conditioning Duct Cleaning $ 160,000
Copiers Ferry Recreation Area - Bank stabilization 1,690,000
Colliers Ferry Recreation Area - Expansion 250,000
Communication Center and Network 4,000,000
Lefler Park 150,000
Mechanic Shop Addition 350,000
Perlstein Park- Phase li 150,000
Port Interchange Yard 720,000
Restroom Facilities -Alice Keith Park 125,000
Rooftop Air Handler 160,000
School Safety Sidewalk Program -Various locations 100,000
Total $ 7,855,000
Public Works Improvements
'project Amount
Avenue A -Virginia to Cardinal Drive $ 2,200,000
Broadway Box 1,500,000
Calder Avenue - 18th to West Lucas 1,000,000
Concord Road - Lucas to Hwy 105 8,475,000
Delaware - Dowlen to Major 3,500,000
Dowlen Road - College to Walden 4,000,000
Fannett Road Outfall 700,000
Fannin Street Box 8,400,000
Laurel Avenue & LaureltPheian connector 1,500,000
Rolfe Christopher Drive .• 1,250,000
Royal Street Outfall- Remaining phases 1,680,000
Twenty-Third Street- College to Washington 1,500,000
Twenty-Third Street Overpass 2,500,000
Virginia- Mercantile to Avenue A 2,500,000
Washington Boulevard - Langham to Major 2,500,000
Total $ 43,205,000
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OTHER PROJECTS FOR CONSIDERATION
AIR CONDITIONING DUCT CLEANING
To prevent particles of black soot from blowing onto employees'clothing, desk and
papers, mesh screens have been installed over air conditioning vents in Public
Works, Engineering and Human Resources office areas.These screens frequently
become clogged and they reduce air flow. To protect health and to improve the
quality and volume of air flow throughout City Hall, it is necessary that the duct
system be cleaned with a disinfectant. The duct has not been cleaned since its
original installation in 1978. Estimated cost for this project is $160,000.
AVENUE A -Virginia to Cardinal Drive
Avenue A from Virginia to Cardinal Drive is currently a two lane asphalt roadway
that will connect to the TxDOT proposed Spur 93. This new TxDOT highway will
provide better access to the prison system located in mid Jefferson County. With
the reconstruction of Avenue A into a four lane roadway,the increased traffic along
this corridor will be relieved. Estimated cost for this project is $2,200,000.
BROADWAY BOX
This project is designed to relieve the 204 acre area served by the Broadway Box,
by cross connecting the box with a parallel box in the abandoned Southern Pacific
Railroad right-of-wayand reconstructing or replacing damaged oroverloaded inlets.
This area runs between Eighth Street and the Neches River. Estimated cost for this
project is $1,500,000.
CALDER AVENUE - 18th to West Lucas
To relieve traffic congestion on Phelan Boulevard during peak hours,the widening
of Calder into a four-lane roadway from 18th to West Lucas is necessary.
Additionally,a significant increase in traffic has been realized due to the completion
of the West Lucas and Liberty/Laurel Overpass projects. Estimated cost for this
project is $1,000,000.
COLLIERS FERRY RECREATION AREA - BANK STABILIZATION
This project provides for 1,875 feet of bank stabilization. The shoreline along the
west bank of the Neches River is eroding and the existing road along the river will
have to be relocated without protection. Estimated cost for this project is
$1,690,000.
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COLLIERS FERRY RECREATION AREA- EXPANSION
The Parks and Open Space Plan calls for additional improvements at Colliers Ferry,
including expansion to the south of the existing park. Additional parking, trails,
shelters,piers,and site improvements are proposed to increase the public's access
to the Neches River and enhance the Neches River Hike and Bike Trail. Estimated
cost for this project is $250,000.
COMMUNICATION CENTER AND NETWORK
This project will provide for the consolidation of the City's communication network
into a new combined and centralized 800 MHZ system. The project includes the
construction of a new communication center on the second floor of the new
Municipal Court Building for the dispatching of fire, police and EMS services, as
well as, providing non-emergency and after-hours communications for operating
departments. The total estimated cost of the project is $4,000,000.
CONCORD ROAD - Lucas to Hn 105
This project will provide for a continuation of the reconstruction of Concord Road
through to Hwy 105. Estimated cost for this project is $8,475,000. Funding of
$7,375,000 has been approved by the Federal Highway Administration for this
project.
DELAWARE - Dowlen to Major
The extension of Delaware is required to provide an additional east/west corridor
from Eastex Freeway through to Major Drive. The limits of this project would run
from Dowlen Road to Major Drive.Most of the street right-of-way has been donated,
except in the area where an active tank farm exists. The oil field company
anticipates closing the tank farm by 2005. Upon completion of oil field activities, it
is anticipated that the property will become available for development. Property
acquisition could delay completion of the middle portion of the project, and may
require construction to be completed in more than one phase.The remaining right-
of-way requirements are contingent upon oil field activity completion.Estimated cost
for this project is $3,500,000.
DOWLEN ROAD -College to Walden
The extension of Dowlen Road to the south of College is needed to provide an
additional north/south corridor in the developing southwest area of the City.
Specifically, it will extend from College to Walden Road.The right-of-way has been
donated by property owners adjacent to the corridor. Estimated cost for this project
is $4,000,000.
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I
FANNETT ROAD OUTFALL
This project is required to improve the drainage in the Fannett Road area. The
construction of a trunk line system along Fannett Road to Harriot was recently
completed. It is now necessary to redirect the flows of existing ditches on each side
of Fannett Road into this trunk line system. Estimated cost for this project is
$700,000.
FANNIN STREET BOX
This project is needed to provide for more effective drainage of the Fannin Street
Box System which is approximately 490 acres. This project will include the
construction of 2,850 feet of concrete lined ditch, 8,200 feet of concrete boxes and
approximately 1,000 feet of pipe ranging from 18 inches to 72 inches. Engineering
for this project is complete. Estimated cost for this project is $8,400,000.
FIRE HEADQUARTERS -ADA Accessible
This project would provide for the installation of an elevator at Fire
Headquarters/Museum in order to meet ADA requirements. Estimated cost for this
project is $65,000.
HIGH SCHOOL DITCH
There are two remaining phases of the High School Ditch project,South and North.
Each section consists of the installation of trunk lines, inlets, manholes and
connecting pipe improvements that are required to complete the drainage
improvements in the entire High School Ditch area.This area covers approximately
600 acres and is served mostly by an underground storm sewer system. The
primary outfall for the High School Ditch Drainage area is a 9 foot x 6 foot concrete
box culvert which runs from Oxford Street under the Southern Pacific Railroad
tracks and South 11th Street to a concrete lined ditchsection near 13th Street. The
concrete lined ditch runs to near Highway 69, 96, 287, and IH-10, where the flow
is carried under the highway by three 7 foot x 8 foot concrete box culverts. The
lined concrete ditch then conveys the flow from the west side of the highway
approximately 1,300 feet to Hillebrandt Bayou Oxbow. The engineering phase of
this project is complete. Estimated cost for this project is $8,000,000.
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LAUREL AVENUE & LAUREUPHELAN CONNECTOR
Due to increased traffic from the Liberty/Laurel Project, the widening of Laurel,
between the IH-10 West Service Road and 23rd Street, into a four-lane roadway
is proposed. This project will relieve traffic congestion in the area, particularly
during heavy traffic hours. Also included is the provision for a direct connection
between Laurel and the Liberty-Laurel overpass project. The short connection
between these two projects is needed to complete the roadway system involved
with the 1-10 Overpass. This project, in conjunction with the Calder project, will
complete the arterial system in this area. Estimated cost for this project is
$1,500,000.
LEFLER PARK
Citizen requests and the Parks and Recreation Advisory Committee has
recommended an uncovered basketball court and additional parking at Lefler Park.
The part is a Community park and the master plan calls for a court on the east side
of the park. Estimated cost for this project is $150,000.
MECHANIC SHOP ADDITION
This project would provide forthe construction of a 60'x 100'mechanic shop facility
at the Lafin Road Fleet Service Center. The old former Municipal Transit Building
on Milam Street is currently being used by the Fleet Maintenance Division for
servicing equipment owned/operated by the Fire Department. Moving all of the
City's Fleet Maintenance operations to a single site would reduce operating costs,
allow for better utilization of available manpower, and improve management's
control over the quality and quantity of work performance. Estimated cost for this
project is $350,000.
PERLSTEIN PARK - PHASE 11
This project provides for parking, a walking path, additional landscaping, and a
picnic shelter at Perlstein Park. Estimated cost for this project is $150,000.
PORT INTERCHANGE YARD
As a part of the downtown revitalization effort,the City would like to take advantage
of its material resources and develop the riverfront behind the Civic Center and City
Hall. In order to make the development a reality, the City would need to purchase
the Port of Beaumont's Interchange Yard (6-7 acres) located between the Civic
Center and City Hall and Riverfront Park. Estimated cost for this project is
$720,000.
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RESTROOM FACILITIES -Alice Keith Park
This project would provide for new restroom facilities at Alice Keith Park. The
existing public restrooms are not ADA accessible and plumbing is very old with
frequent vandalism and sewer problems.Estimated costforthis project is$125,000.
ROLFE CHRISTOPHER DRIVE
The widening of this two-lane asphalt roadway from Virginia Street to Cardinal Drive
into a four-lane concrete roadway will greatly improve the flow of traffic around the
Lamar University area. Estimated cost for this project is $1,250,000.
ROOFTOP AIR HANDLER
This project would provide for the replacement of the rooftop air handler at City Hall.
The existing air handler unit at City Hall is 20 years old and in very poor condition.
The housing, door gaskets, and drain pans have deteriorated beyond repair.
Approximately 30 feet of duct is coated with asbestos containing materials. Water
is leaking from rusted through drain pans, causing built-up roofing materials to
deteriorate. Estimated cost for this project is $160,000.
ROYAL STREET OUTFALL -_Remaining Phases
Provides for the completion of Phases II, III, and IV of the Royal Street Outfall
Project. This project will be bounded by MLK Parkway on the east, Wall Street on
the north, Southern Pacific Railroad on the west and Irma Street on the south.
Estimated cost for this project is $1,680,000.
SCHOOL SAFETY SIDEWALK PROGRAM -Various locations
Prior to the beginning of the school year,a safe route to school map is prepared for
each elementary school. In conjunction with the safe route map,a listing of potential
sidewalk projects is developed that will enhance the safety of students walking to
school. The goals of the program are to serve the elementary school children;
provide sidewalks on high volume streets; provide sidewalks on streets with a large
pedestrian population; and provide a significant enhancement to the overall
sidewalk system. Estimated cost for this project is $100,000.
SOUTH PARK RELIEF - Remaining Phases
The remaining Phases of the South Park Relief project includes construction of
laterals on Campus Avenue,Zavalla Drive, East Woodrow, Kenneth Avenue,Saxe
Street and Florida Avenue.Also included are improvements to substandard inlets,
manholes and connecting pipe. Estimated cost for this project is $3,600,000.
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TWENTY-THIRD STREET - College to Washington
Twenty-third Street is currently a two land roadway with open ditches from College
Street to Washington Blvd. Development along this section of Twenty-third consists
of both commercial and residential properties.The commercial development exists
on each end with residential development in the center section.The reconstruction
of Twenty-third Street into a four lane concrete curb and gutter roadway will provide
an improved north/south corridor. Estimated cost for this project is $1,500,000.
TWENTY-THIRD STREET OVERPASS
Due to the impact of the Liberty/Laurel and West Lucas projects, the extension of
Twenty-third Street will be needed to maintain a smooth flow of traffic in this area.
This project will involve the rehabilitation of Twenty-third Street from Laurel Street
to the Southern Pacific Railroad tracks with the construction of an overpass at the
railroad tracks. Estimated cost for this project is $2,500,000.
VIRGINIA- Mercantile to Avenue A
Virginia Street is currently four lanes from Fourth Street to Mercantile Street. The
section from Mercantile to Avenue A is only two lanes with ditches on both sides.
The reconstruction of this section into a four lane concrete curb and gutter roadway
would provide a continuous collector between Fourth Street and Avenue A. This
construction would not require any additional right-of-way. Estimated cost for this
project is $2,500,000.
WASHINGTON BOULEVARD - Langham to Major
It is desirable to continue Washington Boulevard from Langham Road to Major
Drive as a four-lane arterial. The section from IH-10 to Langham Road was a
participation project with TxDOT and has been completed for several years. The
completion of the last section should be scheduled to.coincide with improvements
on Major Drive. Estimated cost for this project is $2,500,000.
125
Creation of Storm Water Utility
The 1987 amended Clean Water Act requires municipalities of 100,000 or more to establish
storm water management programs. A storm water utility provides a community with a cost-
effective alternative to address storm water management programs. The basis for
establishing most storm drainage service charges and rates is the degree to which a customer
uses or contributes runoff to the storm drainage program/system. The degree of use is
typically related to the property's contribution of storm water to the drainage system owned,
operated and maintained by the jurisdiction. The need for comprehensive approaches toward
storm water management stems from the alteration of natural storm water conditions and
from the development of"impervious area." Thus the degree or amount of use, and therefore
the size or amount of the charge, is in proportion to magnitude of the property owner's
contribution to the total volume of storm water runoff. A properly established storm water
utility:
1. Generates a steady flow of revenue into an enterprise fund for maintenance and
capital improvements to the storm water drainage system. Typical maintenance
activities include ditching, street sweeping, ditch mowing,pipe replacement and pipe
flushing.
2. Provides for an equitable or "fair share" method of revenue collection under a
structured user fee. The residential community, along with the business community,
will both contribute their proportional share in service fees based on their proportional
share of the problem.
3. Creates a semi-autonomous entity that has the ability to borrow funds. This separate
and dedicated enterprise fund also improves a community's eligibility for federal and
state funding.
4. A storm water utility fee would replace approximately $4 million in general fund
expenditures that could be used to pay for other services and provide financial
stability.
• Upon presentation of the feasibility study on May 19, should the City proceed with
the establishment of a Storm Water Utility for FY2002?
127
astdget Calendar
The budget calendar provides an approximate schedule of budget timelines and deadlines for the
input, submission and adoption of the documents required in the annual budget process.
Date Activity
February 15 Meet with City Manager regarding goals and assumptions for the Long
Range Financial Forecast and the Capital Improvement Program_
March 15 Submit Long Range Financial Forecast to City Manager for review.
April 1 Final date for City Council submission of Long Range Financial
Forecast
April 1 Meet with City Manager on Budget.
April 12 Send out BCapital Project Request Forma to departments for preparation
of the Capital Improvement Program.
April 13 Budget Manual sent out to departments.
April 15 Fleet request forms for Budget consideration retuned from department
directly to Fleet Division. Fleet to review and confer with requesting
department.
April!May 12 Establish Base Budget utilizing the current year adopted budget,as
adjusted.
April 24May 12 Electronic Budget entry by departments may begin..
April 24 Budget training 0 hour sessions)as needed. (Allow two days;call to
May 15& 16 schedule)
April 26 May 8 Departments return completed project worksheets for Capital
Improvement Program.
May-1 May 15 Copy electronic payroll information to budget work files to calculate
full-time personnel costs for FY 2001 Budget.
May May 11 Submit Capital Improvement Program to City Manager for review.
May 15 Final date for Council submission of preliminary Capital Improvement
Program.
May i8 May 22 Electronic entry of full-time personnel category Budget numbers by
Finance into Base Budget and Adjustment to Base versions.
May 19 Budget Summit with Council, City Manager and Department Directors.
129
June 1 Fleet requests due in Finance for electronic entry in Budget system.
3nae-5 June 7 Final date for electronic data entry by departments related to
Fundamental Budget and New Programs.
3nae 5 June 7 Program Budget Summaries due in Finance.
June 8-25 Initial review of Budget by Finance.
June 26-July 15 Budget Team review of all aspects of Budget with Department Directors.
July 1 Update letters for miscellaneous/statistical section of Budget mailed out.
July 14 Update letters for miscellaneous/statistical section of Budget due back in
Finance.
July 17-31 Schedule citizen participation meetings.
July 25 Tax planning begins.
August 15 Final date for Council submission of preliminary Budget. Set public
hearing day and time for Budget and Capital Improvement Program on
date budget submitted
TBA Must allow at least one full week between publishing notice and holding
hearing for Budget and Capital Improvement Program and tax rate if
required.
Hold public hearing for Budget and CIP.
Hold public hearing for tax rate that exceeds the lower of the
rollback rate or 103% of the effective tax rate.
If Budget increases, another public heating must be held
Must allow five days between publishing notice and holding hearing
for increase in Budget
September 27 Final date for City Council adoption of Budget and Capital Improvement
Program.
September 27 Adopt tax rate. BUDGET MUST BE ADOP'fED BEFORE TAX RATE.
September 27 Create accounts for next fiscal year which will troll ovens Budget
numbers in AS400. At this point,bfutureo purchase orders will be
accepted in the system
130
The Role of the Financial Improvement Team in the FY2001 Budget Process
The Financial Improvement Team(FIT)is comprised of business and community leaders that advise
the City Manager/Administration on critical issues of financial impact facing the City in the year
2000 and beyond. The members of FIT have demonstrated their commitment and dedication to the
improvement of Beaumont. They have met with the City Manager and staff at three meetings since
January 2000 to discuss alternative ways to finance local government other than property takes which
creates an unfair burden both in the business and residential community. They have reviewed
various fees prior to their presentation to Council for review and action. There have been extensive
discussion concerning the feasibility of establishing a stormwater drainage utility fee for the City.
Their direction and recommendations have been incorporated into the proposal presented to Council
at the 2000 Budget Summit. Their assistance will enhance the ability of the City
Manager/Administration to make better recommendations to Council and demonstrate increased
responsiveness to community needs.
The FIT Team will be assisting the Administration in creating a program to present the proposed
FY2001 budget to the community to solicit their input and direction in August,2000. There are four
neighborhood meetings proposed,one for each ward of the City. I have been discussing with FIT
an agenda and approach in presenting budget information to citizens to encourage their
understanding and assistance in allocating resources. I have also requested from FIT their ideas and
actions necessary to achieve a$2 million positive impact on the FY2000 budget through increased
revenues and fees and/or reduction in expenditures in order to develop a balanced budget for
FY2001.
The challenge at these neighborhood meetings is to determine an effective approach to present
budget information in an understandable meaningful way to citizens to encourage their assistance
in making budgetary decisions for 2001.
If Council's direction at the Budget Summit is to further consider the implementation of the
stormwater utility fee for FY2002 then I will work with FIT on developing a public education
initiative to ensure that there is increased understanding of this fee from all segments of the
community impacted by this funding alternative.
Members of FIT are encouraged to share their opinions on any issues of concern that have financial
impact. The members are: George Hudspeth,Ben Bundy,Nancy Beaulieu,Paul Trevino, Carlos
Hernandez, Eddie Arnold, John Breier, Greg Shepard, Karen Thomas, Sheri Arnold, Calvin
Williams, Robert Cortez and Gail Simmons
131
STRATEGIC ACTION PLAN
2000
PRIORITY INITIATIVES
QUARTERLY STATUS REPORT
JANUARY - MARCH, 2000
alp- 14
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"Creating Value In Public Services"
Mayor David W. Moore
Mayor Pro Tem Guy N. Goodson
Councilmember-At-Large Becky Ames
Councilmember-At-Large Andrew P. Cokinos
Councilmember,Ward 1 Dr.Lulu Smith
Councilmember,Ward 3 Audwin M. Samuel
Councilmember,Ward 4 Bobbie J. Patterson
Stephen J. Bonczek
City Manager
April,2000
STRATEGIC ACTION PLAN
2000
Priority Initiatives
QUARTERLY STATUS REPORT
JANUARY-MARCH,2000
The 2000 Strategic Action Plan reflects the continued commitment of the Mayor and Council to
the following strategic directions:
• Build and Diversify the Economic Base
• Revitalize Neighborhoods
• Improve the Visual Appearance of the City
• Maintain Financial Stability
The strategic actions identified are not all inclusive as the FY2000 budget provides department
program goals and objectives. The administrative goals and objectives in the budget were
reviewed and approved by Council in September 1999.
In order to support future growth and community development within the available funding,the
Council has prioritized projects, services and investment opportunities. The Strategic Action
Plan development occurred after numerous neighborhood meetings with Council,Administration
and residents. These community building efforts focus on empowering citizens to identify and
resolve neighborhood issues and assist the City in allocating limited resources to improve the
quality of life in their area.
The City Manager will provide periodic status reports on each issuelproject throughout FY2000
so Council can monitor progress in achieving these strategic actions.
With collaborative leadership among the Mayor/Council/Administration and citizens,the vision
of the City for the next millennium as a revitalized and economically diverse community will be
realized. '
Build and Diversify the Economic Base
Strategic Initiative Issue Owner(s) Due Date
• Prepare neighborhood economic Councilmember April, 2000
development plans in collaboration with Audwin Samuel
community eaders and residents in the City Manager
ty Executive Assistant to
Charlton Pollard, MIX corridor, Dick the City Manager/
Dowling and other target areas in East Economic Development
Beaumont. Develop implementation Director
plan with identified financing Planning Division
Manager
alternatives.
Finance Officer
135
Strategic Initiative Issue Owner(s) Due Date
Charlton-Pollard]Neighborhood.
The Charlton-Pollard Neighborhood Plan was adopted by
City Council in 1997. As a result of revitalization efforts
on the part of the City and others, 75 homes have been
built in the neighborhood. The City and Mobil are
currently working together to acquire property for a city
park and a commercial strip center. There are still two
properties yet to be acquired. Plans are currently being
drawn up for the park. In addition, the Junior League is
raising funds for a family life resource center to be built
adjacent to the park.
West Oakland/Pear Orchard Neighborhood:
The West Oakland/Pear Orchard Neighborhood Plan was
adopted by City Council in 1999. The City recently
acquired property at the corner of Sarah and Fannen for
the construction of the Southend Branch Library. City
Staff is also recommending the City's acquisition of the
remaining adjacent acreage for elderly/special needs or
single family housing. Owning the property would allow
the City to control how the property is developed.
The Avenues/College Street Neighborhood:
The Avenues/College Street Neighborhood Plan was
adopted by City Council in 1999 The City is acquiring
lots in the neighborhood for single family construction.
In the area, 3 homes are currently under construction.
Dick Dowling Neighborhood:
A rezoning of a portion of the Dick Dowling
neighborhood is scheduled for April, 2000. ,
Approximately 32 blocks are being rezoned to RS so that
single family homes can be built in the area. Current
zoning prohibits new single family development.
Martin Luther King Parkway Corridor Study:
In 1993,the City Council approved a sign overlay district
along the Martin Luther King Parkway that governed
signs.
South Park Neighborhood.
Staff has started initial work on a neighborhood plan for
the South Park neighborhood.
136
Strategic Initiative Issue Owners) Due Date
• As the City establishes a leadership role Mayor FY2000
cilmembcr Becky
in economic development through a non- Coun Coup
profit corporation there is a critical need City Manager
to effectively coordinate City efforts Executive Assistant to the
ment City Manager/Economic
with other economic development Development Director
agencies to avoid duplication and
enhance the area's capacity to
successfully grow the local economy.
The formation of the Beaumont Development
Corporation was discussed at a work session of
the City Council on March 28, 2000. The issue
will be discussed again at the Budget Summit
scheduled for May 19, 2000.
• In order to open up prime development Councilmembers Lulu March
areas the extension of Folsom and Smith and Guy Goodson 2000
City Manager
Delaware from Dowlen to Major are Executive Assistant to the
critically important projects. Folsom City Manager/Economic
Road extension has been designed and Development Director
Public Works Director
bids solicited. Delaware extension is on
the Capital Improvement Program Future
projects list. The Dowlen/Major/105
corridors are also identified as future
growth areas for quality development.
On March 7, 2000, the City Council accepted
bids on the Folsom Road Project. Additionally,
a preconstruction meeting was held on March
30, 2000. Construction is anticipated to begin
April 17, 2000. The Delaware extension and ,
Dowlen/Major/105 projects will be reviewed
during the FY2001 Capital Improvement
budget process.
Development Plans for the Folsom, Councilmembers September2000
Delaware,Major and 105 corridors will Lalu Srreth and Guy
Goodson
be prepared to ensure high quality Executive Assistant to the
projects compatible with City growth City Manager/Economic
Development Director
objectives are achieved. Planning Division Manager
No work has been done on plans for these
corridors.
137
Strategic Initiatives Issue Owner(s) Due Date
• Work with Main Street, Chamber of Mayor FY2000
Commerce,community business leaders Councilmember
Audwin Samuel
in revitalizing downtown Beaumont City Manager
through Crockett St., Jefferson Theatre Executive Assistant to the
and Hotel Beaumont restorations, City Manager
planning Division Manager
Neches Riverfront development
including Hike/Bike Trail, increased
market rate housing and other initiatives.
The City continues to work with Main Street in
revitalizing downtown Beaumont. The Hotel
Beaumont Project is approximately S0•/
complete. The Jefferson Theatre is close to
raising$3 million in private money to match the
City's 32 million grant The Crockett Street
Project is planned to commence construction
this summer. A survey to determine the
market for downtown housing. is currently
underway. The survey is being conducted by
Ipser&Associates,Inc.of Fort Worth withjoint
participation between the City,Main Street and
Beaumont Housing Authority.
• Collaborate with County, state officials Mayor FY2000
in facilitating the Southeast Texas Councilmember Andrew
Entertainment Complex planning,design Colanos
City Manager
and construction. Executive Assistant to the
City Manager/ Economic
The City has received a final site plan for the Development Director
Southeast Texas Entertainment Complex Plans Public Works Director
for the Visitors Center was reviewed by the Planning Division Mgr.
Regional Yisitors Center Committee on March
28, 2000. A for profit organization cannot be
considered due to federal money regulations.
The non-profit organization chosen will be
responsiblefor managing and stqfflngthe center
in lieu of rent including maintenance and
operational expenses such as electricity. It will
be open 364 days a year, dosed only on
Christmas Day. Final decision as to what
organization will operate the center will be
made by theJefferson County Commissioners
Court. The City has not approached the
Commissioners Court or been approached by
the Court relating to operating the facility. The
City is open to moving the Convention and
Visitors Bureau or staff" members to the
Entertainment Complex to operate the facility.
If the Regional Visitors Center Committee
solicits requests for proposals,the City plans to
submit a proposal. Additional information is
attached for Council review. 138
Strategic Issues Issue Owner(s) Due Date
• Reinstitute the Mayor's Breakfast Mayor February,
meeting to enhance the City/business City Manager May, August,
working relationship by listening, Executive Assistant to November 2000
the City Manager/
sharing information and resolving Economic Development
concerns of business leaders. This will Director
be a quarterly breakfast meeting of
Mayor, staff and approximately 50
business leaders.
A Mayor's Breakfast was held Aprill2, 2000 at
7:30 am. in the Civic Center.
• Invest City resources to address long Councilcnembers An& ,„ FY2000-2005
term capital improvement projects for Cokinos and aecky Ames
the fire training facility in order to City Manager
Fire Chief
increase students and maintain a Chief Training Officer
competitive training opportunity for
Industrial, Municipal and Volunteer
groups-
City Council approved additional employees (Welder,
maintenance)in March to expedite completion ofcritical
projects. A taskforce of 0ty Fire Department and Lamar
Representatives are preparing a S year strategic action
plan identifying important projects to enhance training
opportunities to attract more students. Project reviewfor
funding in the 2001-2004 CIP will be initiated.
Revitalize Neighborhoods
Invest City resources to address infrastructure Councilmember 3eckyAmcs FY2000
needs in neighborhoods and commercial areas City Manager
Executive Assistant to the city
including street/drainage and water/sewer Manager/ E c o n o m i c
improvement projects Devekopma t Director
Public works Director
The Streets and Drainage Division has completed
approximately 19,800 square yards of various types of
roadway repair and 23.5 miles ofditching this fiscal year
to date. The Water Utilities Division is preparing plans
to replace major sewer interceptors on Dowlen Road and
various small diameter sewer mains.
In order to enhance quality of life and support Councilmember Bobbie FY2000
neighborhood economic development efforts in Patterson
Southeast Beaumont the following City Manager
street/drainage projects need to be financed and Executive Assistant to
constructed - Blossom St. reconstruction, 23rd the City Manager/
St.-College to Washington,Avenue A-Virginia Economic Development
Director
to Cardinal Drive and Virginia-Mercantile to Public Works Director
Avenue A.
139
Strategic Initiatives Issue Owners) Due Date
All of the projects except Blossom Street are on the
Capital Improvement Program Future Project list. Each
of the projects will be reviewed during the Capital
Improvement Program(CIP)budget process to determine
which projects will be recommended for inclusion in the
FY 2001 CIP
As youth are a critical resource to families in Mayor
strengthening and revitalizing neighborhoods,a Executive Assistant to FY2000-2005
Youth Summit has been created. The Mayor's the City Manager/
Youth Summit empowers 50 high school Economic Development
students from City schools to meet. once a Director
month with the Mayor to share ideas and
concerns on community issues impacting youth.
There are recommendations to the Mayor of the
Student's voice in improving life opportunities
for young people.
The Mayor's Youth Commission was organized in the
summer of 1999 and had its first Meting in the fall of
1999. Members are students from Central High School,
Ozen High School and West Brook High School.
The students discussed the purpose of the Commission
and how they can make a contribution to the youth of the
community through the Commission.
One project they enjoyed working on was collecting
signatures for the Unites State Conference of Mayors
Hunger Petition,which the City of Beaumontparticipated
in. The City stands a chance to win up to$5,000 which
the Southeast Texas Food Bank has been designated to
receive.
The Mayor,City Manager and a representative from our
IS Department met with students from the Commission at
Ozen to discuss an idea developed from one of the
students to implement a Youth Web site. A meeting has
been set for Tuesday, May 2, 2000 at 4:30 p.m. in the
Council Chambers to further discuss this project with
student representatives from all three high schools. The
youth website would reflect the interests of young people
while addressing important community issues. The youth
website would be linked to the City's and other websites
for expanded access on the internet. The goal is to have
a preliminary website designed by one and of the school
year.
Meet with the Beaumont Independent School Councilmember Bobbie February
District to discuss City use of school facilities Patterson
City Manager 2000
after school for recreation and other Executive Assistant to the
programs/services. Consider the recent City Manager/Economic
legislation to allocate business franchise tax Development Director
Parks & Recreation
monies to schools/non-profits serving the needs Director
of children for funding. 140 Recreation Advisory
Commission
Strategic Initiative Issue Owner(s) Due Date
An agreement has been reached with the Beaumont
Independent School District to use some of their athletic
facilities,both during the school year,and in the summer
months.
The following facilities are currently used at no cost, or
a very nominal fee:
-ML King Middle School Gymnasium
-South Park Middle School Gymnasium
-Martin Elementary Gymnasium
These facilities are used for recreation purposes for two
(2) hours per day, two (2) times a week for a total of
twelve (12) hours per week B.I.S.D. charges the
department$9 per hour per location. Fees are waived for
the summer programs (June-August) six (6) hours per
day,per location,four(4)days a week.
B.LS.D. also has provided three (3) buses for
transporting our track teams to meets.
The department will continue to work with the B.I.S.D.on
making the use of their facilities free for our city
sponsored programs.
Enhance Emergency Medical Services(EMS)in Councilmembers Lulu Smith
the North area of City by adding a fifth EMS and Audwin Samuel March
unit and med station or private contractual City Manager 2000
ambulance service. Executive Assistant to the
City Manager/Economic
Development Director
The staff is actively working on opening an EMS station Public Health Director
to better serve the north end of the city, reviewing all
needed station requirements to be sure that they will be
adequately addressed. A lease arrangement will be
finalized on a facility on Concord Road,just north of
Judy Lane, after the final details are worked out.
Four of the seven paramedic positions are being .
processed for employment,the remaining three positions
are posted and are being recruited.
The staff'from the Fleet Division and EMS has been
working on the ambulance specifications. The last of the
needed modifications are being reviewed and will be
incorporated into the bid document. Staff expects to
solicit bids by April 28, 2000.
Create a Communities 2000 commission
Mayor
comprised of the President and officers from City Manager February
every neighborhood association in the City. Executive Assistant to the 2000
There would be monthly meetings with City Manager/Economic
Mayor/Council and Administration to discuss Development Director
and resolve critical issues and have citizen input
on allocation of resources for neighborhood 141
improvement.
Strategic Initiatives Issue Owner(s) Due Date
Mayor's office has compiled a list of the presidents of the
neighborhood associations, and will be setting up a
meeting to re-organize the Federation of Neighborhood
Associations into the Communities 2000 Commission.
Develop a plan to create a fully integrated Councilmembers Lulu FY2000
Public Health&EMS Department. The purpose Smith and Audwin Samuel
of this reorganized department would be to City Manager
Director of Public Health
provide better and more comprehensive public
health services to the community. Additionally,
this reorganization will expand the City's ability
to identify specific health care issue and link
those population groups with appropriate health
care services.
The Beaumont Public Health Department has begun to
move in the direction ofproviding primary and secondary
public health. This redirection in services will allow the
department to adopt the essential public health services
and better utilize its funds by eliminating any duplication
in services. A stakeholders meeting-comprised of
community health leaders will be held the week of April
10_ The department is also pursuing funds from Texas
Department of Health to assist in:
•Development of a comprehensive public health plan
-Hiring of an epidemiologist to interpret data inclusive of
necessary hardware and software
-Addressing disparities in health in minority populations.
Specifically a project that investigates and articulates the
underlying causes of risky health behaviors among
minority youth including but not limited to sexual activity,
substance abuse and violence that lead to diseases that
disproportionately affect minority populations.
This plan is the beginning of a truly integrated Public
Health/EMS mode.
Council will be kept informed of progress achieved in
these initiatives.
Design and construct a new facility for the Councilmembers Bobbie
Spindletop Branch Library. The new building Patterson and Andrew Colt;r" FY2000
will be located on the corner of I 1 th,Sarah,and city Manager
Director of Libraries
Fannett. Lbra y commission
An architectural services agreement was executed on
March 2 with Architectural Alliance, Inc. The architect
has begun facility programming for schematic design.
Also, the engineering firm of Mark Whiteley and
Associates, Inc. has been contracted to perform a site
survey of the property. This will enable the architect to
begin locating the desired building site. Cost of the
survey is estimated to be$6,350.
142
Strategic Initiatives Issue O%NmeAsl Due Date
Work with city staff to provide for the
consolidation of the City's communication City
network into a new combined and centralized Citty°r y Manager
Fire Chief
800 NM system. The project includes the Police Chief
construction of a new communication center on Central Services Director
the second floor of the new Municipal Court
Building for the dispatching of fire, police and
EMS services, as well as, providing non-
emergency and after-hours communications for
operating departments. The total estimated cost
of the project is $4,000,000.
The project is listed under other projects for
consideration in the 2000 Capital Improvement Program.
The availability of primary indigent health care CoumInu mben Lulu smith and FY2000
for some children is a serious concern to the Audwin Samuel
City sustainabili of families and neighborhoods. Executive Manages
tY � Executive Assistant to the City
There are funds for the Children Health Manager/Economic Development
//CHIP that provide
Director
Insurance Program l
� � p Drtector of Public Health
assistance for eligible children. Children who
don't meet the criteria for Medicaid from
families who can't afford insurance are at risk.
The challenge is to secure funding to do public
education on CHIP and direct care programs
from local physicians. A partnership with the
County will also be explored
The Administration is in the process of working with
Christus St. Elizabeth Hospital on disseminating
information to the community about C.H.I.P.-the
Children's Health Insurance Program-which will expand
available health insurance coverage to uninsured
children.
Chnstus St Elizabeth Hospital received State funding for
this purpose.
The increased growth in the northwest part of Councib"R"ber Guy Goodson FY2000
and tales smith
the City of families and businesses have City Manager
impacted police resources. The establishment of POUOG Chief
a northwest command station would facilitate Central Services Director
police law enforcement operations through
assignment of officers having a holding area for
arrested persons, reduction of travel time,
completing required reports, reduced time at
shift change and positive effect on gas usage and
vehicle maintenance.
143
Stratgdc Initiative Issue Owner(s) Due Date
The project is under renew for inclusion in the 2001
Capital Improvement Program.
Improve the Visual Appearance of the City
Work with the Planning Commission, CounciUnernber Guy Goodson March
Development Review Committee and City Manager
Executive Assistant to the City ZObO
Administration in creating a sign overlay district Manager/Econornic Development
for Dowlen, Gladys, Major and 105 area Director
Planning Director
addressing Billboards,add benches,monument Planning Commission
signs, amortization in order to achieve a more
aesthetically pleasing appearance of this major
development area.
The Development Review Committee met on February 24
to discuss the proposed regulations for the
Major/Dowlen/Gladys/Hwy. 105 Sign Overlay District.
Several issues arose at this meeting. There was a great
deal of discussion on the number and size of signs
allowed for single and multi-tenant developments. The
size of service station pricing signs was also a topic of
much discussion. Staff is developing regulations to
address these issues. Another meeting of the
Development Review Committee will be held in April.
Increase code enforcement efforts, housing
Councihriernbcr Andrew Cokitwa FY2000
rehabilitation and demolitions, landscaping, Executive Assistant to the city
beautification; upgrade of City facilities and Manager/Economic Devolopmmt
other initiatives to improve the appearance of Clean C
P aPP Clean Contnamity Director
neighborhoods and commercial areas.
Landscaping Ordinance.
City Staff and Beautify Beaumont, Inc. Have drafted
amendments to the existing landscape ordinance in order
to make it more user friendly.
The proposed ordinance will be reviewed by a Landscape
Development Review in April.
Code Enforcement Program
• Code Enforcement Officers have been placed
into inspection zones. Zones must be completely
inspected before advancing to next zone. This
has provided for a more thorough inspection
process.
• Field Supervisorisperformingauditinspections
of Code Enforcement Officers to monitor
accuracy, consistency and completion of work
• Results have shown an increase in the number of
notices issued for litter and junk motor vehicle
violations over FY99 as compared to FY00
(October thru February).
144
Strategic Initiatives Issue Owner(s) Due Date
FY99 FY00 +/- V change
Litter 539 590 +51 +9.46% .
Junk Motor Vehiele887 2,166 +1,279+144.19.0
Landscapintz. Lot Maintenance and Other Initiatives to
Improve Neiehborhoods
• Support is provided to BeautifyBeaumont, Inc.
with various landscaping projects. Currently
participating with landscape ordinance
revisions.
• Provide periodic assistance to the South Park
Neighborhood Association with landscaping
at Highland @ Lavaca commonly known as
the "Lavaca Triangle".
• TXDOT Spur 380 (MLK Parkway), Jefferson
County Sheriff Sale Property and Abandoned
Properties-All grounds maintenance activities
are performed by utilizing inmate labor from
Correctional Services Corporation and Jefferson
County Sheriffs Department
• Beaumont Paint-A-Thon is an annual project
that coordinates volunteers to paint the exterior
of homes belonging to low income senior and
disabled homeowners. This years project will
take place on April 29,2000. Coordination for
this project is provided by staff in conjunction
with the Keep Beaumont Beautiful Commission.
Litter Abatement Activities
• Contract with BeaumontProducts&Servicesfor
litter removal on arterial streets. Twenty eight
streets are currently cleaned on a monthly basis.
Additional streets and neighborhood block
areas are rotated in and cleaned on an as
needed basis.
• Adopt-A-Street program currently has 24
groups participating. Additional groups will be
added as interest in the program increases.
• Assistance is provided to Keep Beaumont
Beautiful Commission sponsored volunteer dean
up events. There are three major cleanup events
scheduled for the upcoming year.
Housinz Rehabilitation and Demolitions
• The backlog of structures awaiting demolition
has been cleared. In the future, condemned
structures will be demolished within two(2)
months of City Council's issuance of a
demolition order. Housing data follows:
145
Strategic Initiatives Issue Owner(s) Due Date
1998 1999 2000(Jan/Feb only)
Complaints 305 385 64
Inspections 1,411 2,320 274
Notices Issued 1,244 963 141
Rehabilitated Structures47 55 7
Demolition by Owner 17 19 0
Demolition by City 220 347 20
Keep Beaumont Beautiful Commission
• Support is provided to the KBBC by staff. New
By-Laws were adopted in October 1999 which
has helped the KBBC become better organized.
Plans to incorporate are under way with a final
goal of becoming an IRS recognized 501(c)3
organization. Community appearance and
environmental education are two primary goals
of the KBBC.
Weed Ordinance
• The weed ordinance was recently amended to
charge 3.01 per squarefootforpropertymowed-
This will result in increased revenues over the
next fiscal year. Based on the number ofparcels
and square footage cut during FY99 it can be
projected that the amount billed for mowing
services will increase. It is anticipated that
many property owners will begin to maintain
their property rather than pay higherfees which
was an objective of the rate increase.
Grants Administration
• The Clean Community Department was
successful in securing two grants from the South
East Texas Regional Planning Commission .
totaling 362,500. One grant will be used for
recycling/solid waste education and the second
will be for a Neches River Environmental
Awareness and Glean Up Day.
Selling ofLandfill Space
• The Clean Community Department has not
secured contracts to date for the selling of
landfill space. The Mid-County Municipal
League's disposal contract with BFI will expire
in July 2001. Staff has discussed disposal with
them and will have an opportunity to bid on
their business in early 2001. Landfill revenues
are increasing slightly.
• The Development Services Division has
conducted one hundred and seventy-two (172)
zoning inspections in FY2000 to date. 146
Strategic Initiatives Issue Owner(s) Due Date
The owner was notified at eighty-nine(89)of the
locations that a violation existed.
Maintain Financial Stability
Explore alternative revenue services to the Councilmembcr Guy Goodson April
property tax such as fees, increased use of Executive Assistant to the City 2000
federal/state grants, increased collections of Ma=M/Economic Davclopment
Director
money due City, sale of City assets, etc, while Finance O ficcr
maintaining sensitivity of impact on various
segments of the community.
Existing revenues related to the Civic Center, health fees,
clean community charges and building permitfees charges
have been reviewed and increased Alarm permit renewal
fees have been reinstated. The creation of a stormwater
utility district which could produce up to a4,000,000 in
new revenues is under review. Fire service fees have been
approved but not implemented to date. Increased staffing
relative to EMS billing has resulted in increased
collections in this area. Several departments have
applications pending for various state/federal and non-
prof t grants. The Library is in receipt of a TIF grant and
anticipates funding from Gates Foundation.
Analyze allocation of resources for Councilmembers Becky Ames FY2000
programs/services and capital projects to ensure and Bobbie Patterson
City Manager
equitable distribution throughout the community. Finance Officer
TheAdministration recently performed an analysis of City
general fund revenues expended in each ward for the past
S years. There was some disparity identified due to the
need to make a substantial investment in the ward 3 and 4
areas based on prior inadequate allocation of resources
resulting in significant deterioration ofproperties and City
facilides/infrastructure. This study will be updated on an
annual basis.
147
Twenty Year Retirement
The City is evaluating the implementation of "20-year Any Age"retirement options in the
Texas Municipal Retirement System (TMRS) for civilian and Police employees. The Fire
Department already has 20-year retirement for Fire Civil Service employees. Currently,
Police and civilian employees are eligible to retire with 25 years of service regardldss of age.
The City's TMRS contribution rate for 2000 is 10.09 % of payroll.
TMRS is estimating that the contribution rate for 2001 will be 10.11% of payroll. Twenty-
year retirement estimated contribution rate is .18%. This would total 10.29% of payroll for
2001. Based on annual payroll of $37,111,841, the estimated dollar cost for the plan
improvement would be $66,801.
Advantages of implementing the 20-year retirement:
• Potentially a cost savings factor because the City would pay a lower pension amount.
• The City's total reserves would be smaller because the City is having to match less due
to less pension amount.
• Employees retiring at a younger age and being replaced by a younger person results in
the average age of the employee decreasing which effects TMRS, medical and life
insurance rates.
• Generating turnover and creating opportunities for promotion from within.
• It will boost employee morale and assist in attracting/retaining qualified staff.
Disadvantages of implementing the 20-year retirement:
• The City would be contributing more than they otherwise would have contributed.
• If employees do not utilize the plan, the City contribution rate will be more than they
would have contributed. .
Employees who are interested in electing the"20-year Any Age"plan would have to inform
the City between August 1, 2000 and September 30, 2000. Their retirement would be
effective between October 1, 2000 and January 31, 2001. An incentive for employees to
utilize the 20-year retirement is a 50% reduction in retiree insurance rates from October 1,
2000 until September 30, 2001. For an employee with two or more dependents in the
indemnity plan, the cost to the City would be $2,352/year.
149
Budget Impact
Currently the only twenty-year retirement available to City employees is available to
firefighters. To implement a twenty-year retirement for the remaining employees (civilian
and police) would have a budget impact, across funds, of approximately$66,801:
This cost would be offset by the savings created by the retirement of eligible employees. The
breakeven point would be reached if two employees opted for the retirement and those
positions were not filled. If the positions are filled it would take eight retirements to
breakeven.
20 Year Retirement(Police and Civilian)
Total cost to implement $66,801
Average salary of those eligible 33,952
Average offset if position eliminated 33,952
Average offset if position filled 8,488
General Fund breakeven (2 unfilled, 6 filled) 50,928
General Fund breakeven with incentive (3 unfilled, 8 filled) 76,392
Compensation Plan Funding (equivalent)
Elimination of 15 positions 509,280
Offset if 59 positions filled 500,792
• Should the City institute a "20-year Any Age" retirement option with a one-time
medical benefit incentive for all employees except fire?
150
Classification/CoMpensation Study
The City has engaged a consultant,Condrey and Associates,from Athens,Georgia,to audit
its current Classification/Compensation Plan, which has not been done since 1984. The
purpose of the audit is to ensure that City employees are being paid an equitable salary in
comparison to other cities of similar size and local private sector employers. Thd City has
hired and trained employees only to lose them to local employers who pay more.
Each employee was required to complete a position description questionnaire by April 5
indicating that individual's job duties, supervisory controls, scope and effect, complexity,
personal contacts, and physical and educational requirements.
Condrey and Associates interviewed over 600 City employees during a two and one-half
week period.These interviews allowed them to gain first-hand knowledge of the employees'
jobs.The results of the interview along with the position description questionnaire will allow
Condrey to evaluate positions and audit the accuracy and reliability of City job descriptions.
Condrey and Associates are surveying 100 other cities and local private companies on 79
benchmark positions. Benchmark positions provide a base from which to classify other
similar jobs at either higher or lower levels or with the same level of responsibility.
After evaluations and recommendations are completed,Condrey will return to Beaumont on
June 19 and 20 to discuss results with each department director.It is anticipated that Condrey
will return to Beaumont on June 27 to present the recommendations to City Council.
Condrey has indicated there are needed changes in salary schedules increasing pay ranges
to more equitable rates. There is also inequity within the grades based on longevity of
employees.Condrey will provide a recommendation that will create equity within the ranges.
Implementation of the recommendations from Condrey and Associates is proposed to be
done in two or more phases due to budgetary constraints. The first phase of$500,000 of
salary adjustments is proposed for implementation on October 1, 2000.
• Does Council support allocating$500,000 in FY2001 among various funds to adjust
employee compensation based on the results of the Condrey study?
151
Water and Wastewater Capital Imurovements
The City is currently undertaking a major Capital Improvement Program for the water and
wastewater system. Most of these improvements are required due to new state and federal
regulations that will be taking effect in the next several years. These regulations include
changes to the Safe Drinking Water Act and Clean Water Act requirements and new Texas
Natural Resource Conservation Commission standards. In addition,the city's infrastructure
is aging and in many parts of the system are in need of rehabilitation or replacement. The
City has also experienced some growth in recent years with residential and commercial
development and with the addition of several Federal, State and County Correctional
Facilities.
The Administration identified, during the Partnership in Governance Meeting with City
Council in October 1999, the water and wastewater system as a strategic issue.
Approximately $30 million of water system and $70 million of wastewater system
improvements are needed to meet these regulations and to rehabilitate the systems.
Development of the recommended Capital Improvement Program will require major capital
expenditures. The City retained the engineering firm of Freese and Nichols to prepare a
water"and wastewater rate study to determine the rate increases needed to fund the capital
improvements.
In a report to City Council on May 9, 2000, the consultant indicated that an increase in the
water and wastewater rates would be necessary to fund the$55 million of the improvements
proposed for the next five years.An increase in rates of thirty(30)percent for 2000-01,four
(4) percent for 2001-02,four(4)percent for 2002-03, and four(4)percent for 2003-04 will
be necessary to fund the needed improvements.
• Does City Council support Phase I of the Wafer and Wastewater Capital
Improvement Program including the proposed rate increase to fund the necessary
improvements?
152
CITY OF BEAUMONT
SCHEDULE OF PURCHASES,SALES AND MATURITIES
April 30, 2000
SCHEDULE OF SALES AND MATURITIES
Purchase Face Principal
Date Description Amount Invested Sale Price
04/01/00 Texpool 04/30/00 1,000,000 1,000,000 1,000,000
1,000,000 1,000,000 1,-600,000
Summary Of SalgiAnd MpAu it eaLTo Date;
Current Year Prior Year
Average Holding Period Yield 5.268% 5.456%
Market Gain/(Loss) — --
44
CITY OF BEAUMONT
SCHEDULE OF COLLATERAL
April 30,2000
Face Market Total
Description Amount Value Investments '
L PRIMEBANK
FDIC 100,000 100,000 2,946
HIBERNIA NATIONAL BANK
FHLMC 6.500 03/01/14 Cusip# 1294JV47 4,679,967 4,479,196
FNMA 6.494 11/01/28 Cusip#31382LPL4 1,774,223 1,727,224
FDIC 100,000 100,000
6,554,189 6,306,420 2,709,347
6,654,189 6,406,420 2,712,293
Reflects ledger balances at month end for the purpose of evaluating pledged collateral.
45
Total Revenues
at 04130
$50
$40
cn $30 ' i ❑ 1998
❑ 1999
_ _. ..--- - - ------- � ■ 2000
$20
$10
$0
General Water Solid Waste
Fund Fund Fund
47
Total Expenditures
At 04/30
$40
i
$30
❑ 1998
o` ❑ 1999
$20
-- - --- ----- — _� �, 02000
I
$10
i
- i
$0
General Water Solid Waste
Fund Fund Fund
48
Fund Balance
At 04/30
$20
$15
❑ 1998
° ❑ 1999
$10
02000
$5
$0
General Water Solid Waste
Fund Fund Fund
49
Fiscal-Year End Fund Balance
$10
$8
$6 ❑ 1998 Actual
° 1 ❑ 1999 Actual
s 2000 Projected
$4
i
$2
$0
General Water Solid Waste
Fund Fund Fund
50
DEBT SERVICE FUND
iF-
Fund Balance
No two cent shift in tax rate from General Fund
4
F7
h 0
0
2 -2i..
-4
I
i
- - — -- — j
2000 2001 2002 2003 2004 1
FFund Balance
Two cent shift in tax rate from General Fund
1 4 � - —
i
3 :.
j
2 ;
I c j
� I
0
I
i
j -1
i
j -2 - - - -
2000 2001 2002 2003 2004
The assumption used in this presentation includes the issuance of$20M in Certificates of
obligation in early FY 2001 and FY 2003 and assessed value (AV) growth of 3.75% in FY 2002
and 2003 and a 3.5% in FY 2004. Preliminary estimates for AV in FY 2001 indicate a 2.8% growth.
As evidenced by this graphical presentation, even with the two cent shift from the General Fund
to the Debt Service Fund, additional revenues will be required in FY 2002 in order to maintain an
adequate fund balance of 20% of debt service requirements. Additional revenues will be required
in FY 2002 (prior to the potential $20M FY 2003 issue) as the fund balance would be at 9.3%.
51
STATUS OF SECTION 108 PROJECTS
In 1998, the City of Beaumont received approval of Section 108 funding in the amount of
$11,000,000 from the Department of Housing and Urban Development. The Section 108
Program is a loan guarantee provision of the Community Development Block Grant(CDBG)
Program whereby municipalities can borrow up to five times their annual CDBG allocation. The
$11,000,000 loan will be repaid by the City and project developers over a 20-year period.
Crockett Street-The Beaumont City Council approved a Section 108 loan for the
Crockett Street Project in the amount of$3,000,000 in August of 1998. The total project
cost is estimated at $5,700,000. The project is the redevelopment of the"Dixie Street"
commercial block in downtown Beaumont. The developers plan to redevelop the two
story historic storefront buildings into a combination of entertainment, eating, and
drinking establishments. Approximately 300 permanent jobs would be created upon
completion of the project. A ground breaking ceremony is scheduled for Wednesday, May 17,
2000.
Hotel Beaumont- The Council approved a request from the National Development
Council for Section 108 funding in the amount of$3.175 million($2.0 million loan and$1.175
million grant) in December of 1998_ The National Development Council is completely
renovating the Hotel Beaumont, located at 625 Orleans Street. Currently, there are 75 occupied
units at the Hotel Beaumont with plans to increase that number to 135 after the renovation is
complete. The total anticipated project cost is $7,495,000. The project is 50%complete.
Jefferson Theatre- Council approved Section 108 funding in the amount of
$2,000,000 (grant) in September of 1998. The Theatre will be restored as close as possible
to its original design. In 1996, a concentrated effort was initiated to mobilize over
150 civic leaders and area citizens to undertake a comprehensive planning process
and capital campaign with a goal of raising $3,000,000 in addition to the $2,000,000
grant from the City. To date, private donations total nearly $2,500,000.
Theodore R.Johns Sr.Branch Library- Council approved Section 108 funding in the amount
of$1,825,000 for the construction of a new library,the Theodore.R. Johns, Sr. Branch. The new
library will replace an outdated facility, the Spindletop Branch, currently serving the south end of
Beaumont. The building will be approximately 12,000 square feet on a five-acre site at the
intersection of State Highway 124 (Fannett Road) and Sara Street. The library is currently in the
design phase and construction is projected to commence within five months.
L.L.Melton YMCA-Council approved Section 108 funding in the amount of$1,000,000
(grant) for the renovation of the L. L. Melton YMCA and the construction of new facilities.
Final preparation of the design work for the new facilities is now being conducted. When the
detailed project information is received by the City of Beaumont, a detailed summary will be
sent to the Department of Housing and Urban Development(Fort Worth Office). Before the
information is sent, a 30-day comment period is required whereby the public can review the
application. If the project is approved in the HUD - Fort Worth office, the project then has to
have final approval by HUD - Washington before funds are provided to the City.
53
Good News/Bad News
The Good News
O Increase in ending General Fund Balance FY 1999 - Actual
over Projection (+$700,000 after audit)
O Ending General Fund Balance FY 2000 "Projected"
(-$500,000 rather than -$1.1 M as budgeted)
• FY 2000 Ending Fund Balance projected to be 11%
• Entertainment Complex Feeder Road State Participation
($2.8M Savings)
O Sales Tax revenues to date exceed estimates by 2.4% - may
compensate for "Holiday"
O EMS collections are projected to exceed budget by $700,000
O Library has been awarded several technology grants totaling
$272,770
O Building Permit issuance to date has increased 5.3% over FY
1999
The Bad News
O Wading Pool Replacement - Cost from low bidder was
$345,000
O Higher cost of fuel (fleet) - March 1999 cost: $.61/gallon;
March 2000 cost: $1.12/gallon
O Unknown cost impact of Sales Tax Holiday
O Preliminary Property Tax values at 2.9% growth (5%
assumption used in Long-Range Financial Forecast)
55
CITY OF BEAUMONT
BILLING AND COLLECTION REPORT•EMS SUMMARY
For-the period ended April 30, 2000
Current Month: April-2000
Total %Collected % Collecte
Number Gross Billed Adjustments Net Billed Revenue To Gross To Net
Billed (1) Collected(3) Billed Billed
Medicare 202 78,975 17,083 61,892 49,597 - 62.8% 80.19
Medicaid 119 44,100 36,187 (4) 7,913 24,922 56.5% 315.00,
Other Insurance 142 54,595 19 54,576 70,752 129.6% 129.60,
Self Pay 271 93,620 430 93,190 8,961 9.6% 9.60,
Total 734 $271,290 $53,719 $217,571 $154,232 56.9% 70.90,
Fiscal Year-To-Date: October,1999 thru April 2000
Number %Collected % Collectec
Billed Gross Billed Adjustments Net Billed %Of Total To Gross To Net
Y-TD Y-TD(2) Y-T-D Y-T D Net Billed Billed Y-T D Billed Y-T-t
Medicare 1687 650,617 177,556 473,061 25.7% 54.1% 74.4%
Medicaid 791 290,880 173,162 117,718 6.4% 43.6% 107.70A
Other Insurance 1386 463,140 11,538 451,602 24.5% 99.6% 102.1 T,
Self Pay 2319 808,603 9,357 799,246 43.4% 7.7% 7.80,E
-otal 6,183 $2,213,240 $371,613 $1,841,627 100.0% 45.3% 54AoA
Revenue Revenue Over/
Estimate Collected %Of Total (Under)
Y-T-D Y-TD(3) Collected Estimate
Medicare 176,953 352,018 35.1% 175,065
Medicaid 63,522 126,724 12.6% 63,203
Other Insurance 231,904 461,263 46.0% 229,359
Self Pay 31,760 62,186 6.3% 30,426
Total $504,139 $1,002,191 100.0% $498,053
Analysis of Outstanding Accounts:
Active Collection Installment
Accounts Accounts Accounts Total
Medicare 139,610 139,610
Medicaid 209,951 209,951
Other Insurance 102,335 102,335
Self Pay 2,282,745 14,576 2,475 2,299,796
Total $2,734,641 $14,576 $2,475 $2,751,692
-'tilling for dates of service Mar 22, 2000 to Apr 20,2000.
milling for dates of service Aug 21,1999 to Apr 20, 2000.
(3) Includes collection on delinquent accounts-agency collections net of fees and refunds
(4) Increase in Medicaid adjustments resulting from appeals filed on claims from prior months, the difference in charges billed an
charges allowed and denied claims must be written off.
2000:-BUDGET SUMMIT
FINANCIAL AND BUDGETARY CHALLENGES
Reinventing and Re-engineering for the Next Millennium
In order to meet the increasing challenges of reduced or limited funding and increased citizen
expectations for service, the City must explore ideas to reduce cost, generate revenue and
increase service quality.
It is important to match the taxes and fees that the public is willing to pay with the cost of
services that the public demands. When a City government is involved in "rightsizing" a
service cost that means having the right number of people with the right kind of skills and
training, the right amount of supplies and just the right amount of physical plant and
equipment to provide service properly.
"If you downsize,you're cutting costs but you're not fixing
fundamental problems."
W.Edwards Deming
Reinventing government is a process of changing the fundamental way government operates.
This process is comprised of the following 10 principles:
1. Catalytic Government: Steering Rather Thank Rowing
2. Community-Owned Government: Empowerment Rather Than Serving
3. Competitive Government: Injecting Competition Into Service Delivery
4. Mission-Driven Government: Transforming Rule-Driven Organizations
5. Results-Oriented Government: Funding Outcomes,Not Inputs
6. Enterprising Government: Meeting the Needs of the Customer, Not the
Bureaucracy
7. Enterprising Government: Earning Rather Than Spending
8. Anticipatory Government: Prevention Rather Than Cure
9. Decentralized Government: From Hierarchy to Participation and Teamwork
10. Market Oriented Government: Leveraging Change Through the Market
.r;7
The concept.of re-engineering extends beyond the basic improvement of an existing process
It means fundamentally changing an existing process.or eliminating it totally. Therefore,
reinventing and re-engineering are two approaches that are compatible and necessary if
significant changes are to be made to provide the most efficient and cost effective services
to our customers.
A reinventing/re-engineering process provides the Mayor and Council various policy options:
Provide services differently or at a different service level
Raise revenue (fees and/or taxes)
Ask for understanding for a declining City and reduced service levels
The use of reinventing/re-engineering provides significant cost savings for the long-term
financial stability of the City by:
Determining services to be eliminated
Identifying subsidies to be discontinued
Determining appropriate service levels focusing the organization on mission,
engendering an entrepreneurial spirit throughout the organization
The reinventing/re-engineering process involves important activities to establish a proper
environment to realize cost savings and service quality enhancement.
COMPETITIVE GOVERNMENT
INJECTING COMPETITION INTO SERVICE DELIVERY
Most obvious advantage of competition is greater efficiency or more bang for the
buck.
Competition forces public or private monopolies to respond to the needs of their
customers.
Competition rewards innovation; monopoly stifles it.
Competition boosts the pride and morale of public employees.
Competition must be carefully structured and managed, if it is to work...unregulated
markets generate inequity..
PRIVATIZATION TECHNIQUES
Service Shedding. A'form of total privatization in which government stops providing a
service entirely.
Contacting Out. The City contracts with a private organization, for profit or nonprofit,
to provide a service.
Public-Private Competition. Public in-house units compete against private firms to
provide a public service.
Franchise. A private firm is given the exclusive right to provide a service within a
certain geographical area for a limited time.
Vouchers. Government provides individuals with certificates redeemable for purchase of
a good service on the open market.
Subsidy. The producer of the service is subsidized by the government contributing
financially or in-kind to a private organization to reduce the cost of private provision of
service to consumers.
Internal Markets. Government departments are free to purchase services form either the
private sector or internal support units.
Asset Sale or Lease. Government sells assets such as airports, utilities or real estate to
private firms, thus turning physical capital into financial capital.
Volunteers. Volunteers are used to provide all or part of a government service.
Self-Help. Community groups and neighborhood organizations take over a service or
government asset such as a local park.
Private Infrastructure Development. The private sector builds, finances and/or
operates infrastructure such as roads and airports, recovering costs through user charges.
Deregulation. Government regulations are eliminated to allow private providers to
compete against a government provider; for example, allowing firms to compete with the
U.S. Postal Service.
59
THE CORE CONCEPT
Does the activity fit the organization's strategic plan?
Does the activity produce more value for the customer than it consumes in
resources?
If not, why is the organization doing this?
Crucial to all downsizing or rightsizing efforts is deciding on what the organization does
well. Rational resource allocation simply means putting scarce resources to good use.
Government activity should produce more value than it consumes.
"Unless we change our direction, we are likely to end
up where we are headed."
-Old Chinese Proverb
The following are critical activities to support the reinventing/re-engineering process:
Create a mission and shared vision of the community and organization.
Embrace the primary values of the organization.
Mayor/Council sets strategic goals and objectives.
Mayor/Council sets priorities and eliminates programs that do not support the mission
of the City.
An effort is made to reduce organizational layers as part of streamlining the
administration.
All non-essential work that does not provide value to the customer is eliminated
through improving work processes.
* Implement a quality improvement/customer service perspective.
Emphasize performance measures for all services areas.
Explore alternative service delivery approaches.
Create meaningful opportunities for citizen involvement.
Communicate the results of the process to the organization employees and
community.
Celebrate the success achieved!
60
ORGANIZATION GUIDELINES
Is it the right thing for the community or organization?
Is it the-right thing for the department?
Is it ethical and legal?
Is it something you are willing to be accountable for?
* • Is it consistent with the organization values and policies?
When the answers to all of the above questions are yes, the guidelines state "just do it" and
don't bother asking for permission or forming a committee to decide. That is the sort of
policy manual that encourages employees to think; and when employees think, they can
create with flexible, innovative solutions and services for their customers.
The funding strategies to be utilized in reinventing/re-engineering focus on the following
areas:
Preserve and enhance the capital improvements program and planning
process.
Commit to not substituting City funding for reductions in state or federal
funding programs.
Reduce personnel positions by attrition when feasible by managing
vacancies through a hiring freeze.
Identify best practices through benchmarking - search for best practices that
will lead to aggressive internal goal setting and ultimately improved
performance; best practices are compiled and'become the standard against
which the local government compares itself.
Survey citizens to understand demands and expectations for service - use
surveys to understand the level of service citizens expect from their local
government.
Emphasize user fees as opposed to increase in taxes.
Maintain a reasonable fund balance.
Develop productivity initiatives and gain-sharing with departments that are
successful in reducing costs while maintaining or increasing service quality.
61
Institute an aggressive program to procure federal/state grants to address
identified priorities to the City.
"The onlyperson who likes change is a wetbaby."
-RoyZ M.Blitaer
There are other important aspects to reinventing/re-engineering that Mayor and Council need
to consider prior to a major commitment.
*. To be successful, long-term financial forecasting and planning is essential.
However, unexpected and unpredictable events can and will occur to
impact any forecast no matter how well prepared.
The Mayor, City Council and Administration need to commit to the process
and its potential outcome.
Reinventing/re-engineering can't be accomplished in one or two years. It is
a long-term commitment and a basic rethinking of the fundamental mission
on how government provides service.
It is important to solicit community understanding and involvement as the
process proceeds into reducing or eliminated programs and reviewing fees
for services.
A commitment must be made to enhance volunteer programs and
public/private partnerships in order to maintain existing levels of priority
services.
There is a need to renew commitments for education and training by
examining the type of training necessary to lead and change the
organization.
Sufficient time must be spent on communicating openly through focus
groups, staff meetings, public forums, citizen newsletters and other strategic
sources of information that can be identified.
"There is nothing more difficult to take in hand,
more perilous to conduct...than to take the lead in
the introduction of a new order of things."
-Niccolo Machiavelli,"The Prince"
62
IDEAS THAT SAVE COSTS AND INCREASE REVENUE/SERVICE QUALITY
Mayor/Council and Administrative Staff are agents of change. Change requires a driving
force and the most powerful change agent is financial stress. The City of Beaumont must
make major changes in the operation of government if financial stability and quality services
are to be continued.
The implementation of a portfolio management tracking system to monitor
taxes, water, sewer and other City assessments will result in increased
revenues received in a more timely manner.
The City should sell assets - land, buildings, equipment to the extent
possible in order to turn underutilized physical capital into financial capital and
produce tax benefits.
Privatization of public services should be considered through a competitive
process with City employees when contracting provides a clear advantage
on cost savings and service quality. While the private sector can be an
effective agent for delivering public services,the responsibility for providing
services - determining the scope, level and conditions under which they are
delivered remains with City officials committed to the public interest.
Management improvement efforts many times focus on how to do unimportant
things cheaper. Instead, as City leaders we should ask.- "should we be doing
this at all?" City government should limit activities to core functions and
missions. Does the City activity/service provide more value for the customer
than it consumes in resources? Is the service essential? Is the private sector
already providing the service or if not, is it capable of doing so better than
government? Does the program displace voluntary community or
neighborhood networks? This approach must-Be applied to all service areas
with the intent to eliminate activities that don't meet the criteria.
Solicit ideas from the Municipal Court Judges on saving operating costs and
gener9ting additional revenue from the judicial system.
Local telephone and long distance services are being analyzed for potential
cost reductions. The City's current cost for long distance service which is
through MCI Worldcom averages $3,500 per month. Phone lines and local
service cost through Southwestern Bell average $23,000 per month. Phone
lines include voice and data transmission lines. The City leases approximately
277 voice transmission lines, 60 trunk lines, 25 data transmission lines, and 6
local DID trunks with 600 numbers from Southwestern Bell.
63
Recent federal legislation provided for the deregulation of local phone service
allowing phone users to choose their provider of local phone service. Staff is
currently researching the possibility of soliciting bids for providing local phone
service to reduce the overall cost. It is estimated that there may a potential
savings of 15% or approximately $40,000 a year if these services are
competitively bid.
In addition, participation in the State of Texas TEXAN 2000 cooperative
telecommunications program provides discounts on all services currently
provided by Southwestern Bell including long distance services. Staff is
currently researching the contract with the State to determine if the discounts
afforded the State are more substantial than contracting a portion of phone
service to another supplier.
Currently, the long distance cost per minute is $.14, but this cost could be
reduced to $.09 per minute if the City participates in the TEXAN 2000
program for long distance services reducing the total cost for long distance by
approximately 60%.
The City Council and City Manager meet quarterly with the Beaumont
Independent School District to discuss common issues and priorities. The
Council and Manager also meet quarterly with the Chamber of Commerce and
all Beaumont governmental entities for the same reason. Programs, services
and taxpayer facilities should be identified for better coordination and use. For
example, the City and BISD could utilize joint facilities for recreational
programs.
Consolidate grass cutting across Departments by assigning responsibility to the
Parks and Recreation Director. Grass cutting responsibility from Streets and
Drainage and Clean Community will be transferred to Parks with employees
and equipment centralized in the new Parks maintenance facility. This will
improve coordination of personnel and equipment resulting in increased
productivity.
Institute energy management program through public/private partnership to
retrofit City facilities with capital costs paid from energy savings overtime.
Develop Government business opportunities to market products or services to
other public agencies, e.g. the "webber"back-flow device for toilets.
Solicit private sponsorship of public facilities such as the Civic Center.
Proposals would be solicited from the business community for naming rights
for an annual fee for a 20 year term.
64
Use of Fund Balance to address revenue shortfalls or unexpected expenses.
This is a short term solution that has negative consequences long term if the
fund balance is depleted.
To enhance employee morale,productivity and cost savings,we will establish
an employee incentive program that provides monetary incentives to
employees exceeding departmental goals and budget targets. The program is
based on the following:
* Incentive is based on performance measures through budgetary savings
Incentive is not related to performance evaluation system
It is department and program based not individual based
Each department has a mission statement and performance measures;
incentive comes ifthe department meets performance measures;partial
accomplishments are recognized as well
Capital outlays/improvements, insurance and professional fees are not
included
50% of savings is returned to general fund, 50% is shared evenly
among employees generating the savings.
Reduction in Fleet
Outsourcing City Internal Services
Elimination/Transfer of Service Responsibility
Adjust Service Levels
Discontinue Subsidy of Programs/Services
Subsidize Transfer of Service
Encourage Volunteer/NonProfit Participation in Service Delivery
Private Infrastructure Development
Establish Trust Opportunities for Private Donations
Improve Collection Process of City Fees
65
REVISED 2001 BUDGET PRESENTATION
The FY2001 budget process will focus on creating a program/performance based budget with
extensive citizen involvement. The following information provides more details on this
approach.
Program Budget'ng
What is a program budget?
• A budget format in which all proposed expenditures are grouped according to
"objects" or cost centers. In most local government budgets, the "programs" are
department-specific. For example, the Human Resources Department may include
these program categories for budgeting purposes: Personnel, Benefits and Worker's
Compensation.
• The use of program budgeting focuses on the outputs and outcomes of programs.
Once a program format is established performance measurement may be more readily
analyzed and reported.
Performance Measurement
Why would government use performance measurement?
• To provide to its citizens, through the budget document, a means to measure its
performance.
What are some of the measures or indicators used?
• Input
• Demand
• Output
• Efficiency
• Outcome
What are input measures?
• The amount of resources used for a specific program (i.e., number of dollars spent,
employee time).
66
What are demand measures?
• The amount of need for a particular service-a measure of the extent of a problem or
scope of work needed. (i.e.,number of miles of streets to be cleaned,number/values
of residents requiring fire protection).
What are output measures?
• The amount of a completed activity or effort that has been accomplished. (i.e.,
number of investigations completed,number of library books borrowed,miles of road
repaired).
What are efficiency measures?
• The cost to produce a unit of output(i.e., average cost per inspection performed cost
per ton of solid waste collected).
What are outcome measures?
• The quality of the program or process outputs. Effectiveness as a result of
responsiveness, timeliness, compliance, accuracy and customer satisfaction (i.e.,
average response time to fire calls,percentage ofbusinesses inspected,average citizen
satisfaction with services delivered).
Engaging the Citizens in the Budget Process
Why should a city market their budget?
• The annual budget process is an opportunity to dialogue with citizens regarding
community goals and priorities and to create public sdpport.
How would the City involve the citizenry in the budget process?
• Neighborhood meetings
• Citizen survey(PAFR distribution)
• Website
• Newsletter (water bill distribution)
• Channel 4 (local government access)
Relying on the public hearing process is in most cases "too little, too late" to involve a
significant number of participants. It is desirable to inform and educate the public so that
they might understand the "budget process" but this is often "one-way," not two-way
communication.
67
Dr. Frank Benest of The Innovation Groups provided the following illustration:
Continuum of Public Discourse
Informing Citizens Eng_azing Citizens
One-Way Two-Way
Telling/Selling Listening/Responding/Listening
Education Learning
Presenting Information Eliciting values, hopes,
aspirations, concerns
Discerning "Public Opinion" Promoting "Public Judgement"
Analysis of Fund Balance
Traditionally,two methods have been used by finance officers in determining the appropriate
size of unreserved fund balance:
• allocating financial resources equal to a percentage of annual operating expenditures
• allocating financial resources equal to a certain number of months' operating
expenditures
The City of Beaumont uses a range of 8-10% of expenditures in the General Fund. This
relates closely to one month's operating expenditures(8.3%)which is widely used standard.
What factors influence the establishment of a certain level of unreserved fund balance?
Revenue structure - Is it volatile? What is the City's dependence of sales tax? Are City
revenues sensitive to the effects of the business cycle?
• Expenditures - Can purchases be deferred?
• Cash flow - Can sufficient cash balances be managed with an uneven cash flow?
The projected level of unreserved fund balance for the General Fund as of April 30, 2000
exceeds the 8-10% called for in the financial policy. (11 %).
68
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City of Beaumont
March 31, 2000
To the Honorable Mayor and Councilmembers
INTRODUCTION
The Long-Range Financial Forecast, the Capital Improvement Program and the Annual
Budget, combine to form the basis of the annual budget process for the City of
Beaumont. The first report, the Long-Range Financial Forecast, is presented to Mayor
and Council prior to April 1 each fiscal year. The forecast is prepared to assess the
City's current financial condition and project that position ten years into the future
utilizing current policies, trends and assumptions, while maintaining the existing levels
of City services. The Capital Improvement Program and Annual Budget provide
increasing levels of detail and analysis.
The impact of the Long Range Financial Forecast will be reviewed during the 2000
Budget Summit on May 12, 2000 in preparation of the fiscal year 2001 Annual Budget.
The City's fiscal year encompasses the period from October 1, 2000 to September 30,
2001.
GENERAL GOVERNMENTAL FUNDS
General governmental funds include the General Fund and Debt Service Fund. The
General Fund accounts for the fundamental operating costs of most city departments.
The Debt Service Fund is used to record the resources received to retire the
outstanding debt obligations which are secured by taxes levied by the City.
i
i
i
69 j
General Fund Revenues
The majority of revenues recorded in the General Fund are derived from Sales Tax,
Property Tax, Industrial Payments and Gross Receipts Tax. The following illustrates the
proportion of each source for FY 2000.
General Fund Revenues
by source
40.3% Sales and use tax
20.0% Property taxes
9.1%Other
5.6%Water Utility in lieu
16.7% Industrial payments 8.3% Gross receipts tax
$65,481,000
The forecast of revenues is based on several assumptions.
Sales and use tax is projected to grow 5.2% in FY 2000 to $26AM. This represents an
increase of$1.3M over FY 1999. The remaining years of the long range forecast
project annual increases of three to four percent providing approximately $1 M in
additional revenue annually.
Property taxes represent $13.1M of total General Fund resources, a tax rate of$0.35
per $100 of assessed value. The current revenue estimate assumes the potential for
growth in assessed value which is included at a declining rate of 5% - 3%. Positive
economic conditions, combined with a recovery in mineral values lost in FY 2000,
support the 5% increase in assessed value anticipated in FY 2001. Funding
requirements for existing debt service dictate an increase of$0.02 to the Debt Service
portion of the tax rate. Rather than increase the total tax rate, the administration
proposes to shift this amount from the dedicated General Fund amount. The anticipated
increase in assessed value combined with the proposed decrease in the tax rate will
produce revenues of$13M in FY 2001. This is a 1% decrease from FY 2000 estimates.
The forecasted increase in assessed value for the remaining years will drive the
increased property tax revenues.
70
Industrial payments account for approximately $11M. A growth rate of 2.5% is
expected for FY 2001. Existing contracts will expire in FY 2001 and are subject to
renegotiation. The most sizable contract is with ExxonMobil followed by duPont and
Goodyear. These industries combine to provide over 83% of the existing industrial
payment revenues. Projections beyond FY 2001 present a growth rate of 3%, which like
the property tax, is based on positive economic conditions and growth in assessed
values.
Gross receipts taxes (franchise fees), collected from utility companies operating
within the City, are estimated at$5.4M for FY 2000, an increase of 1.4%. Based on
current known conditions and trends, these revenues are projected to increase 1.5%
annually for the foreseeable future. Entergy is the lead contributor of gross receipts tax
and is the most sensitive to fluctuation. Utility rate reductions and lower usage directly
impact the receipt of these taxes by effectively reducing the "gross receipts" on which
the tax is based. Included in this category are receipts from Southwestern Bell
Telephone Company. On September 1, 1999, House Bill 1777 changed the method
used to calculate the franchise fee for certified telecommunications companies. Under
the new method the amount will be based on a per-access line rate by category. No
significant change in the amount collected from Southwestern Bell is anticipated based
on the new method of calculation.
Total General Fund Revenues
100
80
60 --
0
40
20 -
0
2000 2001 2002 2003 2004 2005 2006 -2007 2008 2009
Fiscal year
m Sales and use tax ®Property taxes ®Industrial payments
C]Gross receipts tax 0 Water Utility in lieu ®Other
Overall, an average 2.7% growth rate is expected in General Fund revenues for the 10
years in this forecast which will produce additional revenues of approximately $1.5M -
$2M annually.
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General Fund Expenditures
The basic costs of operating the City are charged to the General Fund. These
disbursements provide for Police; Fire; Public Works; Health, Cultural and Recreation;
Central Services; and General Government.
Current assumptions maintain the current level of services with the existing number of
authorized positions, contractual salary increases for fire personnel and an annual
salary adjustment of 3% for civilians. Police contracts are under negotiation for the
2001 fiscal year. This increase is offset with savings anticipated from the
administration's reorganization efforts.
Transfers, reflecting those charges related to dependent healthcare, the cost of liability
claims and lawsuits, facility renovation and the transit subsidy, are anticipated to
increase to $120,000 for FY 2001. This increase restores the transit subsidy to
$600,000 annually. It was reduced in FY 2000 to utilize available fund balance in the
Transit Fund. Future increases in this category are related specifically to dependent
healthcare. Total expenditures are expected to grow an average of 2.8% annually
throughout the projection period.
i
}
General Fund Expenditures
by category
FY 1999 FY 2000 FY 2001
Actual Estimated Projected
Wages $38,156,378 40,426,700 40,890,000
Benefits 7,824,213 7,996,900 8,040,000
Other Operating 11.476,423 12,768,400 12,772,000
Total Operating 57,457,014 61,192,000 61.702,000
Dependent Healthcare 2,996,400 3,152,300 3,168,300
Workers Compensation 700,000 745,300 749,000
Capital Reserve. 500,000 500,000 500,000
General Liability 400,000 400,000 400,000
Transit Subsidy 600.000 500,000 600,000
Total Transfers 5,196,400 5,297,600 5,417,300
Total General Fund $62,653,414 66,489,600 67,119,300
For the fiscal year ending September 30, 2000, the City will maintain a fund balance in
the General Fund of 10% of expenditures. It is projected, based on current
assumptions, that by FY 2002, the level will fall slightly below the goal of 10% and end
the year with a fund balance equal to 9.7% of expenditures.
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i
Storm Water Utility
Currently under consideration is the creation of a Storm Water Utility to capture the
rising costs associated with unfunded mandates of the Environmental Protection
Agency (EPA) related to storm water runoff. If implemented, approximately $4M in
General Fund costs related to storm water would be recovered by a fee charged by the
Storm Water Utility. This will effectively make available $4M in General Fund resources
that could be directed to other uses such as a reduction in the property tax, funding
additional firefighters and performing needed neighborhood revitalization.
Debt Service Fund Expenditures
The major-source of revenue recorded in the Debt Service Fund is property taxes.
Currently, a rate of$0.285 is applied to each $100 in assessed valuation. As noted in
the General Fund discussion, the rate of growth for assessed valuation is estimated to
range from 3% to 5% during the term of this forecast.
It is anticipated that $0.02 of the General Fund portion of the tax rate will be shifted to
Debt Service for Fiscal Year 2001. This will provide the necessary resources to retire
current debt and sustain an adequate fund balance for that year.
In order to provide funding for the ongoing Capital Improvement Program (CIP), debt
issues of$20M are anticipated in January of 2001, 2003, 2005 and 2007. This would
provide the resources to complete projects currently listed in the FY 2000 CIP,
including Other Projects for Consideration. A dynamic document, the projects in the CIP
are reviewed and adjusted annually, as needed, by Mayor and Council.
Debt Service Requirements
Existing and Potential
20
15
H
C
O_
TAw
10
5 '
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Fscal Year
®Existing Debt Service ®Potential$20M-Jan 2001 W FtenU$20M-Jan 2003
O Fuential$20M-Jan 2005 ®Fbtent'ral$20M-Jan 2007
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