City Council - Regular Meeting

Good evening, ladies and gentlemen. Uh individuals here gathered for us to uh have some great conversations. I'd like to call to order our work session on January 27th at 5:00 p.m. Uh our first item of business is a presentation on the finance department. Uh we're joined by our finance director, uh Miss Waldin. Thank you for being here with us tonight. Good evening. And I didn't have any live animals or anything like that. Oh, I thought this was St. Patrick's Day. But dollars. Always prepared.

All right. Um, so anyway, you got your squishy dollars and uh I won't have a cat crawling all over me while I present. So, um, it's your stress. Like when I bring you stressful things, you'll have your little dollar bill there. So, uh, let's Oops. We may have a delay again. Hopefully, I didn't push it again. So, um, this is the finance department staff. I actually got really recent pictures. Ian did not make our employee appreciation end of your party, so we drew him into the picture with his award. Um I know exactly. Um so finance has 16 uh budgeted positions. Utility billing has six uh quite a few responsibilities and services that we cover uh under our department. Um, these are not an all-inclusive list, but um, a pretty complete list. I would want to kind of point out compliance reporting that that continues to become more and more every single year it seems like or at least every other year. Um, we get u more additional things that we have to track and report and so uh, that's always growing. year in review in November and we're going back. We're we're talking about fiscal 25. So, I had to like really go back in my in my brain there, but we did go live with utility billing in November of 2024, the very beginning of our fiscal year. And um that was a that was a journey. Um but we've on we're on a better system. Um there's lots of uh pluses about the new system and we're continuing to learn. Um we are going through what they call a pace audit right now with our provider who analyzes

kind of our movements within the system and then comes back with recommendations on ways we might be able to uh become more efficient or maybe they're you know we're doing five steps and it could be done in two. So, it's a good time after you've kind of been in the system and been live for a while to kind of go back and make sure that we're using it the most efficient way. Um, right at the end of the fiscal year, um, one of our staff took the initiative to work with our business process analyst um, to start revamping a new accounts payable process. And so this was um a team of staff across the city to kind of talk about that process and what it does look like and what it could look like and start working with our provider on workflows and how it would actually work in the system. And so we are starting to test and go live right about now on that new process. And so it will cut down numerous steps in that process. And I'm very proud of our staff for always kind of looking at um what can we how can we do better? Like how what can we um do to improve this? Um we have been notified that we received the distinguished budget presentation award for our fiscal 25 budget document. And we've also received the certificate of achievement and excellent in financial reporting for fiscal 24's um annual comprehensive financial report. I think that's okay. Um, so this is just kind of snapshot of the number of transactions that we might touch in a fiscal year. So purchase orders 473 totaling $22 million.

Contracts 210 totaling uh over 260 million. PECARD transactions almost 14,000 at 3.6 million. Um on in our with with our PCR program we do uh get a rebate for um that program. So that's always a nice plus. Uh request for proposal and bids 29. We did almost a little over 9,800 in payments totaling 47 million. We do bi-weekly payroll. Um on average it's about 475 time sheets and payments. Um but in the summer it gets up to about 620 um when the pool and the parks and all the part-time people come on for the summer. And then we had 58 active capital projects. Just a snapshot of what we've done in debt management. We did issue the 25 certificate of obligation, 121 million, and this was for a combination of streets, water, and wastewater infrastructure. Um, we issued a 25 refunding bond for $18 million. I believe the savings on that was a little over a million. So, um, s significant enough to go through the process of doing the refund. We also issued a special assessment for the metal arc pit for 14.7 million and we were working on which we have now closed uh the wifiatron 2 loan of 176 million and the application for the Texas Water Development Board actually started back in 2024 and we're scheduled to close on both of those loans February 24th. So that is a always a long process. Um but

we have made it down to the final steps. Financial reporting obviously we do do the annual comprehensive financial report which is part of the I would say three three months that we spend uh through the audit and the report is the final um document that's produced. um our budget to actual fiscal 25, our fiscal 26 budget adoption, and now um we there that budget never ends. Like we prepare, we adopt and now we um use it as the tool all year long and monitor um actuals against budget. debt obligations, we pay those uh almost all of them are paid twice a year. Um and so we monitor and pay those uh semiannually. Uh debt transparency, some of this gets into some of the comproller requirements. So we do have debt transparency compliance which is out. It's just been updated on our website within the last week. We do monthly and quarterly council reports, but we also do quarterly meetings with every department and we review their budget to actuals and go over any variances and any um anything that we need to know about um we do that on a quarterly basis and that's very helpful. Um hotel occupancy tax is also an annual report. It's due um within the next month or so. an economic development corporation annual report and the TUR's annual report. So I did want to highlight uh financial transparency. We have added some new new items onto our website. So we've added the quarterly reports. Um obviously the annual financial documents are on there. The budget documents are on there. So,

if you haven't gone on there in a while, we do have um some new items added and some uh the debt transparency was just updated. On the utility billing side, total customers, a little over 25,000 new customers within the fiscal year, a little over 4,000. New meters, 421. Water smart active like um active login on wmart a little over 3,000 portal payments 141,000 um our average monthly bills we print um a little over 10,000 and we email a little over 14,000.

I'm I'm curious that new cumber new customers number seems uh awfully high. uh is that just because we we have that many people turn over in the city or is a significant number of those uh new buildings. So the so the new meters are new meters in the system the 421 421. So the new customers are truly like new applications new either. So those are 3,000 almost 4,000 uh people who are new to the city or does that include people who move within the city? It could include people that move within the city. Okay. So that's just new new customer processed even though they moved two doors down.

Could be commercial too, right? It could be. Yeah. Okay.

Yeah, it's all all new customers. Um I like the number though because it does represent like these are staff has to work all of those new applications set up. you know, utilities has to go out there and do a disconnect or a reconnect or I mean, all of those new customer activities come with several um several things um for for to get them back up and running. Did want to highlight some enhancements that we're working on in utility billing. Teller notify is just a module that that our provider provides. Um uh one of the one of the things it will do is in our phone tree it will actually give an option for them to be a the customer to be able to um get their bill amount, get their like there's certain information that they'll be able to get just right over the phone. So, if we're not open or if it's on a weekend, um they don't have to wait if they haven't if they don't have a portal login, which of course would be the easiest way to get the information, but um but this will give them another option. Um it'll also allow us to be able to target customers when we need to send out notifications and we can do it all within the system and everything gets log on logged onto the account. So if we do a notification, it it flags on that account that we did that notification. So it's actually really good for our customer service representatives to be able to see exactly what that customer if we send out a targeted email, it shows us that they open the email. Like there's really great information that we get on the customer. Um and so we are in implementation on it right now. So

hopefully within the next couple of months we'll be able to roll that out. The other thing we're doing, we had this we had this u water problem here recently where there was a huge spill and uh a contractor had broken a line and there were people over significant part of the city that had some water disruption. Now, obviously the our our information people did a great job of putting that out on the the uh uh various social media and and and and was on I believe it's on the front page of the the city website if not mistaken.

But would this once this is fully operational, this would allow us to send text messages directly to people in affected areas? Yeah, it's a lot easier to like target the area and then just send messaging to that targeted area through this system. All right. So, if you if you live in the area that's serviced by this pipe, your water pressure is going to be down in the next two days. Yeah. Please don't panic. Don't don't flood us with calls. We know about it. We're working on it. Yeah. Okay. So, this will help us a lot. the system that we use now, we can still still send notifications out, but it's a lot harder to like target the audience. Um, and so this will be a lot easier.

What other type of notifications would be sent using this feature? I mean, actually, this will go across more than just utility billing. If you have the notify module, you can actually use it in other areas, payroll, AP. I mean, we have it. So, we will make sure that we utilize it as much as we can across all the platforms. Um, but right now, we're focusing on the util utility billing side. Is that like reminder your bill is due kind of notifications or we can send out? I'm just wondering. I didn't know what Yeah. Or is it just if there's service interruptions? So it's any kind of notification. She said goodness.

The other thing we're looking at is right now we have a payment portal and we have water smart and we're looking at providers that work alongside wmart to be able to have a single sign on. So basically you would go on to water smart and you that's where your payment portal would also live. So we're going to get away from having the two portals. Um and our goal would be just to have the one water smart portal. It also pushed people to water smart which

which we need. Um we don't have as many on the water smart as we would like. I think um the number was like 20% of eligible accounts and so I think this would help a lot and it would just kind of streamline and simplify uh the payment portal as well. And we're looking at vendors that provide more options for the payment. So like text to pay and um so not only will we get a single sign on but we will also hopefully have more flexibility in how you pay. So

have you looked into why people aren't adopting water smart? I mean I I picked it up obviously I think you told us about it or maybe there was some of the water guys who told us about it when it first rolled out. So I looked into it right away and signed up. But you said only about 20% of the eligible customers are using Watermart and we've had that program now for about a year and a half. Is that right? Yeah, it's too

I mean I know that utility staff is always pointing people in that direction when people call and um they have questions about you know their usage or their bill or we're always pointing them back to the water smart model. we can literally send them a link that will allow them to go on there and sign up. Um, probably could use some targeted marketing to kind of ramp it up. Um, but as far as why people don't go and look at their and set up notifications, it seems like that would be something people would want. Um, they're going to find out about a leak in their house a lot quicker um that way. Otherwise, it's when you get your bill and you and you you're like, "Oh my goodness,

my bill is extreme." Um, so our customer service representatives do review those reports on a regular basis and we'll send notices out if they see something abnormal happening with an account. We do have some notifications set up in the system that will flag us that somebody might have a leak and we will go ahead and notify them. But it would be very helpful if uh and that's my next slide is just how to get on the free digital portal um and um create a login. It it gives you detailed information. If you have something running like a running toilet or something like that, you're you're you're going to be able to see it on the graph because the reads are pulled pretty regularly.

It's a great feature. I'm just trying to figure out why 80% of the eligible counts after two years I mean it wouldn't surprise me 6 months in we had 80% non adoption but after two years there there's something there's something going on inside people's heads or they're they're not getting the information there either there's a resistance or there's a lack of of of awareness. I think combining the payroll portal with the water smart portal will actually help because we have a lot of people in the payment portal and so combining those 50% of the total customers are in the pay.

I'd have to get that. I'm not totally sure but I know we process there's a lot of payments processed out of the portal. Um so people are going to the payment portal. So, if we can combine the two portals, um I believe that well are obviously we'll have more success with getting people because if you set up set it up on autopay, you never go back again unless you signed up for the alerts. So, I think we're getting a little too deep into our utility alerts. I did have a question

on the the water smart. Um, is there a an option to look at hourly um, usage? Cuz I had I've gotten those alerts and have no idea. We're like wondering go where what is it? Was it like, you know, so when I looked at it, it's only daily. I looked extensively. So for an hourly option, couldn't find it. As somebody who has, you can always call a utility. They'll walk you right through it.

Yeah, I would love I would love to have this. I'm still jealous. Y'all get this. And then um just a snippet of the payment portal. We do try to drive people to the payment portal, you know, set up their information, set up an autopay. Um we have a lot of other um ways that people can pay, but um this one is is convenient for them and I believe it's convenient for us as well because we just get the downloaded file and process it that way. So is this Serena's bill? I don't I don't think so.

And I believe that was my last slide. If you have any questions for me, Tracy, thank you so much. Uh any other questions related to the presentation by our finance department? All right, that takes us to item 2B, which is a presentation regarding the Flugerville Community Development Corporation FY26 first quarter financial report. Uh, and finance director, uh, Tracy Waldron. Looks like you get this one, too. Just I'll just sit tight and stay here.

So, yes, this is the first quarter. Total revenue is about 21% of budget. Sales tax is obviously their biggest revenue. It's at 24% of budget. Um, our we're trending 3.8% year-over-year and we budgeted 3%. So, that's favorable. We're going to continue to monitor that. Um interest income unfortunately is trending below budget. So I don't anticipate that it will hit 100% budget this year. And then there there's a larger other revenue, but it it relates to the water park and it always comes in on the fourth quarter. On the expense side, 17% of budget. I just kind of have the breakdown here. Personnel is 18% operating 20%. Development incentives are nine. Most of that is paid out in quarter 4. Capital projects are 5% and debt payments are at 32%. They did receive the board uh when we presented their quarterlys to them uh on the 21st. Um, now that we're doing our own investment uh tracking software, we were actually able to generate just a a PCDC investment report. So, I hope that that was helpful for them.

How awesome is that? On your report, it will it has uh all of the investments including PCDC's, but we were able to produce them just their own investment report. So, um they received that as well. Awesome.

That's it. Council, any questions on the PCDC report? Seems pretty straightforward. All right. Uh, at this point, I'm going to Oh, yes. Got one more one more discussion item. This is a council discussion item. This is regarding potential amendments to the master fee schedule. Um, this is something that I brought forward. I actually uh I had asked our attorney to draft an ordinance. Uh, but it's not ready yet. So, hopefully that will be on our next agenda. Uh but my goal here uh wanted to uh clue everyone into what I'm trying to accomplish. Uh if you look at our master fee schedule, uh particularly under our animal shelter, uh you'll see that our uh uh pause director has the ability to um reduce certain fees in certain scenarios. Uh leveraging their judgment or specific criteria uh to reduce fees. One of the things we did with our budget uh this last year, we amended our temporary certificate of occupancy fee uh so that it doubles each time uh each each month. And um I believe we had a gentleman who came and spoke to us um few months ago, maybe just last month. Um it's all adding up uh about uh how he was process progressing through that uh that process trying to get to the final co. I think we set that doubling as somewhat of a punitive nature to ensure that people aren't lingering on a TCO.

Doubling certainly certainly hikes that up. Um the goal here would be to enable the um the building official or the planning and development services director to also exercise their judgment on that TCO fee.

Great idea. So that um if someone is legitimately progressing towards that CO but is um falling behind for whatever reason um that our professional staff who has the experience and the knowledge has the ability to uh do what is right by our uh our community in order to make that um an option. So that's what I'm what I'm hoping to accomplish with thatable like is it is it sustainable? I I would I would imagine so. Um I can tell you at least the the gentleman who spoke uh before council uh a month or two ago um I believe he told me right now his TCO would be at a $4,000 price tag instead of 500 and next month would double again to 8,000. um if he's legitimately progressing towards getting a uh a permanent co that would be certainly ownorous and inequitable. Um so that would be uh that would be the goal. But again, uh, not wanting to take the tools away from our staff and ensuring that we have the ability to continue to leverage the TCO fee, uh, to gain compliance. Um, but allowing for the, uh, uh, the ability like we do in pause.

I always say, um, to answer your question, you bring up a good point. Um, I I always treat people fairly, but not the same. Oops. And the same thing I go with my kids all the time is that you have you have a sense of equity of fairness in what you do. It's typical for a certain situation doesn't mean necessarily you're going to treat everyone the same in in how you go about getting the things done regarding fairness across the board. And I think that allowing for flexibility allowing for them to use the discretion. I mean they're just sneezed. They know it right there. So we'll know if somebody's trying to screw us over and you know work for something else or someone who's actually making a point to it. And then if we see them using this their their discretion in an equitable fashion, well, that's when we have a city manager, other folks, and that's when people can bring it up to us as well. But I think that you you go in thinking, okay, people are going to use the best judgment and then if something happens.

I think to to jump in though, this is significantly higher stakes than waving an adoption fee. Um, do I think that Yeah, I would want to see some sort of governance or something around it, whether that looks like an application process or it goes to the planning and zoning commission or to us or somewhere, I think, because we I would also hate to be the employee that approves one on in good faith and then I and I'll think you're Yeah. Yeah. Go ahead. That's what I was asking. So, you you could do it a few ways. Um I I will request that it not be a director. That's um

uh overpopulation is the way that the animal shelter is allowed to do that. So we actually have standards around what that means. Uh this uses the word substantial which I do fear sometimes in the development word the word substantial. Um I could drive a 18-wheeler through the definition of that word. So, um, but what if if you wanted governance, you could do the city manager makes a recommendation and then here's what we believe to be substantial or not substantial and you could take it to a vote or I at minimum I would just ask that the city manager be held responsible um for that decision if not the governance of the body. Yeah, I agree that I think there should be some guardrails or governance over that. Um, you know, to to provide feedback on how the applicant is, you know, working towards a a resolution um and to have some oversight or visibility in into that. I mean, I did feel originally that the punitive nature of doubling every I mean, that that was a lot. Um, so 8,000 a month or you know that's I don't know. I mean yeah.

So but I guess um I I don't know enough about the details about you have a small business that's trying to do something versus a large thing. I don't know if there's a difference in fees based on the scale or scope but um yeah but I I think there definitely needs to be guardrails. It's not just a person's judgment, but there's like, you know, standards, you know, for basically a fee waiver request.

Well, I I think that that's why he's bringing back the policy because I I don't I I never heard anything in there that one, there would not be some criterion except for that. Two, that um it's important for us to actually, you know, we have faith, understand regarding our mess, our experts who are any specific fields with it while at the same time having oversight from a city manager to get something involved with that. and three that the policy wouldn't have some sort of um you said clarity, guidance, anything else from there as well for flexibility for us to see that. I think I think it's a great idea. I think that it's a it's an idea that's a long time coming and I'm can't wait to see what our attorneys no pressure comes up with for us to go ahead.

Yeah. Yeah. Now, there's clearly extenduating circumstances where this is is very much appropriate, but doubling every month can get out of hand, completely out of hand real fast. It's the motivation though. Uh it's motivation to do business somewhere besides Flutterville.

Uh you know, if you're looking at a $64,000 fine. Oh, but you know, one of the the contractors got held out, so he can't do it until next month. So, it's a $128,000 fine the month after that. And you know, at that point, I I you know, most businesses look real skeptically at the idea of ever doing a project in Flugville again.

Well, I mean, if you don't have your certificate to operate and we're allowing you to still operate and make money, then there needs to be a penalty penalty with that. If you're not ready to open, then don't make money. Don't open and make money. Just wait. It's a penalty.

A penalty is one thing. You know, a penalty of $64,000 is another thing. The penalty of $128,000 is another thing. A penalty of $256,000. You know, when you double every month, you get into really, really large numbers really quickly. Um, and maybe we should look at putting a cap on that. Uh, I do like the idea of putting some kind of appeal in place where they could appeal to the city manager and say, you know, it it looks to me like this is getting out of control and possibly even an appeal to the city council for large

fines. I don't want it, you know, I don't want anybody appealing a $400 fine to the city council. That seems too below a threshold. Uh but if somebody's looking at a $64,000 a month fine, you know, uh that's a that's a big number. And you know, if the if if the city manager wants to spend more than $50,000, she's got to come to us. Maybe if there's a fine that's over that, it should come to us. Also, guardrails, I look forward to the conversation. and Kim's point. I look forward to a 70 vote instead of a 61 vote whenever this comes up on the

All right. Any other feedback input into into that concept? Is this um just for that particular temporary um certificate of occupancy or is this going to be for any fine or penalty that's in the master fee? The the TCO, as I understand it, is the only one that doubles. Yeah. The only one that increments at uh that rate. So, I would plan to focus on just that. Awesome. Thank you. Awesome.

All right. Uh, with that, we'll move on to items 2D and 2E. These are going to be executive session items. First is consultation with legal counsel pursuant to section 551.071 of the Texas Government Code for discussion regarding the central wastewater treatment plant expansion project and consultation with legal counsel pursuant to section 551.071 071 of Texas Government Code for discussion regarding the proposed settlement and release related to property located at 515 Oak Meadow Drive in the amount of 27,55416 to fully resolve claim number TX252749 filed through the Texas Municipal League risk pool. Uh we are in executive session at 532. Awesome.

I was like, I'm not going to be here to change clothes. I'm have to go just like this. 623. We're back from executive session. No action was taken. That concludes the items on our work session agenda. We'll see you all at 7 o'clock.