DEPARTMENT: Office of Management and Budget
DEPARTMENT HEAD: Maria Villagomez
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
City Council Worksession on the FY 2016 Proposed Budget
SUMMARY:
Staff presentation on the FY 2016 Proposed Budget focusing on, but not limited to, the following City Departments:
A. Planning
B. Office of Sustainability
C. Employee Healthcare & Civilian Compensation
D. Economic Development
E. Office of Historic Preservation
BACKGROUND INFORMATION:
The FY 2016 Proposed Budget was presented to the Mayor and City Council on August 6, 2015. The FY 2016 Proposed Budget reflects City Council policy direction and community priorities. The Budget decreases the City’s property tax rate, increases funding to streets and sidewalks, and maintains public safety spending below 66% of the General Fund. Additionally, budgeted financial reserves are maintained at 15% of General Fund revenues. The budget proposal does not recommend any layoffs of uniform or civilian employees.
The Proposed Consolidated Annual Budget, comprised of all funds excluding transfers, totals $2.5 billion. The General Fund budget is $1.1 billion; restricted funds, including Aviation, Development Services, and Solid Waste, total $780 million; and the FY 2016 Capital Budget is $670 million.
Following the presentation of the proposed budget a series of city council budget worksessions are scheduled from August 11 to September 9. At these sessions City staff will review the budget proposals with the Mayor and City Council in detail. The budget is scheduled to be adopted on September 10 for the City’s fiscal year that begins on October 1.
ISSUE:
A budget worksession is scheduled for Tuesday, August 25, 2015 from 10:00 A.M. to Noon and 2:00 pm to 5:00 pm at the Municipal Plaza “B” Room. At this session, the City Council will be presented with the FY 2016 Proposed Budget for the Planning, Office of Sustainability, Employee Healthcare & Civilian Compensation, Economic Development Department, and Office of Historic Preservation.
Planning and Community Development
Annexation
In 2014, 30 areas were studied, and five priority areas were identified for limited purpose annexation to include:
• FY 2015 Phase I: IH 10 West, US 281 North, and IH-10 East; and
• FY 2016 Phase II: Hwy 151 and US 90/Loop 1604
In 2015, for Phase I, informational meetings were held in March to May and Open House Sessions were held in August which provided details on the proposed limited purpose annexation. Public hearings for Phase I are scheduled for September to December 2015.
In 2016, for Phase II, planning studies, regulatory plans, and zoning and land use plans will be prepared. Open house sessions for the public will be held in July to August, and public hearings will be held during September to December 2016.
During the 2015 Texas Legislative Session, several bills were introduced that would have eliminated limited purpose annexation and required a majority vote of property owners to approve city-initiated annexations. Although this proposal failed, it is likely that the 2017 Legislative Session will see similar bills introduced and likely bracketed for San Antonio.
A Phase III annexation plan has been prepared and will be reviewed with the City Council. Phase III has additional areas for annexation consideration and could begin in FY 2016 if desired by City Council.
FY 2016 Proposed Budget
The mission of the Department of Planning and Community Development is to improve the livability, economic vitality, and safety of San Antonio neighbors, corridors and special districts through active engagement in strategic planning, reinvestment initiatives, and community development policy. The Department currently is working on developing the first modern Comprehensive Plan for the City of San Antonio.
The services provided by the Department of Planning and Community Development are collectively funded by the General Fund, the Tax Increment Financing Fund, Grants, and the Economic Development Incentive Fund. Below is a summary of Planning and Community Development’s funding and position counts that would be authorized in the FY 2016 Proposed Budget.
|
FUND |
FY 2016 PROPOSED BUDGET |
AUTHORIZED POSITIONS |
|
General Fund |
$3,581,574 |
19 |
|
Tax Increment Financing Fund |
485,586 |
7 |
|
Grants |
15,889,645 |
32 |
|
Economic Development Incentive Fund |
76,873 |
1 |
|
Total |
$20,033,678 |
59 |
The Proposed Budget includes $995,572 in improvements to provide funds for the Annexation 360 Program, neighborhood revitalization, and the Housing Policy Unit. Two positions are recommended to be added to form the Housing Policy Unit. The FY 2016 Program Change detail is included in Attachment I.
Office of Sustainability
The Office of Sustainability provides leadership and support to City departments, residents, the business community, and other public and private agencies to develop and implement plans, programs, and policies that further municipal and community sustainability goals. Below is a summary of Office of Sustainability’s funding and position counts that would be authorized in the FY 2016 Proposed Budget.
|
FUND |
FY 2016 PROPOSED BUDGET |
AUTHORIZED POSITIONS |
|
Solid Waste Operating and Maintenance Fund |
$765,936 |
4 |
|
Energy Efficiency Fund |
1,171,214 |
4 |
|
Grants |
1,190,227 |
0 |
|
Total |
$3,127,377 |
8 |
The Proposed Budget includes $35,308 in improvements for B-Cycle operational support to ensure continuation of the program as B-Cycle transitions to a new leadership and business model. An additional $25,000 is included in Convention & Visitors Bureau for a total of $60,308 for B-Cycle operational support. The FY 2016 Program Change detail is included in Attachment II.
Employee Healthcare and Civilian Compensation
Civilian Compensation
The FY 2016 Proposed Budget includes increases to civilian compensation including ongoing maintenance of the Civilian Step Pay Plan, a 2% cost of living adjustment, and performance pay for Professionals, Managers, and Executives. Additionally, the lowest entry wage will be increased from $11.47 per hour to $13.00 per hour. Also included is a cost of living adjustment for civilian retirees equivalent to 0.5% of their annuity consistent with TMRS rules.
Civilian Employee Health Care Benefits
The FY 2016 Proposed Budget Employee Benefits Fund is $130,846,032. The Fund consolidates the revenues and expenditures associated with benefits provided to City employees including medical, dental, and vision insurance.
As the cost of health care steadily increases, the City continues to offer employees a choice in health plans to best meet their individual needs. The City is self-insured for health care benefits, meaning the City and employees share all health care costs.
For FY 2016, employees will continue to have the option of participating in the Consumer Choice Preferred Provided (PPO) or the New Value PPO.
For those in Consumer Choice, the City will again provide a $500 contribution ($1,000 for family) to an employee’s Health Savings Account (HSA). The Consumer Choice plan continues to promote consumerism and encourages employees to take a more active role in managing their health care - placing more of their health care decisions in their hands. The plan will continue to have premiums lower than the other health plan option. The Internal Revenue Service (IRS) approved maintenance drugs covered under the Consumer Choice plan will continue to be exempt from the deductible.
The FY 2016 Proposed Budget includes premium changes to both plans. There are no recommended plan design changes to either the Consumer Choice or New Value. There are no plan design changes proposed for the dental or vision plans.
Retiree Benefits
The City remains committed to providing health care insurance for retired City employees. Non-Medicare eligible retirees are eligible for the same health care plan options as active civilian employees, including Consumer Choice PPO with a Health Savings Account and New Value PPO. Medicare-eligible retirees have the option of two fully-insured Medicare Advantage health plans.
Economic Development
The mission of the Economic Development Department is to foster economic growth through collaboration and innovation for the continued prosperity of the City’s community. Economic Development Department activities aim to promote a sustainable economy through job retention and growth, foreign and domestic capital investment, and workforce development. The Economic Development Department is actively engaging in efforts to support opportunities to attract local, national and global companies to the City, capacity building for local companies, support entrepreneurialism, and create and retain jobs in the City.
The Small Business Office Division of the Economic Development Department facilitates entrepreneurial business development and growth through various programs and services. Specifically, the Small Business Office administers the Small Business Economic Development Advocacy (SBEDA) Program, which leverages the City’s purchasing power to grow small, minority, and women-owned businesses. Another Small Business Office project is the development of Café Commerce, which provides entrepreneurship education and mentoring, as well as serving as the resource and referral clearinghouse or “one-stop” for business information.
The Economic Development Department’s General Fund FY 2016 Proposed Budget is $9,172,164 and authorizes 33 positions. This budget includes a transfer of $2,250,000 to the Economic Development Incentive Fund, which provides for incentives to attract large scale businesses in targeted industries and other significant investments to San Antonio. Additionally, a transfer of $1,578,542 is included for the Starbright Industrial Development Corporation Fund to repay the debt service associated with the Toyota Plant land purchase. The Department also manages the Workforce Development Delegate Agencies, which are funded through the General Fund in the amount of $2,468,163.
The FY 2016 Proposed Budget includes funding in the amount $604,800 in improvements to add one Workforce Development Manager Position and provide funds for the renewal of the City’s contract with the San Antonio Economic Development Foundation.
The Budget also proposes a reduction of $100,000 for the San Antonio Economic Development Corporation due in part to a decrease in its contractual obligations. The FY 2016 Program Change detail is included in Attachment I.
Additionally, the budget proposes reorganizing the International Relations Office to Economic Development. This allows for better alignment of economic development and foreign relations efforts.
Office of Historic Preservation
The Office of Historic Preservation is responsible for the historic preservation program of the City of San Antonio, which focuses on preserving, protecting, and enhancing the historic districts, places, structures, buildings, objects, sites, landscapes, archeology, and culture of San Antonio. OHP establishes planning processes and historic district design guidelines and supports the Historic and Design Review Commission’s review process.
The Historic Preservation’s FY 2016 Proposed Budget is $1,560,838 and includes 17 authorized positions. The proposed budget provides second year funding for the 18-month Vacant Building Registration Pilot program. The Vacant Building Ordinance took effect January 1, 2015 and is intended to make unoccupied buildings safer and more attractive for redevelopment.
ALTERNATIVES:
This item is a scheduled worksession for the FY 2016 Proposed Budget.
FISCAL IMPACT:
This presentation provides a briefing on the major initiatives within the Planning, Office of Sustainability, Employee Healthcare & Civilian Compensation, Economic Development Department, and Office of Historic Preservation. The FY 2016 Budget is scheduled to be adopted by City Council on September 10, 2015.
RECOMMENDATION:
This item is a worksession for discussion of the FY 2016 Proposed Budget and is for briefing purposes only.