01 09 05 final

Welcome!: 

Welcome! The purpose of tonight’s Open House is to seek your advice on the level of service the City provides to its customers to help us in long-range planning To get there, we’ll show you the features and costs of providing different levels of service Finally, you’ll be asked to fill out an 'Advice Scorecard' to record your preferences

Slide2: 

We’ve got a problem Current trend The Round Rock City Council is confronted with a problem. Spending growth is outpacing revenue growth (see chart). If left unchecked, the potential deficit will grow over time If not dealt with now, the City Council would be forced to make budget cuts in a knee-jerk, crisis-management fashion. The City will manage modest deficits by implementing Cost Controls and improving efficiency both organization-wide and in our various Core Services. The problem also gives us an opportunity. We’ve never asked citizens to look at the big picture of all the Core Services we provide and give us input on what Levels of Service we should provide among those Core Services. Service Level discussions in the past have always focused on single issues.

Slide3: 

Steps Timeline Status Forecast financial capacity Aug.-Sept. Complete Identify things that drive costs up Fall Complete Identify opportunities to control costs Fall Complete Listen to public advice Jan.-Feb. Ongoing Public input presented to City Council Feb. 22 Council decides policy direction Spring/Summer How are we addressing the problem? There are various ways to tackle the problem. We can raise revenue, cut services or do a combination of both. The City Council will make the final decisions on how to deal with the problem and would like informed public input when making those decisions. To help inform the public, we have analyzed population growth trends and the associated financial capacity we can expect over time. We have also taken a top to bottom look at the services we provide and how we pay for them. We have identified cost drivers – things that drive costs up – as well as cost controllers – things that can save money. Now, we’re asking for citizen’s advice on their preferences on the Levels of Service we provide and how they would like to pay for them. Here is the six-step process we are using address the problem:

Core Services: 

Core Services We’re focusing tonight’s exercise on 7 Core Services that compete for General Fund dollars Provide Library Services Maintain Order, Enforce Laws Provide Fire Response Provide Emergency Medical Response Provide Open Space, Parks Facilities Provide Recreational Facilities, Activities Provide Urban Infrastructure

Slide5: 

Primary Revenue Sources (in millions) Sales Tax $44.2 Property Tax 21.5 Water/Wastewater Sales 27.0 Franchise Fees 5.0 Other 9.9 Total FY 2006 Revenue $107.6 City Expenditures (in millions) Water/Wastewater Services $ 27.0 Debt Payment 10.0 Dell Incentive Payment 10.2 Legislative/Regulatory Services 16.8 Library Service 2.2 Maintain Order, Enforce Laws 16.5 Fire Response 9.9 Emergency Medical Response* Open Space, Parks Facilities 4.0 Recreational Facilities, Activities 4.2 Urban Infrastructure 6.8 Total FY 2006 Expenditures $107.6 *No cost figures shown for EMS because City shares EMS responsibility with Williamson County. City EMS costs are included in Fire Response figure. Where money comes from… City of Round Rock Operating Funds How funds are spent…

Level of Service: 

Level of Service We’re using a car analogy to explain different levels of service. Cars with more features and a more complex design tend to cost more. Think of the upper end as a Lexus, the midrange as a Camry and the lower end as a Corolla. This does not mean the Corolla is a poor choice. It simply has fewer features and thus costs less. What’s appropriate – Lexus, Camry or Corolla – is a decision for the purchaser based on their needs, preferences and budget. Regardless of design and features, the City strives to execute its service delivery as efficiently as possible. We measure execution through benchmarking, customer surveys and industry best practices. (You’ll also see information about Cost Drivers and Cost Controllers at each Core Service Station.) At each Core Service station, an X is placed on each axis to show where the Core Service ranks.

Provide Library Services: 

Provide Library Services Current Level of Service Design and Features: Our level of service is above a Camry. We are a Lexus in staffing and service, Corolla in size of collection (books and other materials). We are open 71 hours a week, 7 days a week, with staff hours at .67/capita Execution: Our quality of execution is excellent in customer service and good-excellent in quality of collection based on in-house surveys. x x

Slide8: 

Cost drivers Population growth, especially families Economic swings — libraries busier during downturns Costs for materials increase, pegged at Consumer Price Index Salaries based on market Branch at Camry level: $5.7 million in capital costs not reflected Key issues Cannot house growing collection. Max out in 3 years. Storytimes and programs are full. No growth over past 3 years. Parking is becoming a barrier. On peak days, people park 2-3 blocks away, garage full. Cost controllers Personal access to computers at work/home Growth in typical non-library using populations (single adults, baby-boom senior citizens) Library too small to serve growing population FY 2005-06 Budget By Spending Category

Slide9: 

Per capita spending College Station* $11 Tyler $14 Pflugerville $18 Longview $19 Frisco $20 San Marcos $23 Cedar Park $24 McKinney $25 Austin $27 Georgetown $27 Bryan* $31 Denton $43 Average $24 Round Rock $25 *Bryan administers the College Station program To follow state standards to the letter, there would need to be an increase in funding for materials to meet the Camry level of 3 items per capita, hence an increase from where we are today. If we met the Camry level in collection size, we’d have to have a branch — we don’t have room to store that much material. If we go to a Corolla level, over the next 5 years all remaining meeting rooms will need to be programmed for library only use. After 2010, the library will be static, with no room for changes or growth.

Maintain Order, Enforce Laws: 

Maintain Order, Enforce Laws Current Level of Service Design and Features: Our service design and features are somewhat above a Camry because we operate proactive programs that stack up well against Texas cities of similar size Execution: Execution is near excellent in that we (a) are the eighth-safest U.S. city (b) follow industry best practices (c) have high approval ratings (d) well-established partnerships x x Level of Service

Slide11: 

Cost Drivers Service demand Growth in Calls for Service Citizen expectations Personnel costs (83% of the Dept. budget) Capital costs (police cars, radio, other equipment) Key Issues Business Model: Lead partnerships that address issues before they become serious crime problems Maintain a responsive service philosophy and a low crime rate in a high growth environment More modest policing models require us to abandon our current, proactive philosophy Cost Controllers 'Civilianizing' some police functions Strategic partnerships that leverage resources Operating proactive programs FY 2005-06 Budget By Spending Category

Slide12: 

Per Capita Spending Cedar Park $128 Frisco^ $139 College Station*^ $140 McKinney^ $145 Georgetown $162 Longview^ $175 Bryan^ $175 Tyler*^ $183 San Marcos $187 Pflugerville $190 Denton^ $214 Austin* $258 Average $176 Round Rock* $186 NOTES: Data are for the 2005-06 Fiscal Year * = Denotes accredited agency ^ = Participated in 2004 RRPD Benchmarking Survey Mission Statement The Round Rock Police Department, in alliance with our community, provides public safety and promotes a high quality of life. *Average for cities appearing to the left in the per capita spending table; the purple bar is the average of those cities with 50-100k residents *Average for 24 cities surveyed in a 2004 RRPD Benchmarking Survey. Cities listed to the left that participated in the survey are marked with a '^'. 10-Year Forecast of Police 'Events' 1,000 Events Forecast shows 42 % rise over 10-year period *2005-06 average for cities appearing to the left in the per capita spending table Police officers per 1,000 Residents

Provide Fire Response: 

Provide Fire Response Current Level of Service Design and Features: Below Camry because we cannot meet an 8-minute response time (1 min. call taking, 1 min. to leave station, 6 min. drive time) on 80% or more of all fire calls; paid staff; 8 crews (7 crews at 3 per crew; 2 two-member rescue crews) Execution: 82.6% of citizens rate the Fire Department’s service from good to excellent x x

Slide14: 

Cost drivers Personnel costs exceed 90% of annual budget Capital Costs are not included in service level costs shown on first board. Estimated per station cost is $1.75M, engine/truck cost is $600-850K Key issues Local Fire Training Facility: Because there are few structure fires, it is critical that we provide quality structure fire suppression training to firefighters before an actual fire for their safety and for the protection of the public [life and property]. Establish Service Level Objectives for Dispatch, Turn Out, and Response Times and for Crew Staffing Levels. Enact Automatic Aid Agreements with neighboring Fire Service Organizations in order to have additional fire suppression forces automatically dispatched to critical life and property locations. Cost controllers Redistribution of Williamson County EMS resources Call Screening to reduce unnecessary responses Reimbursement or fees for responses FY 2005-06 Budget By Spending Category

Slide15: 

Mission: Round Rock Fire Rescue is committed to providing the highest level of fire suppression, emergency medical, fire prevention, and disaster services. Per capita spending Pflugerville* $ 63 San Marcos $ 76 College Station $ 78 Cedar Park $ 99 Tyler $ 99 Georgetown $104 Bryan $112 McKinney $118 Austin $129 Frisco $132 Longview $160 Denton $165 Average $115 Round Rock $112 *Pflugerville is a Combination (Professional andamp; Volunteers) Emergency Services District which is a separate taxing entity limited by state statue on property tax rates. Breakdown of calls received Call type Number Structure Fire 53 Fire - Other 205 Hazardous conditions 296 Service call 892 Medical 3,948 TOTAL 5,394

Emergency Medical Response: 

Emergency Medical Response City Fire Department and Williamson County EMS share quarters in four of City’s six fire stations City Fire provides First Responder services (Basic Life Support) while Williamson County EMS provides Advanced Life Support (Paramedic) and Ambulance services Williamson County EMS does not allow qualified City Firefighters to provide Advanced Life Support (Paramedic) services Response Time Goal: The American Heart Association recommends a response time of 6 minutes for 90% of EMS calls. Because City and County share stations, we cannot meet this 6-minute goal. For example, there are 10-minute plus EMS response times in far northwest and far east areas of Round Rock Current Level of Service

Goal for EMS Services : 

Goal for EMS Services Establish formal written agreement with Williamson County to relocate Williamson County EMS from City Fire Stations to EMS stations. Strategically located EMS stations would enable EMS responders, City Fire or Williamson County EMS, to respond to critical EMS calls within 6 minutes 90% or more of the time Establish formal written agreement with Williamson County so qualified City Firefighters can provide Advanced Life Support (Paramedic) services Establish formal written agreement with Williamson County for the provision of Ambulance services

Provide Open Space, Parks Facilities: 

Provide Open Space, Parks Facilities Current level of Service: Level of Service: Slightly above Camry. We maintain 16 acres of parkland per 1,000 population (1,450 acres total), which is almost 25% more per capita than benchmark cities. No dedicated funding source for capital projects like new pools, fields. Execution: On a per acre basis, our cost to maintain parkland is 30 percent lower than benchmark cities. We provide award-winning services that receive high customer satisfaction ratings in the face of heavy user demand. x x

Slide19: 

Cost drivers Demand to provide diverse facilities for growing population Maintain aging facilities Growing demand for practice space Sports Capital of Texas initiative increases costs for development, maintenance Key issues Develop partnerships and inter-local agreements that allow better utilization of existing resources and facilities Maintenance and development standards Level of service Determine level of cost recovery from sports organizations Sports Capital of Texas expectations and return on investment Establish dedicated fund for parks improvement Cost controllers Consumer education of development and maintenance standards Share maintenance responsibilities with other organizations Efficient facility design Limit use of game facilities while providing additional practice space Increase existing fees, establish new fees FY 2005-06 Budget By Spending Category

Slide20: 

Park acreage per capita is major factor that determines expenditures. From a budget perspective, no two cities include the same items. General Fund per capita spending Tyler $18 Austin $19 Cedar Park $28 McKinney $29 Pflugerville $30 Bryan $34 Frisco $37 Georgetown $39 San Marcos $46 Longview $47 Denton $52 College Station $52 Average $37 Round Rock $46 Many of our sports tourism competitors have larger capital project budgets available Round Rock has 1,450 acres of parkland, of which 59 percent is developed -- That 59 percent is heavily utilized By providing an adequate number of practice facilities, game facilities can be maintained at tournament quality

Provide Recreational Activities: 

Provide Recreational Activities x x Current Level of Service Design and Features: Camry level. We offer enhanced recreational programming for all age groups, and host events like Christmas Family Night. Clay Madsen Recreation Center is open 104 hours per week, the Senior Center is open 45 hours per week and youth basketball has 700 participants Execution: In spite of limited recreation facilities, execution is high based on customer feedback, such as surveys and participation levels.

Slide22: 

Cost drivers Demand to provide services for a wide range of activities Cost to maintain quality recreational facilities, programs, equipment and staff Growing demand for practice space Key issues Determine program fees that balance citizen cost concerns with the city’s ability to provide recreational services Develop partnerships and inter-local agreements that allow better utilization of existing resources and facilities Population growth = higher demand. Sports Capital of Texas tourism effort increases expectations for facilities Cost controllers Increase fees Limit program offerings/ participants Efficient facility design Create enterprise fund FY 2005-06 Budget By Spending Category

Slide23: 

General Fund per Capita Spending Tyler* $ 8 San Marcos* $12 Frisco $15 Longview* $16 Cedar Park* $16 Austin* $19 Denton* $23 McKinney $29 Pflugerville* $30 Bryan $34 College Station* $40 Georgetown* $40 Average $25 Round Rock $47 *Denotes cities that have additional funding sources to supplement General Fund numbers. Above numbers reflect General Fund dollars only. From a budget perspective, no two Recreation budgets include the exact same line items/services. City of Round Rock recreation generates $1.8 million in annual revenue. Recreation Revenue per Capita Tyler $ 2 Longview $ 3 Georgetown $ 4 Frisco $ 5 McKinney $ 5 Austin $ 8 College Station $12 San Marcos $13 Pflugerville $16 Cedar Park $18 Bryan $20 Denton $34 Average $12 Round Rock $21

Provide Urban Infrastructure: 

Provide Urban Infrastructure Current Level of Service Design and Features: Our level of service is slightly below a Camry because street maintenance is programmed with preventative maintenance performed at slightly more than the desired 8-year cycle. Execution: Our quality of execution is good because preventative maintenance is performed annually, potholes are repaired in 1 day and pavement is repaired in 10 days. x x

Slide25: 

Cost Drivers 8% annual increase in new lane miles 38% increase in material costs Cost of labor and equipment Pavement condition Annexed roadways in poor condition Key Issues Roadways are vital to maintaining personal mobility, public safety and strong commerce in Round Rock Effectively and economically maintaining 930 lane miles of roadway Deterioration of roadways due to reactive or deferred maintenance Avoiding bonds to fund roadway repair and maintenance Cost Controllers Pavement Management System Condition based maintenance Increase frequency of lower cost maintenance FY 2005-06 Budget by Spending Category

Slide26: 

Per Capita Spending San Marcos* $ 30 Cedar Park* $ 40 Pflugerville* $ 52 Tyler $ 56 Frisco $ 66 Bryan $ 80 College Station $ 85 McKinney $ 85 Denton $ 122 Longview $ 128 Georgetown* $ 142 Austin $ 144 Average $ 84 Round Rock $ 76 * This city does not maintain state road system traffic signals.

Legislative/Regulatory Services*: 

Legislative/Regulatory Services* Administrative/Planning/Regulation Year 1 Budget Administration $1.9 million Planning and Community Development 1.8 Legal 1.0 Building Inspection .9 Engineering and Development Services 2.4 Includes Public Works administration, Recycling Transportation Services administration .8 Municipal Court .6 Support Services Finance/Purchasing 1.8 Information Technology 1.2 Human Resources .8 Vehicle Maintenance 1.0 General Services Common Costs (i.e. buildings, insurance) 2.3 Social services funding .2 Transit funding .1 Total Legislative/Regulatory Services $16.8 million * These departments/functions represent services required to implement and maintain administrative order and to support the City’s core services. As such, advice on these services/costs is not being sought through this process.

Slide28: 

Organization-wide cost drivers Health insurance Population growth Federal mandate for drainage Transit system expansion Public safety salaries Organization-wide service indicators City of Round Rock tax rate, utility rates lowest in region Bond ratings are AA- (Moody’s), AA3 (Sandamp;P), which are high-level, investment-grade ratings 76 percent of residents say City headed in right direction, according to survey 62 percent say city is doing a good or excellent job of listening to and responding to needs of citizens City has received annual budget, financial reporting awards for 13 consecutive years Organization-wide cost controllers Automation/technology Managed care/wellness initiatives Economic development Partnerships/regionalism Employee safety programs

Slide29: 

Key Financial Issues for the City’s General Operating Fund Other sources of sales tax Sales Tax is primary funding source for all programs Sales Tax is volatile, subject to economic changes Any loss of Sales Tax is replaced with property tax increases or reduction of services General Fund Revenue Sources As we plan, in order to maintain financial strength the City MUST AVOID high reliance on sales tax AND a high property tax rate because:

Slide30: 

Area City Tax Rates Compared per $100 of valuation The City does have a high reliance on sales tax and, as a result, Round Rock citizens have one of the lowest property tax rates not only in the area but also in the state. However, Round Rock citizens also pay property taxes for other governmental services as well. Round Rock ISD, Williamson County and the Upper Brushy Creek Water Control Improvement District are all funded with property taxes from Round Rock citizens. How does the City of Round Rock compare? 2005 Round Rock Property Tax Rates per $100 of valuation $1.833 $.499 Total = $2.72 per $100 $.371 $.02 Local property taxes

Slide31: 

Residential City Utility Rates Compared (monthly cost) The Utility is a stand-alone enterprise fund driven by demands placed upon it by customer use. It does not compete with tax dollars in the General Fund. The Utility pays its own way by charging rates commensurate for the costs of services provided. The strength of the City’s utility helps make Round Rock an attractive place to live and do business. The primary goal of the Utility is to provide excellent services and help sustain growth while keeping customer rates low. City of Round Rock Water/Wastewater Utility Commercial Utility Rates Compared (monthly cost)