8' COMMISSIONERS' COURT AGENDA REQUEST /a 1 a US) ~' PLEASE FURNISH ONE ORIGINAL AND TEN COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: Dave Nicholson MEETING DATE: December 12, 2005 OFFICE: Commissioner, Pct. 4 TIME PREFERRED: SUBJECT: Consider, discuss and take appropriate action to address the $94,001.00 Library fund balance that was paid to Kerr County by October 15, 2004. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Commissioner, Pct. 4 ESTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: 5:00 P.M. previous Tuesday. All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and contribute towazds your request being addressed at the eazliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. THE CITY Of KERRVILLE, TEXAS io November 10, 2005 Judge Pat Tinley The County Court of Kerr County 700 Main Hwy. Kerrville, Texas 78028 Dear Judge Tinley, I am responding to your original request for information dated October 7, 2005. Attached is a copy of a memo dated August 25, 2004. This memo references the return of equity. It states that a check would be sent to the County; however, a check was never issued in lieu of the County netting their contribution. As to how this application was to occur, there is no specific documentation. I apologize for the lateness of this response. If you still need additional information, please feel free to call me direct (830) 792-8301. Sincerely, 1~ M. Brooks Interim Assistant to the City Manager/CFO 800 JUNCTION HIGHWAY •KERRVILLE, TEXAS 78028-5069 • 830/257-8000 Memorandum Date: August 25, 2004 To: County Judge and Commissioners Court CC: Mayor and City Council From: Ron Patterson, City Manager Subject: FY05 Budget Figures Below you will find a summary of the budget data related to the programs in which the City and County participate ("Joint Programs") as well as programs under which the City provides services to the County ("Contracted Services") and reflects costing for such contracted services as reviewed by the City Council. Included with this summary is a detailed line item budget for the Joint Programs. Joint Programs Data Airport - As you are aware the City and County entered into agreements for the operation of the Airport Board as well as a general management contract. Under the management contract there is a total cost of $214,329 to be split by the City and the County, which totals $107,164.50 each. Please reference the previously agreed to documentation on this matter that was approved buy the City/County committee that developed this agreement. The FY04 revenues are coming in higher than projected. This results in a larger fund balance that will roll forward and with projected FY05 revenues increasing, the match for each agency is reduced, according to our agreement, to $75,232 for each agency. This leaves the project match portion of this budget for each agency to consider funding. A list of the FY05 projects proposed by the previous Airport Board (less some that simply could not be funded this year) is included in the enclosed Airport budget and listed below for your conveyance: PROJECT TxDOT Grant County City PROJECT TOTAL Reimbursement Match Portion Portion Acquire Property for Primary Surtace 400,000 360,000 40,000 20,000 20,000 RPZ Easement RWS12/03 24,500 22,050 2,450 1,225 1,225 Vehicle Parking Lot for GA Terminal 100,000 Entitlement Grant 166,667 RAMP 60,000 Relocate 12/30 Taxiway -Design 330,000 Install 3 Phase Electric 24,500 50,000 50,000 150,000 16,667 30,000 30,000 297,000 33,000 0 24,500 25,000 25,000 Aviation Terminal Furniture 25.000 Total t ,130,667 U:\County\FY05 County Participation Memo.doc 8,334 8,334 15,000 15,000 16,500 16,500 12,250 12,250 0 25.000 12.500 12.500 909,050 221,617 110,809 110,809 Page 1 of 3 The City Council has given tentative approval to all of the above projects except for the "Relocate 12/30 Taxiway -Design" project which requires a FY05 City/County match of $16,500. They have requested additional information on this project due to the fact that this is one of those multiyear commitment projects. In other words if the City and County approve the design funds in FY05 they are committing to the next phase of the project which is to actually construct such taxiway during FY06, which is a $5,935,000 project requiring a match by the City and County of $296,750 each. Staff will provide the requested data to Council as soon as possible, which will more than likely provide them with the data needed to go forward with the project. As soon as I know the Council's position on this item I will let you know. Library - For the past several years, the Library has been able to absorb major budget increases from larger than required fund balances. While this has helped keep the cost of operations apparently low, we will no doubt lose this fund balance at some point. Moreover, there is an excessive fund balance tied up in the Library Fund, which could and should be returned to both agencies. To bring this fund into proper budgetary guidelines, we are proposing a single equity payment to the participating entities. In other words, the Library will return the excess fund balance (above the required 5%) to the City and County. This return of equity equates to $94,001 per entity. To further this realignment of the budget, the Library staff was asked to bring a balanced budget forvvard where the revenues equaled the expenses. As a result, the participation levels form the City and County have increased from $390,523 to $416,113. The formula for calculating this funding requirement is simply expenditures minus service revenue divided by two. This funding level gives us a base funding level from which to build on from year to year. Coupled with the return of equity, the total net cost for the County is $323,329, which is $67,194 less than the current year. The return of equity ($94,001) will be returned to the County via check no later than October 15, 2004. Contracted Services Recvcling Center- The recycling center is operated on County owned property with 100% of the expense related to daily operations and disposal are paid by landfill fees generated by the City. The recycling center has developed $31,694 in grant funding that will pay for facility improvements to enhance the computer recycling and the extension of the east/west side of the main facility to improve traffic flow. The City is funding the match for this grant and not requesting any participation from the County. Fire - Based on FY04 year-to-date data 24% of all calls made by the Fire Department are into the County. Currently the City provides fire services to the County based on a contract for $125,000 per year. There is no change proposed in this rate for FY05. EMS - The City currently provides EMS services to the County for a total cost of $19,342. This covers a portion of the Medical Director's salary and a portion of the lease payment for the EMS office facility. However, the participation in the lease payment is scheduled to drop from $10,302 this year to $6,000 for FY05. U:\County\FY05 County Participation Memo.doc Page 2 of 3 The EMS program has been afee-based service for many years. However, due to rising cost and the ever-growing Medicare Disallowances (the portion Medicare dictates as non-collectable) the simple collection of fees will no longer support this program. In light of this the City has stepped forward to supplement the operational expenses of this operation through a contribution from the General Fund. This contribution, however, is to support that portion of the operation that serves the citizens of Kerrville. The remaining portion to be funded is that cost, above revenues, required to service County citizens. The City has determined that after removing the revenues generated by the County citizens there remains a shortfall of approximately $163,549 for providing these services to the County. Additionally, we have determined that 50.1% of all mileage placed on our EMS ambulance fleet are attributable to County runs. In order to maintain a sufficient replacement schedule based on this high mileage demand a portion of this replacement expense ($32,569) needs to be accounted for in our costing model for providing these services to the County. The City of Kerrville remains willing to provide such services to the County at the rate of $196,188 per year. The City is in the process of developing a revised agreement for this service. Summary Table Library Projects $35,834 $110,809 Owner Participation - 0 - 75,232 Participation Expense 390,523 416,113 Return of Equity - 0 - 94,001 Net Participation 390,523 322,112 Recycling - 0 - - 0 - Fire 125,000 125,000 EMS Medical Director 9,040 9,040 First Responder 9,675 10,780 Lease 10,302 6,000 Service Fee - 0 - 196,188 U:\County\FY05 County Participation Memo.doc Page 3 of 3 `~~~ u COUfTY JUDGE PnT TInL[r COMMI5610N[115 COVRT H.A "BusT[a^ BALOWUI, Pcr. 1 WIILNM "611L" WIWnM; PCT.2 JONATKAK L[Tt, PcT. 3 Dnv[ NMlMIL50N. Pcr. { October 7, 2005 THE COUNTY COURT of xeriacou)vTr,Texas 700 Mnw ICenKViuF. Teas 78028 T[i. (830)792-2211 Fnx: (830)792-2218 E-MML: ktticoccQklc.com Mr. Don Davis, Interim City Manager City of Kerrville 800 Junction Hwy Kerrville, Texas 78028 Re: Kerr County's FY 04-05 Contribution to Library Budget. Dear Mr. Davis: Following up on Mr. Brook's comments n3garrling the appliption of Kerr County's $94,000 equity interest in accumulated Library reserve funds to Kerr County's FY 04-05 contribution to the City's Library budget, please be kind enough to forward me copes of any notif+cations to Kerr County from anyone on behalf of the City of Kenville evidencing that such application had in fact occurred or would occur. Also, please be kind enough to fonnrard to me copies of any request or direction to the City of Kemille-from any person acting on behalf of Kerr County which authorized the application of Kerr County's $94,000 equity interest as a contribution to Kerr County's share of the FY 04-05 City Library budget. Thank you for your prompt attention to this matter. Yours very truly, _~ at Ttn ey, County Judge CL[{K JMm COU{T 1 IGn cc: Kert County Canmissioners LINE ITEM JUSTIFICATION WORKSHEET Name 1800 Generai Operations (Account NumberlName 1901 Transfer to General Fund FINANCIAL HISTORY Actual Expenditures FY 2003.04 Current Budget FY 200405 Increase (Decrease) Actual 2003-04 to Budget 20D4-U5 Actual Expenditures 0613012005 Projected Expenditures tY 2004A5 % Increase (Decrease) Projected 200405 to Budget 200405 Requested Budget FY 2005-06 % Increase(Decrease) Requested ?A05-06 to Current Budget 2004 05 $0 $94,001 0.00% $70,501 $94,001 0.00% $0 -100.00% DESC RIPTION JU TIFICATION HIGHLIGHTS expense is re urn o equi y o i y o errvi e. Actual 2003-04 RKSHEET LINE ITEM JUSTIFICATION WO eccount Num~r~N ~ °t° increase tpecreasel ~ pctua12003-0d Currer+lBudget gudg~2004A5 F'( 200405 0.00% _ expe eturn of ._~~t~irrt df e to lp~5e) Protected 2004.05 tected pctuat ~enddures Pro 405 ~ Budget200 Eypenditures 06I3p12005 ~ 2p0405 -10 en i- °b Increase l~°`""'- ' ReQuestkd 2006 to nt8udget 200 Requested~6g~' Cane 05 ~ ~ .100.00°t~ ~ sn ead one