1

City Council Retreat

Vision and Spending Priorities

2

Agenda

• Survey Results• Branding/HOT/Downtown• Taxation• Budget Overview & Worksheets• Council Expectations

3

Organization Overview

4

Citizen Survey Results

• Handouts

5

Maslow’s Government Hierarchy of Needs

City Service Providers

Safety, Water, Streets

Code Enf., Image

Growth, Housing

Retail andRecreation

Quality of Life

6

0%10%20%30%40%50%60%70%80%90%

100%

Safety, Water, Streets Code Enf. ImageGrowth, Housing Retail and Recreation

Maslow’s Government Hierarchy of Needs (vs. Survey)

Safety, Water, Streets

Code Enf., Image

Growth, Housing

Retail andRecreation

Quality of Life

36%

44%

25%

75%

City Service Providers

7

City Branding

• City branding refers to all the activities that are undergone with the purpose of turning a City from a location into a destination. City branding creates a single brand for the city and extends it to all its offerings and interactions. From a customer point of view this creates a unique picture of the city at every level of interactions. A city brand is its promise of value, a promise that needs to be kept. – http://en.wikipedia.org/wiki/

Place_branding#City_Branding

8

Competitive Advantage

Kyle’s Competitive AdvantageHigh

Low

Not at All Very

VALUE

SCARCITY (uniqueness)

Do We Want One?How

Badly?

9

Mission, Vision, Values

• Mission Statement: Most innovative, transformative, creative local government willing to invent, explore, and constantly push for greater heights

• Vision: We are the leaders among government. We have a culture of innovation, progress, ... We will not quit. Our citizens demand our best, and push us to greater and greater successes. We are Kyle.

• Values: Innovative, Fun, Enthusiastic, Energetic

10

Hotel Occupancy Tax

• City is financial steward (fiduciary) over these funds

• Must benefit hotel & lodging industry• Typically a draw from outside 30 miles• Events• Gateway & Wayfinding Signage• Destination Attraction (GSMP)• Chamber• Downtown

Old Town Kyle

Map of Downtown

Design

• Gateway Signage• Wayfinding Signage• Banners• Lighting• Undergrounding Utilities• Murals• Parking• Water Fountain• Revitalization Grant• Restore Old Water Tower

Entertainment

• Entertainment District – Specific Uses• After-hours Shopping• Noise Ordinance• Events• Art Walks/District

Business Assistance

• Classes/Trainings – SBDC/Chamber/GSMP• Joint Advertising• Guest Speakers• Business Plans• Revitalization Grant

Promotion

• Brochures• Primary Lure• Destination Kyle (i.e. Kyle Style)• Digital Sign

Funding

• Utilize Existing Personnel• HOT Funding for Events/Promotion

18

Platinum Award

• Texas Comptroller Leadership Circle Platinum Member for Transparency!

19

Municipal Budgeting

• General Fund• Enterprise Funds• Special Revenue Funds• Debt Service Funds• Capital Improvement Fund• Internal Service Funds (To be established in 2016)

20

Budget Process• Budget Calendar

– March 23 Staff Retreat

– March 28 Council Retreat

– June 20 Deadline for department budget numbers

– June 30-July 3 Department meetings

– July 27 Line item Budget Sent to Council for Review

– August 1 Council Budget Retreat

– August 19 1st Public Hearing, Budget & Tax Rate

– August 26 2nd Public Hearing on Tax Rate

– September 1 Adoption: Budget & Tax Rates (1st Reading)

– September 8 Adoption: Budget & Tax Rates (2nd Reading)

21

Property Taxation• Hays County Appraisal Mid-Year Estimates for Tax

Year 2015 – Available in Late April• Anticipating Similar Growth Rate in Tax Base as

2014– 9.2% for Tax Year 2014 Compared to 2013– $140 Million Increase for FY 2014-2015– $151 Million Increase for FY 2015-2016

• Currently $0.5383 (Reduced by $0.01 in FY 2015)• Current Effective Tax Rate $0.5230 (Two Public

Hearings)• Current Rollback Tax Rate $0.5667 (Anything

Higher Would Require a Petition and Special Election to Bring the Rate Back to the Rollback)

22

1987-88

1988-89

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

0.27

0.32

0.37

0.42

0.47

0.52

0.57

0.62

0.67

0.72

0.4689

0.5710

0.5526

0.5872

0.6926

0.6324

0.6317

0.55970.5506

0.53360.5202

0.4918

0.4546

0.4141

0.3883

0.3599

0.3190

0.2871

0.27770.2724

0.2707

0.3731

0.4240

0.4154

0.4845

0.5244

0.5483

0.5383

Kyle Property Tax Rate

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1987-88

1988-89

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

0.27

0.32

0.37

0.42

0.47

0.52

0.57

0.62

0.67

0.72

0.4689

0.5710

0.5526

0.5872

0.6926

0.6324

0.6317

0.55970.5506

0.53360.5202

0.4918

0.4546

0.4141

0.3883

0.3599

0.3190

0.2871

0.27770.2724

0.2707

0.3731

0.4240

0.4154

0.4845

0.5244

0.5483

0.5383

Kyle Property Tax RateTipping Point

Spending Reserves for Projects

$5.2 Million Since 1993

24

1987-88

1988-89

1989-90

1990-91

1991-92

1992-93

1993-94

1994-95

1995-96

1996-97

1997-98

1998-99

1999-00

2000-01

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-150.27

0.37

0.47

0.57

0.67

0.77

0.87

0.97

1.07

0.4689

0.57100.5526

0.5872

0.6926

0.63240.6317

0.55970.55060.53360.5202

0.4918

0.4546

0.41410.3883

0.3599

0.31900.2871

0.2777 0.27240.2707

0.3731

0.4240

0.4154

0.4845 0.5244

0.5483

0.5383

0.490.51

0.530.56

0.580.60 0.62

0.630.65

0.670.69 0.70

0.710.74

0.76 0.770.79

0.810.84

0.860.89

0.92 0.920.93

0.960.98

1.001.01

Kyle Property Tax Rate with Inflation

25

Lake Jackson

Southlake

Weatherford

Rosenberg

Schertz

Seguin

Kyle

Nacogdoches

Farmers Branch

Little Elm

Harker Heights

Waxahachie

Deer Park

Cleburne

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90

0.388

0.462

0.487

0.490

0.497

0.517

0.538

0.564

0.602

0.665

0.677

0.680

0.720

0.804

Property Tax Rates in Texas Cities with Populations of 26,000 to 35,999

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Lake Jackson

Southlake

Weatherford

Rosenberg

Schertz

Seguin

Kyle

Nacogdoches

Farmers Branch

Little Elm

Harker Heights

Waxahachie

Deer Park

Cleburne

$- $200 $400 $600 $800 $1,000 $1,200

$523

$624

$657

$662

$671

$698

$740

$761

$813

$898

$914

$918

$972

$1,085

Residential Municipal Cost of Service(Annual Taxes)

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Increasing the Tax RateTax Rate

Generation (M&O + I&S)

Monthly Tax Increase (Average $135,000

Home) After Senior

Exemption0.5383 Today's Rate 60.56 47.10

0.5483 $ 158,000 61.68 47.98

0.5583 $ 316,000 62.81 48.85

0.5683 $ 474,000 63.93 49.73

0.5783 $ 632,000 65.06 50.60

0.5883 $ 790,000 66.18 51.48

0.6383 $ 1,580,000 71.81 55.85

0.6483 $ 1,738,000 72.93 56.73

0.6583 $ 1,896,000 74.06 57.60

0.6683 $ 2,054,000 75.18 58.48

0.6783 $ 2,212,000 76.31 59.35

Monthly Increase: 15.75 12.25

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Price Comparison(cost per month)

City Services:24-hr Police Protection

Street MaintenanceLibrary Services

Parks, trails, ball fieldsAnimal Control

Building InspectionsCode Enforcement

Professional Management

Digital Cable:

$61

$130

28

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Tax Rate and GrowthCity   2005 Population   2005 Tax Rate   2014 Population   2014 Tax Rate   Pop +-   Tax Rate +-

Kyle 12,681 0.287 31,760 0.548 150%   91%

Little Elm 18,157 0.399 31,000 0.665 71% 67%

Weatherford 23,107 0.340 27,021 0.487 17% 43%

Schertz 26,437 0.376 35,929 0.497 36% 32%

Farmers Branch 26,051 0.495 31,664 0.602 22% 22%

Seguin 24,806 0.433 26,842 0.517 8% 20%

Waxahachie 25,106 0.615 32,070 0.680 28% 11%

Cleburne 28,693 0.748 30,400 0.804 6% 7%

Lake Jackson 28,033 0.380 27,451 0.388 -2% 2%

Nacogdoches 31,034 0.560 34,047 0.564 10% 1%

Southlake 24,786 0.462 28,234 0.462 14% 0%

Deer Park 29,293 0.720 33,237 0.720 13% 0%

Harker Heights 21,382 0.690 28,169 0.677 32% -2%

Rosenberg 29,931 0.550 33,188 0.490 11%   -11%

Correlation Factor Between Growth and Taxation: 0.86

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Preliminary Estimates2016 Revenue Increase

Aggressive Moderate Standard

General Fund $1,600,000 $ 860,000 $ 700,000

W&WW Utility $1,800,000 $1,260,000 $ 700,000

Estimated Increase: $3,400,000 $2,120,000 $1,400,000

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2016 New Budget Needs

General Fund Utility Fund Other Total

New Positions $ 835,084 $ 40,000 $ 64,200 $ 939,284

Non CIP Capital $ 588,524 $ 4,000 $ 120,000 $ 712,524

New CIPs $ 1,272,346 $ 5,157,473 $ 18,331,034 $ 24,760,853

Budget Needs: $ 2,695,954 $ 5,201,473 $ 18,515,234 $ 26,412,661

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CIP, Personnel, Non-CIP

• Rate Your Priorities As We Go…• Submit Sheets At End

Council Expectations• What is each member’s expectation on frequency

and type of communication? Friday report vs. ongoing emails?

• Expectation of Privacy?• Is it okay to give some elected officials more face

time and attention than others?• Are employees allowed to speak directly with

councilmembers about work with or without the manager’s knowledge? Do councilmembers go directly to staff when they have a question or want something done?

• What about communication to/from the public?

33

Smartsheet

• 2015 Park Improvement Projects (Online)• 5 Year Capital Improvement Plan (Online)• Certificates of Occupancy (Online)• Road Bond Projects (Online)• Developments (Confidential)• Strategic Plan (Online)

34

35

Adjourn