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City Council Agenda May 14, 2019

NOTICE OF MEETING OF THECITY COUNCIL

OF BUDA, TX

4:00 PM - Tuesday, May 14, 2019The Lodge at Grace

4550 FM 967, Buda TX 78610Buda, TX 78610

This notice is posted pursuant to the Texas Open Meetings Act. Notice is hereby given that a Special City CouncilMeeting of the City of Buda, TX, will be held at which time the following subjects will be discussed and may be actedupon.

A. CALL TO ORDER

B. ROLL CALL

C. SPECIAL AGENDA

C.1. Overview of Budget Procedure and related matters (City Manager Kenneth Williams)

2019-0414 CC Powerpoint.pdf

C.2. Presentation and discussion on debt overview, debt service, and debt management (Finance DirectorJune Ellis and Jennifer Ritter with Specialized Public Finance, Inc.)

C.3. Presentation of economic outlook and indicators for Austin/Central Texas Region, City of Buda's FY2018-2019 financial trends, and budget projections for major funds (Finance Director June Ellis)

C.4. Presentation and discussion on growth trends, demographics, and projections (Assistant City ManagerLauren Middleton-Pratt)

c4 Budget Presentation_Sunfield_MUD_annexation_memo.pdf

C.5. Discussion on City Council Vision, Mission, Goals, and Objectives for FY 2019-2020 (City ManagerKenneth Williams)

• Transportation (City Engineer John Nett) • Fiscal Responsibility (Jennifer Ritter of Specialized Public Finance, Inc.) • Regional Draw (Tourism Director Lysa Gonzales, Assistant City Manager Micah Grau, & Parks & Rec. Dir.

Greg Olmer)

2018 Mission & Vision.pdf

2019-0325 SP Rtrt Minutes.pdf

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https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/360848/2019-0414_CC_Powerpoint.pdf

https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/360857/c4_Budget_Presentation_Sunfield_MUD_annexation_memo.pdf

https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/358796/c6_2018_Mission___Vision.pdf

https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/354779/h1_2019-0325_SP_Rtrt_Minutes.pdf

City Council Agenda May 14, 2019

D. ADJOURNMENT Requests for accommodations must be made 48 hours prior to the meeting. Please contact the City Clerk at(512) 312-0084, or FAX (512) 312-1889 for information or assistance.

I, the undersigned authority, do hereby certify that the above Notice of Meeting of the Governing Body of theCity of Buda, was posted on the bulletin board in front of Buda City Hall, which is readily accessible to the publicat all times, by 6:00 pm on May 10, 2019.

/s/____________________________Alicia RamirezCity Clerk

Meetings scheduled in the Council Chambers are set up to publicly broadcast meetings. You may be audio and video recorded while in this facility.Meetings scheduled in other City Facilities are set up to publicly audio record meetings. You may be audio recorded in the other City Facilities.

In accordance with Article III, Section 3.10, of the Official Code of the City of Buda, the minutes of this meeting consist of the preceding MinuteRecord and the Supplemental Minute Record. Details on Council meetings may be obtained from the City Clerk’s Office, or video of the entiremeeting may be downloaded from the website. (Portions of the Supplemental Minute Record video tape recording may be distorted due toequipment malfunction or other uncontrollable factors.)

The City Council may retire to executive session any time between the meeting’s opening and adjournment for the purpose of consultation withlegal counsel pursuant to Chapter 551.071 of the Texas Government Code; discussion of personnel matters pursuant to Chapter 551.074 of theTexas Government Code; deliberation regarding real property pursuant to Chapter 551.072 of the Texas Government Code; deliberation regardingeconomic development negotiations pursuant to Chapter 551.087 of the Texas Government Code; and/or deliberation regarding the deployment,or specific occasions for implementation of security personnel or devices pursuant to Chapter 551.076 of the Texas Government Code. Action, ifany, will be taken in open session.

This agenda has been reviewed and approved by the City’s legal counsel and the presence of any subject in any Executive Session portion of theagenda constitutes a written interpretation of Texas Government Code Chapter 551 by legal counsel for the governmental body and constitutesan opinion by the attorney that the items discussed therein may be legally discussed in the closed portion of the meeting considering availableopinions of a court of record and opinions of the Texas Attorney General known to the attorney. This provision has been added to this agenda withthe intent to meet all elements necessary to satisfy Texas Government Code Chapter 551.144(c) and the meeting is conducted by all participantsin reliance on this opinion.

Attendance by Other Elected or Appointed Officials: It is anticipated that members of other governmental bodies, and/or city boards,commissions and/or committees may attend the meeting in numbers that may constitute a quorum of the body, board, commission and/orcommittee. Notice is hereby given that the meeting, to the extent required by law, is also noticed as a possible meeting of the other body, board,commission and/or committee, whose members may be in attendance, if such numbers constitute a quorum. The members of the boards,commissions and/or committees may be permitted to participate in discussions on the same items listed on the agenda, which occur at themeeting, but no action will be taken by such in attendance unless such item and action is specifically provided for on an agenda for that body,board, commission or committee subject to the Texas Open Meetings Act.

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City Council Agenda Item ReportDate: Tuesday, May 14, 2019

Agenda Item No. 2019-312-Contact: Alicia Ramirez

Subject: Overview of Budget Procedure and related matters (City Manager KennethWilliams)

1. Executive SummaryThe fiscal year of the City of Buda shall begin on the first day of October and end on the last day ofSeptember. The City Manager shall submit a proposed budget containing a complete financial planfor each fiscal year. Such a budget shall be submitted to the City Council not more than one hundredtwenty (120) days but not less than thirty (30) days prior to the beginning of each fiscal year.

The budget shall contain a brief budget message, revenue summary, departmental expendituresummary, departmental budgets, schedule of outstanding bonded debt, schedule of capital outlaysby department, review of property valuations, analysis of tax rates, tax levies and tax collection, anda provision for financing the current capital improvement program.

City Council shall publish notice of hearings before approval of the budget, if required. After thepublic hearing, the City Council may adopt the budget with or without amendment. In amending thebudget, it may add or increase programs or amounts and may delete or decrease any programs oramounts, except expenditures required by applicable law or for debt service.

2. Background/HistoryThe budget process starts in March with the formulation of projections for the current fiscal year.Soon thereafter, City Council and staff participate in a budget workshop in which City Council statestheir goals and vision for the next fiscal year. There are meetings with the City Manager anddepartment heads to establish their revenue and expenditure projections for the next year. Theseprojections are then presented to City Council for discussion through a series of workshops as tohelp finalize a draft budget. Finally, the City Manager will present a draft budget for City Council’sconsideration in the August/September time period. A new budget is scheduled to start on October 1of each year.

3. Staff's review and analysis

4. Financial Impact 3

A spending plan will be formulated for the City of Buda that addresses all funds.

5. Summary/ConclusionThis process provides a complete financial plan for the fiscal year.

6. Pros and Cons PROS: Provides adequate planning of capital, financial, operations, maintenance, andinterest/sinking activities of the city.

CONS: None.

7. AlternativesN/A

8. RecommendationFormulation of a 2019-2020 financial plan for the City of Buda.

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M E E T I N G T H E N E E D S O F T H E C I T I Z E N S

City Council Meeting

May 14, 2019

CALL TO ORDER

This notice is posted pursuant to the Texas Open MeetingsAct. Notice is hereby given that a Special Called CouncilMeeting of the City of Buda, Texas, will be held on May 14,2019 at 4:00 P.M. in The Lodge at Grace at 4550 FM 967,Buda, Texas 78610, at which time the following subjects willbe discussed:

ROLL CALL SPECIAL AGENDA

C.1. Overview of Budget Procedure and related matters

(City Manager Kenneth Williams)

OVERVIEW

•Goal Setting

•Budget Creation

•Budget Implementation

MUNICIPAL BUDGET PREPARATION PROCESS

1. Long Term Perspective2. Establish Linkages to Broad Organizational

Goals3. Focus Decision on Outcomes4. Communication with Stakeholders5. Provide Incentives to Government Management

and Employees

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“Don’t let perfect get in the way of good.”

Anonymous

PROCESS

• Kickoff meeting in April

• 2018/2019 Projections

• City Council Goal Setting

• Department Heads Submit Proposed Budgets

• City Council Workshops

• Balanced General Fund Budget

THIS YEAR • Secured CAMPO funding for several projects:

- Main / FM 967 Improvements $1.4 M

- Garlic Creek Parkway Study $280,000- FM 1626 / FM 967 Intersection Study $200,000- FM 2001 Pedestrian & Bicycle Path $400,000

Total $2.2 Million

THIS YEARSecured HMGP 4245 grant totaling $1.3 million for Drainage improvements.

THIS YEARBegan construction on other Prop 3 and Prop 4 projects including Drainage Project Area 2, Drainage Project Area 3, and Main Street.

Project Area 2: Houston Street Area Drainage Improvements Project Area 3: Oxbow, Remuda Trail Bullwhip Pass

THIS YEARCompleted San Antonio Street/Garison Road

Improvements Project

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ACHIEVEMENTSMoved Into Municipal Complex & Held Grand Opening

ACHIEVEMENTSGreen Meadows Splash Pad NOW OPEN

• Filed application for the Garlic Creek Trails through the TxDOT Transportation Enhancement Program.

• Bid and beginning construction on the City’s largest capital project ever, the expansion of the WWTP $25M

• Secured permit for the WWTP expansion.• Buda Mill and Grain Named Best Economic Game

Changer through the Texas Downtown Association.• Buda Ranked Among Top Safest Cites in Texas for 2018

OTHER ACHIEVEMENTS ACHIEVEMENTSTourism accomplishments and highlights

• 75,081 room nights starting October 2018 through March 2019

• Return of the Capital of Texas Police Motorcycle Chute Out to Buda resulting in over 400+ room nights

• Supported the Texas International Wine Competition with its first event in Buda, which brought 10 international judges and wine from 8 different countries and multiple states

ACHIEVEMENTS• Debuted the branded Visit Buda, Tx mobile visitor center

tent at the Wiener Dog Races• Started the Breathe Easy Here video series• Hosted Budafest which had over 12,000 attendees

ACHIEVEMENTSTexas Main Street Program Events:• Inaugural Cocoa Jingle on Main & Downtown Lighting Ceremony yielding an additional 3,000 people

downtown

• Expansion of holiday lights connecting North & South end of Main Street; highlighted as "Hallmark City" for lights

• First Saturday gets a new logo

• Pardon Our Dust mats delivered to businesses on Railroad St. affected by construction

• Downtown Beautification Project - hanging planters

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RECOGNITIONCity of Buda Receives Unmodified or ‘Clean’ Audit

for FY 2017 and FY 2018

Having a ‘clean’, or unmodified audit means the City’s financial records have been determined by the audit firm to be free of any material misrepresentations.

AWARDSGFOA Certificate of Achievement Award – Budget & CAFR

AWARDSTML Excellence Award for Public Safety for the Mental Health Officer Program.

AWARDSAward of Honor from the Texas Association

of Municipal Officers for the Buda Back in the Day series.

Texas Main Street Program Buda Mill & Grain Co.

AWARDSUDC earned the Project Planning Award

from the APA Central Texas Chapter

Sustainability Award from the Texas Masonry Council

CHALLENGES• Completion of Bond Projects: Streets, Drainage, and Parks

• State Legislative Agenda

• Transportation

• Living with construction

• Economic Development

• Managing Growth and Infrastructure

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SPECIAL AGENDA

C.2. Presentation and discussion on debt overview, debt service, and debt management

(Finance Director June Ellis and Jennifer Ritter with Specialized Public Finance, Inc.)

Bond Debt Discussion – May 14, 2019

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• Specialized Public Finance serves as the City’s financial advisor

• We represent approximately 450 municipal entities across the state of Texas

• We are an independent firm, meaning that we don’t underwrite bonds

• We have worked with the City since 2004

• Your financial advisor has a legal responsibility to represent the City’s interest ahead of their own (fiduciary duty)

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Who We Are

• Requires bond election for authorization• General Election date in May and November

• Issued for any City purpose not to exceed 40 years

• Real Property

• Personal Property

• Legal Judgment

• Land Acquisition

• Secured by issuer's full faith and credit, and ad valorem taxing power

• Viewed as City’s most secure obligation

• Attracts low interest rates

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Types of Bonds – General Obligation Bonds

• Notice of Intent to Issue is required • Published in the local paper on the same day for two consecutive weeks

• First Notice must appear a minimum of 31 days before authorization

• An election is not required, unless a petition signed by 5% of the registered voters is

submitted to the issuer prior to the sale date

• If an election is required, the election is tied to General Election dates in May and

November (along with appropriate time period related to calling for an election)

• Securitized with tax pledge and specific revenue pledge

• Issued for any public purpose not to exceed 40 years

• Because they have a tax pledge, they sell at interest rates comparable to

GO Bonds

• Tax rate to pay debt service is not subject to roll back

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Types of Bonds – Certificates of Obligation

• Issued for revenue producing projects:• Water System, Sewer System, Sanitation, Special Projects, etc.

• Secured solely by revenues of the operating system

• Requires no voter approval

• Typically requires a reserve fund

• Sells at interest rates 25 to 50 basis points higher than comparable GO’s

(market dependent)

• Must meet promises set forth in bond ordinance:• Promise to maintain revenue or asset level sufficient to pay bonds and maintain

operations (rate covenants)

• Limit on additional Bonds

• Must maintain specified coverage ratio

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Types of Bonds – System Revenue Bonds

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• No voter approval required

• No publication of notice

• Secured by a limited pledge of ad valorem taxes

• Initial term limited to 7 years from date of issuance

• May be refinanced for term not to exceed 40 years

• May be issued for any governmental purpose project

• Interest rates comparable to GO’s

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Types of Bonds – Limited Tax Notes

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City of Buda – Debt by Type ($103,500,000 total)

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City of Buda – Self-Supported Debt

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City of Buda – Total Annual I&S Payment

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City of Buda – Remaining Tax-Supported Principal

‐

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

• Would the City be better off cash funding infrastructure?

• Should the City not fund infrastructure at all until it can retire its existing

debt?

• Should the City be using General Fund balance to pay for capital

projects?

• The City owes investors $149,396,521 in debt service (on $103,500,000 in

principal) between now and 2042. That means that 31% of payments

are for interest.

• Note that since 2008, the City has taken advantage of refundings to save

$3,424,626 in interest, with the possibility of another $300,000 this year

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Is Debt a Four-Letter Word?

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Question: Would the City be better off cash funding infrastructure?

• Cash funding infrastructure places the burden for payment on the current

taxpayers.

• In 2000, the Census reflected a population of 2,404. In 2010, it was 7,295.

Current estimates are closer to 17,000. That equates to a growth rate

of over 700% in the last 20 years.

• If Buda had cash funded projects during that period, a very small

percentage of the current population would have actually paid for the

improvements. The vast majority would have received a free ride.

• Debt funding allows repayment to be extended over the useful life of the

asset so that all taxpayers who benefit help pay for it.

• Debt allows growth to pay for growth.

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Question: Should the City not fund infrastructure at all until it can retire its

existing debt?

• The City could choose to do so, but that would likely prove more costly in

the long run.

• Construction inflation can average between 3-10% per year (depending on

the products.)

• State law does not allow a municipal government to sign a construction

contract unless they have all the funds on hand.

• So unless the City has existing money to pay for the total project, the price

cannot be guaranteed, which makes you subject to cost inflation.

• With bond money, all the funds are received up front by the City and can

be reinvested while the City waits to spend them.

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Question: Should the City be using General Fund balance to pay for capital

projects?

• The city policy is to maintain the General Fund unrestricted fund balance

equivalent to 3.5 months of recurring operating expenditures

• Standard & Poor’s upgraded the City in 2017 to “AA”, citing as support

the City’s “very strong available fund balance.”

• Every improvement in the City’s bond rating equates to a lower interest

rate when you borrow.

• In October 2017, S&P said “We could lower the rating if growth-related

pressures and increasing fixed costs result in weakening budgetary

performance and deteriorating flexibility and liquidity.”

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Buda Debt Comparison to Peer Cities

Buda Average (3) Bastrop Belton Lockhart Seguin TaylorFinancial Statistics

2018 Tax Rate $0.3710 $0.6527 $0.5640 $0.6598 $0.7107 $0.5412 $0.7880

M&O 0.1061 0.4819 0.3691 0.5650 0.6031 0.2763 0.5960

I&S 0.2649 0.1708 0.1949 0.0948 0.1076 0.2649 0.1920

Ratings(1) S&P: AA Fitch: AA‐, S&P: AA S&P: AA‐ S&P: AA‐ S&P: AA Fitch: AA S&P: AA‐

Total General Fund Balance as of 9‐30‐18 (2)

$5,306,887 $6,667,743 $3,577,711 $6,256,112 $5,054,441 $13,003,111 $5,447,340

General Fund as a % of Expenditures 41.72% 47.16% 31.72% 48.63% 52.98% 60.06% 42.39%

Sales Tax as a % of Revenues 60.21% 31.45% 48.49% 24.81% 29.23% 28.19% 26.52%

As of 4‐30‐19 Direct Gross Debt (1)

$102,815,000 $49,340,800 $40,795,000 $34,420,000 $23,330,000 $86,109,000 $62,050,000

As of 4‐30‐19 Direct Gross Debt as % of TAV (1) 6.11% 4.00% 4.03% 3.07% 3.48% 4.05% 5.36%

As of 4‐30‐19 Direct Gross Debt per Capita $6,200 $2,823 $4,454 $1,559 $1,692 $2,758 $3,654

As of 4‐30‐19 Overall Gross Debt (1)

$254,265,859 $113,606,907 $85,750,093 $121,100,128 $63,350,148 $157,174,599 $140,659,567

As of 4‐30‐19 Overall GrossDebt as % of TAV (1)

15.11% 9.66% 8.48% 10.81% 9.45% 7.39% 12.16%

As of 4‐30‐19 Overall Gross Debt per Capita $15,333.85 $6,551.94 $9,362.39 $5,485.10 $4,594.59 $5,034.74 $8,282.86

Demographic Statistics

2018 Population (2)

16,582 18,645 9,159 22,078 13,788 31,218 16,982

2018 Taxable Assessed Value, (1)

$1,682,340,458 $1,217,390,637 $1,011,354,954 $1,120,153,343 $670,718,719 $2,128,018,840 $1,156,707,329

% change in Population from 2009‐2018 (2) 127.31% 14.52% 33.98% 25.60% 5.21% 11.69% ‐3.86%

% change in Taxable Assessed Value from 2009‐2018 (2)

191.53% 58.47% 78.23% 54.99% 44.80% 66.37% 47.94%

(1) Source: Municipal Advisory Council of Texas

(2) Source: City Audits.

(3) Does not include the City of Buda.

Buda Comparison to similar AA Texas Cities

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Cabela’s Tax Increment Refinance Zone (TIRZ)

Cabela’s TIRZ was created in 2004 and encompasses a 126 acre tract ofland along IH 35.

Economic Development Agreement includes City of Buda, Buda EconomicDevelopment Corporation, Hays County, and Dupre Local GovernmentCorporation.– Payments (based on revenues generated within the Zone):

– 56% of City’s Sales and Use Tax (ends 2030)

– 85% of the EDC’s half cent Sales and Use Tax (ends 2030)

– 40% of City’s Hotel Occupancy Tax (ends 2030)

– City and County Property Tax Revenue generated in the Zone above the baseline value(ends 2024)

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Cabela’s Tax Increment Refinance Zone (TIRZ)

Cabela’s TIRZ current value is $127,966,968

That means when the value is taxed in 2025 for the City, it will generate anadditional $338,000 annually for bond repayment (assuming current I&Srate of 26.49 cents)

That payment equates to an additional $5,000,000 in 20-year bonds atcurrent interest rates

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Final Thoughts

As the City grows, you have been able to borrow for additional projectswithout raising the debt portion of the tax rate

With the 2014 bond election, voters were originally given an estimated taxincrease of 14.69 cents (to an I&S rate of 33 cents)

Actual increase was only to 7.83 cents to 26.14

The City has always budgeted conservatively on bond assumptions todeliver below estimates

With the City growing as quickly as it is, it’s important to note that the debtrate is exempt from the rollback calculation

If the Legislature further caps rollback, many cities will move more eligiblespending to the debt rate to free-up M&O monies for essential services

SPECIAL AGENDA

C.3. Presentation of economic outlook and indicators for Austin/Central Texas Region, City of Buda's FY 2018-2019 financial trends, debt service, and budget projections for major funds

(Finance Director June Ellis)

ECONOMIC OUTLOOK AND POPULATION

WHERE ARE WE AND WHERE ARE WE GOING?

• “The old phrase “I wasn't born in Texas, but got here as fast as I could" apparently still holds true. Texas continues to lead the nation in population growth, …” according to iHeartMedia's Corey Olson - April 22, 2019.

• “Austin is once again the fastest growing major metropolitan area in the country. Anyone would be hard-pressed to predict much of a slowdown in the Austin area’s population growth.” Quote from Ryan Robinson the City of Austin’s demographer in an April 2019 article.

ECONOMIC OUTLOOK AND POPULATION

AUSTIN’S POPULATION GROWTH AND PREDICTIONS

• Austin’s population, now the 31st largest in the U.S., is predicted to surpass San Antonio’s by late 2020s.

• Population will continue to grow and outpace infrastructure, generating more demand for schools, transportation, and utilities.

• A new forecast indicates the region’s population will swell 2.6 percent in 2019 compared with 2018 — the highest projected growth rate among Texas’ four major metro areas.

• Job growth will increase but at a slower pace, which will help Austin focus on overgrowth challenges.

• The Austin metro area’s population growth in 2019 will surpass 50,000 for the ninth year in a row. Of those residents, more than 13,000 will be millennials.

POPULATION PROJECTIONS

2010 2020 2030 2040 2050

Austin MSA 1,716,289 2,246,558 2,867,566 3,624,734 4,542,827

Bastrop Co. 74,171 86,103 99,203 112,085 124,818

Caldwell Co. 38,066 44,284 50,774 56,546 62,024

Hays Co. 157,107 234,895 347,056 509,371 743,171

Travis Co. 1,024,266 1,291,415 1,540,376 1,773,152 1,974,018

Williamson Co. 422,679 589,861 860,157 1,173,580 1,638,796

GROWTH RATE 2010-2020 2020-2030 2030-2040 2040-2050

Austin MSA 30.9% 27.6% 26.4% 25.3%

Texas 18.0% 17.6% 16.6% 16.4%

Source: U.S. Census Bureau; Texas State Demographic Center

157,107

234,895

347,056

509,371

743,171

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2010 2020 2030 2040 2050

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PU

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YEAR

HAYS COUNTY ESTIMATED POPULATION

Source: U.S. Census Bureau; Texas State Demographic Center

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POPULATION CHANGE

County 2010 pop. 2018 pop. Percent change

Hays County 157,107 222,631 +41.71%

Comal County 108,472 148,373 +36.78%

Kendall County 33,410 45,641 +36.61%

Fort Bend County 585,375 787,858 +34.59%

Williamson County 422,679 566,719 +34.08%

Montgomery County 455,746 590,925 +29.66%

Denton County 662,614 859,064 +29.65%

Rockwall County 78,337 100,657 +28.49%

Collin County 782,341 1,005,146 +28.48%

Midland County 136,872 172,578 +26.09%

Ten fastest-growing large counties in Texas from 2010 to 2018The state’s suburban counties are home to the most rapid population growth among counties with a population equal to or greater than 20,000.

Source: U.S. Census Bureau

ECONOMIC OUTLOOK AND HOUSING

HAYS COUNTY HOUSING – MARCH 2019• Home sales increased by 10.8% over prior year.

• Only 3.1 months of inventory of single-family homes.

• Buda’s median home price is $259,950.

• In March 2019, Hays County single-family home sales increased 10.8% to 328 sales and sales dollar volume increased 11% to $105,711,500.

• "Because Austin’s economy is thriving and the city continues to remain one of the most popular living destinations in the country, the housing market remains extremely tight," Kevin P. Scanlan, 2019 president of the Austin Board of REALTORS®, said.

• Inventory shortage will hike up prices; new home construction won’t keep up with demand.

• Source: Central Texas Housing Market Report – Austin Board of Realtors

CENTRAL TEXAS ECONOMY CENTRAL TEXAS ECONOMY

Source: Federal Reserve Bank of Dallas – April 2019

CENTRAL TEXAS ECONOMYAustin added 22,700 net new jobs, growth of 2.1%, in the 12 months ending in March, making Austin the 16th fastest growing major metro. Wholesale trade was Austin’s fastest growing industry (8.2%), while professional and business services added the most jobs (6,000 jobs) over the last 12 months. Austin's seasonally adjusted unemployment rate is 2.7%, down from 2.9% in February.

CENTRAL TEXAS ECONOMY

Within the Austin MSA, Travis County has the lowest unemployment rate in March, at 2.6%, while Caldwell County has the highest at 3.4%. The rate is 2.8% in Hays County, 2.9% in Williamson County, and 3.0% in Bastrop County.The national rate is also 3.8% in both March and February.

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AUSTIN ECONOMIC INDICATORS

Austin’s unemployment rate declined from 2.9 percent to 2.7 percent in March, the lowest reading since December 2000. This is well below the Texas and U.S rates of 3.8 percent. The metro’s labor force contracted at an annualized rate of 1.2 percent in March but is up 0.4 percent since December 2018.

AUSTIN ECONOMIC INDICATORS

Austin’s three-month moving average for private sector hourly wages declined for a second consecutive month in March. The metro’s average wage remained above the Texas and U.S. averages. Austin wages increased a slow 0.8 percent year over year, well below the nation’s 3.2 percent and state’s 2 percent increases.

AUSTIN ECONOMIC INDICATORSThe five-month moving average for total Austin housing construction permits (single family and multifamily) increased 12.7 percent month over month in March. This was well above the state’s 2.6 percent increase in construction permits. For 2018, permits in Austin increased 11.1 percent. The average number of permits issued per month in the first quarter of 2019 was 9.2 percent lower than the average issued per month in 2018.

CITY OF BUDA

BUDGET TRENDS AND PROJECTIONS

REVENUE TRENDS AND PROJECTIONS

Total General Fund

Total 16‐17

Total 17‐18

2018‐2019 Current Budget

17‐18 YTD as of 3/31

18‐19 YTD as of 3/31 YTD Change

FY 18‐19 Projection

$11,514,433 $12,668,461 $13,033,088 $6,720,969 $7,804,862 16.2% $13,605,312

18‐19 Projection includes higher sales tax revenue than budget – approx. $280K; also includes $153K in Tree Mitigation Fee revenue not originally budgeted; 4.4% increase from current budget to FY 18‐19 Projection

Sales Tax ‐ City's Portion

$3,961,615 $4,508,903 $4,553,855 $2,118,954 $2,318,605 9.5% $4,738,000

3‐Year actual average including projection $4.4M; 5.1% increase from FY 17‐18 actual to FY 18‐19 Projection

Property Tax O&M

$1,710,789 $1,663,130 $1,754,091 $1,643,275 $1,753,854 6.8% $1,793,854

3‐Year actual average including projection $1.7M; 7.9% increase from FY 17‐18 actual to FY 18‐19 Projection

REVENUES

REVENUE TRENDS AND PROJECTIONS

Water Fund

Total 16‐17

Total 17‐18


17‐18 YTD as of 3/31



$3,070,370 $3,333,716 $3,868,174 $1,382,695 $1,326,743 ‐4.1% $3,594,885Water User Charges approx. 6.2% lower than last year through 7 months; 3‐Year actual average including projection $3.3M;

7.9% increase from FY 17‐18 actual to FY 18‐19 projection

Wastewater Fund

$4,617,110 $4,555,790 $4,430,583 $2,239,691 $2,357,381 5.3% $4,769,610Wastewater User Charges approx. 7.9% higher than last year for the fiscal year; 3‐Year actual average including projection

totals $4.6M; 7.9%, or approx. $339K, increase from FY17‐18 budget to FY 18‐19 projection

Transfers From Water/Wastewater Fund

$612,261 $648,917 $684,460 $302,924 $342,230 13.0% $669,160

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EXPENSE TRENDS AND PROJECTIONS

General Fund

Total 16‐17

Total 17‐18


17‐18 YTD as of 3/31



$10,231,452 $12,728,559 $13,457,821 $5,812,400 $6,556,902 12.8% $13,438,284

49% of budget spent; 3‐Year actual average including projection $12.1M

Water Fund

$3,037,464 $3,005,945 $4,261,429 $1,339,923 $1,573,431 17.5% $4,186,640

37% of budget spent; Higher budget and expenditures due to AMI water meter infrastructure & meter replacement financing and funding via reimbursement resolution to fund City Park & Garlic Creek Trails

Wastewater Fund

$3,462,484 $4,368,621 $7,364,031 $1,928,925 $3,008,978 56.0% $7,420,115

41% of budget spent; higher budget and expenditures due to capital projects from prior fiscal year; wastewater portion for water meter replacement and reimbursement resolution to fund City Park & Garlic Creek Trails

EXPENSES

FY 2018 ENDING FUND BALANCE

AUDITED FUND BALANCE - FY 2018

Year-End Comparisons and Reserve Requirements for Major Funds

Fund 100 Fund 500 Fund 600 Fund 525 Fund 625 Fund 300 Fund 475

General Water Wastewater Water Capital WW Capital Sanitation Hotel/MotelFY18 Projected Ending $4,542,842 $2,744,164 $5,739,409 $2,171,285 $1,238,882 $226,227 $1,293,776 FY18 Actual Ending $5,306,887 $3,125,882 $6,691,504 $4,523,135 $29,556,464 $248,210 $1,429,057 Amt. Over/(Under) Budget $764,045 $381,718 $952,095 $2,351,850 $28,317,582 $21,983 $135,281

Carryover budget amendment and capital projects to FY19 ($118,272) ($29,945) ($749,868) ($1,787,025) ($28,003,672) $0 $0

Ending Available Over/(Under)Budget $645,773 $351,773 $202,227 $564,825 $313,910 $21,983 $135,281

Reserve Requirement $3,710,266 $963,542 $756,921

Amount Over Requirement $1,596,621 $2,162,340 $5,934,583

WATER AND WW UTILITY RATES AND INCREASES

Increased water rates by 2% and wastewater rates by 3% in FY 2019.

With these rate increases and the projected future expenditures, the balance of both funds would remain above a 3-month reserve.

PROPERTY VALUES

2018 Certified 2019 Preliminary

Total Taxable $1,653,242,992 $1,840,667,027 City $1,550,571,319 $1,712,700,059 TIRZ $102,671,673 $127,966,968

Total Change:Total Taxable 11.4% increase; $187MCity 10.5% increase; $162MTIRZ 24.7% increase; $ 25M

QUESTIONS OR COMMENTS

SPECIAL AGENDA

C.4. Presentation and discussion on growth trends, demographics, and projections

(Assistant City Manager Lauren Middleton-Pratt)

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SPECIAL AGENDA

C.5. Discussion on City Council Vision, Mission, Goals, and Objectives for FY 2019-2020 (City Manager Kenneth Williams)• Transportation (City Engineer John Nett)• Fiscal Responsibility (Jennifer Ritter of Specialized Public

Finance, Inc.)• Regional Draw (Tourism Director Lysa Gonzales, Assistant

City Manager Micah Grau, & Parks & Recreation Greg Olmer)

T R A N S P O R T A T I O N & M O B I L I T Y M A S T E R P L A N N I N G

P R E S E N T A T I O N

T R A N S P O R T A T I O N & M O B I L I T Y M A S T E R P L A N N I N G

P R E S E N T A T I O N

C I T Y O F B U D AC I T Y O F B U D A

MA Y 1 4 , 2 0 1 9 S P E C I A L C I T Y C O U N C I L M E E T I N G M A Y 1 4 , 2 0 1 9 S P E C I A L C I T Y C O U N C I L M E E T I N G

T R A N S P O R T A T I O N & MO B I L I T Y M A S T E R P L A N

RFQ ReleaseResponses to RFQ receivedRFQ responses reviewed and scoredShortlist interviews conductedFinalist selectionProject Scope and Fee negotiationRecommendation of RFQ and PSA awardContract executed with KFAProject kickoff meetingData needs assessmentPolicy reviewStakeholder & public engagementFinal report

December 5, 2018 January 10, 2019January 24, 2019

February 12, 2019February 22, 2019

March 4, 2019March 26, 2019April 18, 2019May 10, 2019

May 2019June‐August 2019

July 2019‐March 2020April 2020

P RO J E C T S CH EDU L E

T R A N S P O R T A T I O N & MO B I L I T Y M A S T E R P L A NPRO J E C T S COP E O F S E R V I C E S

Staff prepared a proposed Project scope of anticipated work to be required for the transportation and mobility master planning.

The following major Project tasks are described in detail in the RFQ:

• Existing Condition Inventory and Gap Analysis• Complete Street Analysis• Public Participation Program Implementation• Future Transportation Trends Analysis• Reporting• Possible Additional Related Services

‒ Traffic impact analysis of specific road segments or intersections‒ Targeted thoroughfare corridor studies‒ Detailed costing & financing proposals for selected capital improvement projects‒ Grants, loans, & assistance in obtaining financing for transportation systems

T R A N S P O R T A T I O N & MO B I L I T Y M A S T E R P L A NPRO J E C T P A R T I C I P A T I ON

Public Participation Program

• Public meetings & community events• One‐on‐one & focus group meetings (Buda Farmer’s Market;

Downtown Merchants Pop‐up Event; Buda Library)• Interactive online GIS tools• Social media and online polls• Stakeholder engagement (HaysCISD; ESD; Hays Co.; Travis Co.;

TxDOT; CAMPO; neighboring cities)

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TRAN S P O R T A T I O N & MO B I L I T Y M A S T E R P L A NPRO J E C T R E POR T

Transportation & Mobility Master Plan Report

• Introduction and Statement of Purpose – goals and objectives

• Overview of the Public Involvement Process – summary of findings

• Summary of Existing Conditions – transportation system performance statistics

• Evaluation of Future Conditions – growth patterns and traffic demands

• Scenario Analysis – system deficiencies, qualitative performance measures, and

build‐out conditions

• Thoroughfare Plan – street network map by functional classifications

• Mobility Recommendations – enhanced collector network, intersection

improvements, multi‐modal facilities, TDM strategies, refined polices, etc.

• Capital Improvements Plan – prioritized projects list with costs estimates

• Conclusion and Statement of Recommendations – success strategies

T R A N S P O R T A T I O N & MO B I L I T Y M A S T E R P L A NPRO J E C T DA TA

Planning documents and other data that will be referenced and reviewed for this project include:

• 2018 Buda Roadway Impact Fee Study• 2012 Buda Transportation Master Plan• 2040 CAMPO Regional Transportation Plan• 2040 TxDOT Texas Transportation Plan• Hays County Transportation Plan• Travis County Transportation Plan• City of Austin Strategic Mobility Plan• City of Kyle Transportation Master Plan• CAMPO Regional Travel Demand Model

T R A N S P O R T A T I O N & MO B I L I T Y M A S T E R P L A N201 8 BUDA ROADWAY IMPAC T F E E S TUDY

2018 Buda Roadway Impact Fee Study:This is a draft study. The purpose of this report is to summarize the methodology used in the development and calculation of roadway impact fees for the City of Buda. The methodology used herein satisfies the requirements of the Texas Local Government Code Section 395 for the establishment of impact fees.

T R A N S P O R T A T I O N & MO B I L I T Y M A S T E R P L A N201 2 BUDA T R ANS POR TA T ION MAS T E R P L AN

City of Buda Transportation Master Plan:The Transportation Master Plan (TMP) is the City’s document guiding how long range transportation needs are to be met for all modes of travel. It includes both facility and policy recommendations, andacknowledges the assumed condition of surrounding transportation infrastructure based upon adopted, related plans and dialogue with local and state officials.

T R A N S P O R T A T I O N & MO B I L I T Y M A S T E R P L A N2040 C AMPO R EG IONA L T RANSPORTA T ION P L AN

CAMPO 2040 Plan Vision:Develop a comprehensive, multimodal, regional transportation system that safely and efficiently addresses mobility needs over time, is economically viable, cost‐effective and environmentallysustainable, supports regional quality of life, and promotes travel options.

T R A N S P O R T A T I O N & MO B I L I T Y M A S T E R P L A N204 0 T XDOT T E XA S T R ANS POR TA T ION P L AN

Texas Transportation Plan 2040:The Texas Transportation Plan (TTP) 2040 documents the existing infrastructure and funding needs for all passenger and freight modes in the state over a 25‐year horizon. As the state’s first performance‐based long‐range transportation plan, the TTP provides a path forward to align transportation investment decisions with performance outcomes to address passenger and freight needs and demands amid unprecedented growth and declining revenues.

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TRAN S P O R T A T I O N & MO B I L I T Y M A S T E R P L A NHAY S COUNT Y T R ANS POR TA T ION P L AN

Hays County Transportation Plan:The purpose of the Hays County Transportation Plan (HCTP) is to identify current and futuretransportation needs in the County and identify how best to address them. Through an open and transparent process that provides various ways for the public to stay involved and provide input, the HCTP is seeking to develop a long‐range plan that will:• Set an overall direction for transportation future

of the County;• Accommodate future growth while maintaining

and improving access to destinations for the traveling public (e.g., work, school, shopping, residential);

• Address current transportation needs by identifying specific projects; and,

• Address future need by providing the information and tools needed to preserve right‐of‐way needed for future projects.

T R A N S P O R T A T I O N & MO B I L I T Y M A S T E R P L A NTRAV I S COUNT Y T R ANS POR TA T ION B LU E PR I N T

Travis County Transportation Blueprint:The Travis County Transportation Blueprint (TCTB) is Travis County’s first comprehensive, countywide transportation planning document. It complements the planning work of other jurisdictions and agencies that contribute to our transportation system, while focusing on county‐specific concerns. The TCTB is a fiscally constrained plan that defines priorities through 2045. It will be updated every five years and may be amended by the Commissioners Court as needed.

T R A N S P O R T A T I O N & MO B I L I T Y M A S T E R P L A NC I T Y O F AU S T I N S T R A T EG I C MOB I L I T Y P L AN

Austin Strategic Mobility Plan:The Austin Strategic Mobility Plan (ASMP) is the City’s new transportation plan. It guides transportation policies, programs, projects, and investments for the next 20+ years. The ASMP covers all the ways we get around Austin. This includes: driving, walking, bicycling, and taking public transportation like buses and trains.

T R A N S P O R T A T I O N & MO B I L I T Y M A S T E R P L A NC I T Y O F K Y L E T R ANS POR TA T ION P L AN

City of Kyle Transportation Master Plan:This Transportation Master Plan (TMP) examines the current transportation system and the impacts of Kyle’s growth on that system. It will determine the necessary improvements to the network, and a corresponding implementation plan through study year 2045.

Project Approach proven approach Facilitating Conversation

Talk

METHODSSingle point of contact ‐

Regular staff updates ‐

Council briefings ‐

1Goal is to understand

your plan goals

Maximizing Existing Plans & Resources

Funding Opportunities

Local Concerns

Regional Presence

Inter‐Agency Coordination

2

3

Partnering with City Officials + Staff

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proven approach Facilitating Conversation

Talk

METHODSPublic meetings ‐

Community events ‐

One‐on‐one & focus groups ‐

Online engagement & surveys ‐

Ongoing updates –(e‐mail, news releases, social media) .

1 Inclusive

Bilingual and Multicultural

Convenient Engagement

Innovative Outreach

Identify Needs, Priorities, Thresholds

2

3

Partnering with Community Members

proven approach Facilitating Conversation

Talk

1 Leverage Local Knowledge & Experience

Integrated Team

Leadership

2

3

Partnering with Project Team Members

proven approach Turning Challenge into Choice

Target

1 Population Growth

Traffic Counts Crash and Safety Data

CAMPO Plan / Forecast Conditions

Existing Plans and Programs

Demographics Existing Hot Spots

Proposed Developments Commuting Patterns

2

3

Inventoryof available resources

Buda’s Population Growth

(Source: worldpopulationreview.com) .


Target

METHODOLOGYHelping to steer Buda’s future by preparing for growth as opposed to

reacting to it.

1 Increased Uncertainty

Character of Growth

Location of Growth

Technology and Tools

Outside Forces

Jobs and Housing Balance

2

3

Forecasting using critical thinking and experience


Target

METHODOLOGYAnalysis will not just focus on new roads and capacity, we will also

look at the role that all modes play and how technology such as dynamic signals may help.

1Identifying Current and future Needs

Enhancing Capacity

Low‐cost Systemic Safety Improvements

Prioritization

Identify Funding Options

Optimize Network throughTechnology and Policy

2

3

AnalysisAvailable Resources

FeedbackMapping exercise

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TRAN S P O R T A T I O N & MO B I L I T Y M A S T E R P L A NC I T Y COUNC I L MAP E X ER C I S E

This is your opportunity to participate in a mapping exercise

Questions for you to consider:• What are the challenges to achieving desired mobility?• What are your goals for mobility enhancement for Buda?• What are your ideas for maximizing existing resources?

THANK YOU FOR PA R T I C I P A T I NG !

M E E T I N G T H E N E E D S O F T H E C I T I Z E N S

Regional DrawFY 2020 Budget Workshop

DISCUSSION TOPICS

• Community Festivals and Special Events

• City Park programming

• Sportsplex

• Garrison Park

• Stagecoach House Future Plans

• Parks Master Plan

• Resort / Convention Center

REGIONAL DRAW – CITY EVENTS

City Events• Buda’s Birthday Bash: Multiday/multi-venue

• Time frame – early April

• Type of event – vendors, music, other performances and activities

• Purpose – showcase the park and other Buda venues

• Approach – phasing or all at once

• Budget

• Red, White and Buda

• Budafest

• Expand activities/offerings to both Downtown and Buda City Park

REGIONAL DRAW - PARTNERSHIPS

HOT grants

• Currently used by non-profits, but for-profit has used the grant in the past

• Mainly used for marketing expenses

• Requirements – multiday, must put heads in beds (number not specified)

Event Incentives (NEW) – could be used on other allowable uses of HOT funds

• Attract multiday events through production company/for-profit businesses

• Performance measures or other agreements?

• Incentives matrix

Other Items to consider

• Alcohol

• Fencing

Feedback

• HOT grant vs. incentive

• Budget

REGIONAL DRAW - MARKETING/OUTREACH

Goal: capture more events to utilize Buda City Park

1. Materials –

- Print and digital materials, i.e. brochure, website, video, etc.

- Showcases the new park, its amenities, and key logistical information

2. Research –

- Research local, regional, and beyond that put on events, activities, and performances ideal for the park and our target audience

3. Outreach –

- Meet with interested parties

- Invite companies to tour the facilities

- Host VIP areas or grant all access during events for interested parties

4. Promote –

- The completion to media outlets

- Invite media for tour

- Promote all events to media outlets

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REGIONAL DRAW - TOURNAMENT INCENTIVES

HOT funds for Sportsplex

• HOT funds used for Capital Improvements must earn hotel revenue directly related to the Sportsplex

• Tracking system

Tournament Recruitment

• Bid through organizations

• Work with local organizations

• Seek fringe sports

Incentives

• Bids for medium-large tournaments

• Incentive packages for small tournaments

Feedback

• Budget and tournament type

CITY PARK PROGRAMMING

Seasonal Events• Jan. Martin Luther King Service Day• Feb. Valentine’s Day Dance/Concert• March-St. Patrick’s Day Event, Yoga in the Park• May-July Summer Concert Series, Cinco de Mayo

Special Events• April-Easter Egg Hunt and Festival, Weiner Dog Races• May-End of School Field Trip/Performances• June/July Movies in the Park Series• July Red, White, and Buda Event• August-Back to School Bash• October-Booda Halloween• Nov. Turkey Trot 5K race, VFW Parade• Dec. Budafest

Partnerships/Feedback• Rental Options for Large Pavilion-Fajita Fiesta, Camp Gladiator, etc.• RFP for Large Concert Events?

Future ConsiderationOutdoor-based Summer Camp programming

CITY PARK OPERATIONS

New Staff Added (2)

• Domingo Pompa and Isaiah Rangel.

• Daily maintenance of park and assistance for all special events.

Amenities: (Consultant Estimates)

• Splash pad (chemical estimate: $5,000)

Item Cost

Maintenance Supplies-Restrooms/Playgrounds

$6,730

Splash Pad Supplies/Electric

$8,000 (Warranty Item)

Total: $14,730

FY 20 Total: (6 months) $7,365

BUDA SPORTSPLEX

SITE MASTER PLAN

• Accommodate parking needs due to increased demand for usage.• Invest additional funding into turf management-Buda EDC ceases funding in

FY20.• Improve seating areas (bleachers, team benches, and Trash receptacles.)• Partner with YMCA and other regional clubs to host tournaments due to new

sports lighting installation. Seek out indoor venues to partner with-SunfieldStation, YMCA etc.

• Large demand for soccer fields by current and new clubs:• Current Users:

• YMCA• Real Armadillo Soccer Club• Lonestar Soccer Club• Liverpool FC International Academy

• New Requests:• FC Westlake• Central Texas Lobos• Austin Men’s Soccer Association

BUDA SPORTSPLEX

Expansion of 2 full size soccer fields.

• Would accommodate existing user groups and tournaments.

• Allow for existing fields (#1-#4) to be rested.

• Irrigation added including dog park.

• Temporary lights to be used-donation through Liverpool FC.

• Allow for new revenue sources with additional usage.

GARISON PARK

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GARISON PARK

• Activity Centers

• Nature Center

• Swimming Hole

• Wetlands

• CIP

• FY20: $400,000 for design services (debt?)

• FY21: $3,500,000 for construction – est. (debt)

GARISON PARK

• Interim / Limited Access

• Limit access to Onion Creek via natural trail from City Park

• Hiking

• Fishing

• Canoeing / Kayaking

• Build excitement about the park

• Patrons would use City Park restrooms and Parking facilities

• Costs

• Utilize volunteers to clear trails

• Work with groups to provide guided hikes

• Trail markers and signage

• City programs: nature walks, bird watching, canoe / kayak classes

• Pet Wastestation / Trash Receptacle at Trail Head

Image:Jacob’s Well Natural AreaHayscountytx.com

STAGECOACH HOUSE

• 1,647 square feet

• Convert to

• Event venue

• Museum display space

• Programming space

PARKS MASTER PLAN 2012

• Adopted in 2012

• Majority of master plan goals completed or underway.

• Parks Commission support for new plan development.

• Trails incorporated into Transportation Master Plan.

• CIP FY 2020 Proposal.

ADJOURNMENT

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MEMORANDUM TO: The Honorable Mayor and City Council

FROM: Chance Sparks, Assistant City Manager

THROUGH: Kenneth Williams, City Manager

Date: July 27, 2017

Re: Annexation of Sunfield Municipal Utility District

_____________________________________________________________________________________

The City Council requested information regarding annexation of portions of the Sunfield Municipal Utility District (MUD). In response, this memo provides some relevant general background on MUDs, Sunfield agreement background, descriptions of Buda’s annexation authority in each of Sunfield’s four MUDs, and concluding implications of Buda annexing one of the MUDs.

Municipal Utility District Background A Municipal Utility District (MUD) is one of several types of special districts that function as independent, limited governments. The purpose of a MUD is to provide a developer an alternate way to finance infrastructure, such as water, sewer, drainage, and road facilities. Managed by a Board elected by property owners within the MUD, a MUD may issue bonds to reimburse a developer for authorized improvements and the MUD will utilize property tax revenues and user fees received from water and sewer services operated by the MUD to repay the debt. As the MUD pays off its debt, more of its tax revenue can be directed to other services. Originally, MUDs were very limited in what they were allowed to finance and what services they could provide. Over time, MUDs began taking on more responsibilities and providing enhanced services for the residents, such as parks and recreation, deed restriction enforcement, and solid waste service. This can present a challenge for cities annexing MUDs, as municipal annexation service plans require provision of equivalent services. MUDs rely on the County to provide police and road maintenance services and Emergency Service Districts (ESDs) for provided fire protection and EMS.

Texas law requires that MUDs be annexed in their entirety; a City cannot annex just a portion. If the City annexes a MUD before its bonds are paid in full, the City must assume the balance of MUD debt and reimburse the developer for any un-bonded facilities. The developer of a MUD who is prevented from being reimbursed through bonds issued by the District must be paid by the annexing city all the actual costs and expenses incurred in connection with developing the district that are eligible for reimbursement from bond proceeds under the rules of the TCEQ.

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Some cities pay a portion of this debt by enacting post-annexation surcharges to property owners formerly part of a MUD as provided for by state law. This is a charge on a homeowner’s utility bill and is calculated based on the amount of debt that the City absorbs at the time of annexation. If full purpose annexation is deferred until the MUD bonds are paid in full, this development would be excluded from the City’s tax base for that period of time, reasonably decades.

Relevant Sunfield Agreement Background Restrictions on the City’s ability to annex the property within Sunfield MUD No. 1 go back to May 2003, when the City consented to the creation of Winfield MUD No. 1. That agreement designated Winfield District No. 2 as the “master district” that would be responsible for coordinating the provision of water, sewer, drainage, and other services and facilities to itself and Districts 1, 3 and 4. Ultimately, MUD No. 4 was actually designated as the Master District. In the consent agreement, the City agrees not to annex District No. 1 prior to the installation of 90% “of the facilities for which District 1, or District 2 as the master district for Districts 1, 2, 3 and 4, has the right to install or cause to be installed under this Agreement.”

Two years after the consent to the creation of District No. 1, the City entered into an interlocal agreement with the City of Austin exchanging portions of each city’s ETJ. This Agreement essentially brought MUD’s 3 and 4 within Buda’s ETJ and moved MUD No. 2 into Austin’s ETJ.

In September 2006, the City entered into a Strategic Partnership Agreement between the City of Buda and Sunfield MUD No. 1. That agreement clarified the annexation provisions initially set out in the consent agreement from 2003. It established a “Conversion Date” which provided that conversion to full purpose annexation could occur no sooner than the earlier of the following dates: (1) 30 years after the effective date of the SPA (October 3, 2036); or (2) upon the issuance of bonds necessary for 90% of the utility infrastructure necessary for the District (such determination is not to be based on the bonds authorized, but rather on the bonds necessary to provide facilities for the development of all land within the District). If the City wishes to convert to full purpose annexation, but the parties cannot agree on the determination of the conversion date, they will submit the matter to binding arbitration; the City would need to notify the District of its belief that the 90% threshold has been met. The agreement also specifies that upon conversion to full purpose annexation, the City assumes all obligations, liabilities, indebtedness and assets of the District, as provided by law.

Also in September 2006, the City entered into an “Economic Development Agreement between the City of Buda and 2428 Partners” which incorporated the terms of the Strategic Partnership Agreement into the Economic Development Agreement.

In November 2006, the City entered into a development agreement with the Shops at Sunfield. The property subject to this agreement is wholly within Sunfield MUD No. 1; the agreement provides that the property subject to the agreements shall not be subject to full purpose annexation during the term of the agreement until the conversion date established in the Strategic Partnership Agreement.

Authority to Annex in Each Sunfield MUD A map of the respective MUD boundaries is provided below.

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Sunfield MUD No. 1. As discussed above, the City has contractually limited its ability to annex MUD No. 1. The City must wait until issuance of 90% of the bonds necessary to construct the district’s facilities, or September 2036, whichever is sooner.

Sunfield MUD No. 2. Because MUD No. 2 is now within the City of Austin’s ETJ, it cannot be annexed by the City of Buda.

Sunfield MUD No. 3. Because MUD No. 3 is not contiguous to the city limits, the City is not able to unilaterally annex the district at this time. Should the City limits become contiguous to the District, then the City may annex the District, but the City would assume all of the District’s debts, liabilities, and obligations pursuant to Local Government Code Section 43.075.

Sunfield MUD No. 4. Because MUD No. 4 is not contiguous to the city limits, the City is not able to unilaterally annex the district at this time. Should the City limits become contiguous to the District, then the City may annex the District, but the City would assume all of the District’s debts, liabilities and obligations pursuant to Local Government Code Section 43.075. Annexation of MUD No. 4 would also result in the City assuming all obligations to purchase water from the GBRA pursuant to existing raw water contracts between 2428 Partners and GBRA. Under the existing “Contract for Raw Water Service,” which expires in 2050, the City would be obligated to pay for an annual commitment of up to 3,136 acre-feet per year; however, the contract provides the water purchaser with the right to terminate the agreement upon 30 days notice. Under the “water delivery” contract between the GBRA and 2428 Partners, which also runs through the end of 2050, the City may become obligated to pay monthly fees designed to reimburse the GBRA for the design, construction, maintenance and operation of the raw water delivery system. The water delivery contract also includes an obligation to pay for a pro rata share of debt service coverage. The agreement also contractually fixes water rates at an amount sufficient to make prompt payment of all the contractual payments contained.

Annexation of MUD no. 4 would also include the obligations set forth in the existing wastewater operating agreement between 2428 Partners, Sunfield MUD No. 4 and the GBRA. This would include any debt associated with the wastewater treatment plant located in MUD No. 4.

Concluding Implications of Annexing Sunfield MUD Following conversion to full purpose annexation and dissolution of the District, all of the obligations, liabilities, indebtedness, and assets of the District, including but not limited to the District’s Bonds, shall be assumed by the City. Given that the MUD tax rate is $0.9000 and Buda’s tax rate is $0.3704, it is likely Buda would need to substantially increase the City’s I&S tax rate to absorb the indebtedness. Likewise, Buda would need to increase M&O funds to properly maintain the additional assets. In addition, certain contractual circumstances require satisfaction. In particular, staff would need to carefully assess whether the 90% bond-issuance threshold has been achieved. Satisfaction of the 90% threshold appears unlikely given the large amount of undeveloped commercial property around U.S. Foods, which would require significant MUD bond-supported infrastructure to develop. Likewise, staff would need to determine whether the language of the Sunfield Agreement exempts the requirement for a 3-year annexation plan and constitutes voluntary consent to annexation, as it involves more than 100 occupied parcels.

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2018

Mayor & City Manager

Mission – Vision – Goals

Mission: To provide an excellent quality of life for everyone - today and in the future

Vision: As Mayor and City Manager we would like to be the best city in the world that feels like home whether you are from Buda or a visitor. We want to be a destination city that is people friendly which provides educational, entertainment and economic opportunities for all.

Goals:

1. Make Buda feel like home as a quality place to be born, live, work, play and retire.

2. Have adequate infrastructure of roads, parks, and a variety of housing with water resources needed to sustain growth.

3. Offer full range of medical facilities. 4. Provide a city that is financially stable and fiscally responsible with

a low tax rate for its citizens. 5. Education – Interaction with HCISD, ACC and Texas State to

enhance technical and academic opportunities. 6. To be the best managed and governed city in the world. 7. Positive economic development taking into account industrial,

commercial and retail, as people may have opportunities for quality jobs, dining, shopping, and entertainment in Buda.

8. Maintain a safe city with one of the lowest crime rates in the country.

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9. Historic preservation of downtown and maintain the city’s small town charm.

10. Adequate transportation with pedestrian trails, well planned streets, and mass transportation options.

11. Enhance partnerships with other political entities, nonprofits and the private sector.

12. Complete bond projects. 13. Adequate planning and then execute those plans in the future.

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CITY COUNCIL MINUTE RECORD Page 637 The City of Buda, Texas Volume 138 Tuesday, March 25, 2019

CALL TO ORDER

Mayor Haehn called the meeting to order at 4:13 p.m.

ROLL CALL

City Clerk Alicia Ramirez certified a quorum with the following Council Members present:

Mayor George Haehn Mayor Pro Tem (SMD C) Wiley Hopkins Councilmember, Position 1 Lee Urbanovsky

Councilmember, Position 3 Ray Bryant Councilmember, SMD A Paul Daugereau

Councilmember, SMD B Evan Ture

City Manager Kenneth Williams

Councilmember, Position 2 Remy Fallon was absent and excused from the meeting. City Staff in attendance: Assistant City Manager/Administration Micah Grau, City Clerk Alicia Ramirez, and Lauren Middleton-Pratt

COUNCIL RETREAT

DISCUSSION AND PARTICIPATE HELD ON THE CITY OF BUDA FISCAL YEAR 2019-2020 STRATEGIC PLANNING LEADERSHIP SESSION, TOPICS DISCUSSED MAY OR MAY NOT INCLUDE OR BE LIMITED TO: GROWTH, QUALITY OF LIFE, ECONOMIC DEVELOPMENT POLICIES, TRANSPORTATION, COMMUNITY PARTNERS, OUTREACH, FUTURE INFRASTRUCTURE AND FACILITY NEEDS, BEAUTIFICATION AND COMMUNITY ENHANCEMENT, ENHANCEMENT OF CORE SERVICES INCLUDING PERSONNEL NEEDS, FLOOD MITIGATION STRATEGIES, AS TO ASSIST FUTURE BUDGETING EFFORTS

Mike Conduff, Facilitator with Elim Group Consulting Firm, facilitated the retreat.

Council identified unique characteristics and possible goals to accomplish by 2020/21:

Unique characteristics of Buda

• Original Little Big Town • Fast Growing • People want to visit Buda • Safe • Quality of Live • Amenities • Natural Beauty • Great Staff • Beautiful Small-Town Charm People • People, faithful present, fields • Small Town feel, Quality of Life, Schools, Charm

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Minutes Volume 138 March 25, 2019 Future Improvements

• Parks property • Youth activities • Parks Projects and Programming • Infrastructure • Educate Citizens • Open Natural Space • Hospital • Infrastructure, Garison Park, Focal Point • Pay off Debt • Infrastructure improvements

After several exercises, the Council identified three key areas:

Councilmember Fallon arrived at the meeting at 7:30 p.m.

Transportation

Completion of the Robert S. Light (RSL) Bypass – establish a plan to accomplish these goals due to growing traffic patterns

• Concern that once SH45/Mopac is complete, need to consider and redirect traffic to RSL instead of FM 967 or Main Street

o Suggest building a bridge over Onion Creek o The County has plans, but limited funding dedicated to project o Completion of the FM 1626 Intersection o Suggest and obtain funding from various sources TxDOT, CAMPO, etc.

• Identify and establish Buda’s plan to collaborate with Hays County representatives

Fiscal Responsibility

• Consider Hotel Occupancy Tax Revenue and how such may be used to fund a convention center for a three- to six-month period

• Manage debt o Consider ways on how to use debt o Consider long term vs. future debt

• Revenue projections and effects on debt • Identify characteristics of existing debt

o Explanation of the bond debt • Financing debt – interest and tax rate • Construction projects • Identify good vs. bad debt • Establish a strong recession proof tax base

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Minutes Page 639 March 25, 2019 Volume 138

Regional Draw

• With the completed of City Park and the Amphitheater, concentrate on having an annual festival, e.g. Buda birthday party

o Establish an ad-hoc committee to work with local music groups/representatives o Annually, formally recognize a Buda Citizen – historical figure

The facilitator suggested the Council consider the various identified area and organize these groups into planning their priorities for the next three years.

Update Existing Plans

• Transportation Master Plan • Parks Master Plan • Capital Improvement Plan

The Council identified areas not addressed during the retreat exercises:

Council Member Urbanovsky:

• In line with transportation, a Road Survey & Pavement Condition Index • Creative ideas for Garison Park - Connect with existing City Park

o Consider private/public partnership • Investment in current facilities • Bridge at Onion Creek

Councilmember Ture:

Framework vs. Direct Attraction: With all the projects identified, the City should establish a framework on how these things come to Buda. Although some project may be incentivized through the Economic Development Corporation, there are other areas that could be included in the framework.

Innovative Perspectives to Infrastructure Improvements: Transportation, Multi-modal, and Walkability

Mr. Williams inquired on the Council’s thoughts of a Conference/Convention Center and whether to utilize staff resources. The Council made the following points:

• Nice to have but not critical • Location Location Location • Perhaps some reasonable incentives • Review the 2017 EDC study that identified and prioritized potential sites • Not a box building surrounded by concrete

o Consider a project similar to Hyatt Hill Country o An all-inclusive hotel

• Connectivity to surrounding amenities, walking trails, etc.

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Minutes Volume 138 March 25, 2019 Upon consensus, the Council agreed to further revisit the concept. Mr. Williams stated a copy of the study will be provided.

Councilmember Fallon:

• Sports and Recreation • Partnership with the YMCA • City Sponsorships or set up the framework

Councilmember Daugereau:

• Hike and bike trail along Old Black Colony developments connecting from Summer Pointe, Whispering Hollow, Garlic Creek, and other neighborhoods and eventually to City Park

o Consider the Safe Routes to School grant

ADJOURNMENT

Motion, to adjourn the meeting, was made by and seconded by. Motion carried unanimously.

There being no further business, the meeting was adjourned at 9:04 p.m.

THE CITY OF BUDA, TEXAS ___________________________ George Haehn, Mayor ATTEST: _______________________________ Alicia Ramirez, TRMC DATE City Clerk

In accordance with Article III, Section 3.10, of the Official Code of the City of Buda, the minutes of this meeting consist of the preceding Minute Record and the Supplemental Minute Record. Details on Council meetings may be obtained from the City Clerk’s Office, or audio or video of the entire meeting may be downloaded from the website. (Portions of the Supplemental Minute Record audio or videotape recording may be distorted due to equipment malfunction or other uncontrollable factors.)

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