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Town Council Minutes - 06/08/2021 Work Session TOWN OF TROPHY CLUB TOWN COUNCIL WORK SESSION MINUTES Tuesday,June 8,2021;5:30 PM The Trophy Club Town Council met in a Work Session on Tuesday,June 8,2021. The meeting was held at Town Hall, 1 Trophy Wood Drive in the Council Chambers. TOWN COUNCIL MEMBERS PRESENT: Alicia L.Fleury Mayor Greg Lamont Mayor Pro Tem,Place 1 Greg Wilson Council Member,Place 2 Dennis Sheridan Council Member,Place 3 Karl Monger Council Member,Place 4 Michael Geraci Council Member, Place 5(participated via Video Conference) ABSENT: Philip Shoffner Council Member, Place 6 STAFF PRESENT: Wade Carroll Acting Town Manager Leticia Vacek Town Secretary/RMO David Dodd Town Attorney Patrick Arata Police Chief Jack Taylor Fire Chief Tony Jaramillo Director of Parks and Recreation Matt Cox Director of Community Development Mike Erwin Finance Manager Jill Lind Communications&Marketing Manager Haley Archer Human Resources Manager CALL TO ORDER Mayor Fleury called the meeting to order at 5:38 pm. INDIVIDUAL ITEMS 1. Discussion of FY 2021-2022 Revenue.(M.Erwin) Mr. Carroll indicated that the purpose of the Work Session was to obtain Council direction on the FY22 General Fund Revenue Estimate;the Comp/Class Study;and Long Range Planning which are all components forthe Strategic Plan. He noted that Mike Erwin would present the FY 2021-2022 Revenue and Long Range Planning items while Haley Archer would present the Comp/Class Study item. Mike Erwin provided the FY2022 General Fund Revenue Estimates related to Property Tax. Mr.Erwin reported that for Fiscal Year 2021 the budgeted amount for Property Tax Revenue was$7,200,000 while the Actual came in at $7,208,547. He reported an amount of$7,500,000 is proposed for FY 2022. With regards to the FY22 General Fund Revenue Estimate for Sales Tax,the FY22 amount is proposed at$1,200,000 which is the same as the FY21 Estimate. He noted that EDC,CCPD,and Street Maintenance was not part of this revenue estimate. PD-30 has approximately 60,000 sf of open space currently and did not add sales tax dollars from same. Mr. Erwin presented the FY22 General Fund Revenue Estimate for the overall General Fund Revenue at a total including property tax,sales tax,and all other revenue of$11,988,029. He noted that grants would not be budgeted until received opposed to plugging in that amount in the notification stage. Mr. Carroll asked if there were any questions adding that the Budget Sub-Committee may review the sales tax estimates again and provide tweaks as needed. June 8,2021 Page 1 2. Discussion of Class&Comp Study. (H.Archer) Mrs. Archer reported the Class and Compensation Study engagement with the group Public Sector Concepts began in January 2021 who have an extensive amount of experience working with over 50 D/FW cities. This study looked at where Trophy Club sits in a competitive place to help recruit and retain high quality employees. The salary study included a look at 10-15 local cities who are comparable in demographics, geography location and included a position analysis questionnaire for employees to complete pertaining to their job duties. Once completed, Supervisors reviewed the questionnaires and submitted to Public Sector Concepts to evaluate the data with the salary data. The study provides recommendations where salary ranges are sitting and showed that Trophy Club is overall within range across the board and anyone that fell out of the range will be moved to the minimum. The study also provided information for tenure adjustment. Mrs.Archer commented on the recent Public Safety changes made in February 2021 that provided a tenure adjustment to help balance out some internal equity. The study also combined tenure and provides a 2%increase, with discussions held on splitting this up,with adjustments being made and with performance merit increases.It was noted the average increase would be 2.5%that could be sustained by the Town. Mrs.Archer added in reviewing all options,this helps put Trophy Club in a competitive place in the market and also keeps ranges that will attract high quality candidates as that is where Trophy Club had struggled with the low ranges. Mr.Carroll added that Trophy Club worked with Public Sector Concepts to choose the best cities to compare to, as it was explained that 80%of whom you compare to is based on location,while the other 20%is demographics within the entity and its population. Public Sector Concepts' recommended list helped provide data that showed Trophy Club was within the average range when compared to area cities as well which specific staff needed to be brought up to the market range. The majority moved up were the Public Safety positions,while being barely out of range, as well as a couple of staff that were out of range. Mr.Carroll reported there were a few title changes,which will help when comparing the same positions. He also reported that now,the job descriptions are in the right place,and Mrs.Archer is capable of performing this annual study,as it was costly. In terms of tenure,reward was given for tenure in a position rather than tenure out of Trophy Club. Council Member Monger asked if this was spread across the board or mainly one department. Mrs.Archer reported there were six staff that involved adjustments and the majority came when balancing the Public Safety positions,with only 2-3 civilians. Mr.Carroll reported there were a few higher-level positions that were well outside where they needed to be and now everyone is within range. Mrs.Archer also shared that the full scope survey helped move Trophy Club from being at the bottom of the Public Safety salary range to the middle and top,which helps the Town obtain better candidates. Council Member Sheridan asked for the definition of tenure used. Mrs.Archer stated it involved how long a staff member had held that position title and then were bumped up to a new minimum and where they would be if they stepped forward. Council Member Sheridan confirmed that tenure did not have a specific position as far as time goes but questioned if Public Safety employees'tenure rated differently. Mr. Carroll stated that when looking at Public Safety tenure, it was based on their job experience and how long they had been with Trophy Club. While,with civilian employees,tenure was based only on how long they had been in their current position rather than job experience. Mr.Carroll reported that the proposed 2% increase was not across the board but a 2%of the total costs of salary increases, with buckets of money allotted to each department director to develop a plan for cost of living/merit raises. Lastly, he reported that employees that meet expectations will be given a cost of living raise and what is left will be divided by departments to give to the employees that are truly excelling and exceeding expectations. 3. Discussion of Financial Long Range Planning. (M.Erwin) Mr. Erwin referenced the tool that is being utilized to assist with Financial Long Range Planning. He referred to the spreadsheet showing the Capital Improvement plan (CIP) and Capital Equipment/Replacement plan (CER) providing the Council good snapshot. He noted that each department shows their CIP/CER costs for years 2022 through 2026. Council Member Monger asked if there is a place to drill down to obtain more detail specifically on the Police Department Budget. Mr. Erwin stated they will provide everyone access and added that for the Police Department;most all of their equipment purchases are drawn from the CCPD Funds; but with regards to the radios,they are funded through the General Fund CER line item; thus, the zero amount for FY2023 — 2026. He also noted that the Town is proposing to issue debt through Certificates of Obligation for Streets,Drainage,and Parks and explained that is why those line items were blank. He added that the issuance of debt would be on the following Council agenda. A brief discussion ensued with regards to property taxes and Council Member Monger asked of the percentage of the taxes that are frozen for owners that are eligible for the exemption. He was curious if that percentage stays constant each year. Mr. Erwin stated that it grows a bit each year and that there is approximately$358 million in value that falls under the freeze in Trophy Club which equates to approximately $290,000 that would otherwise go into the general fund and about $98,000 to the interest and sinking fund. Council June 8, 2021 Page 2 Member Monger requested the percentage as he just wanted to know if it was 10%or 20%and stated that he could not wait until he turned 65. Mr.Carroll stated that staff was looking for direction and asked of the debt issuance for our Streets, Drainage, and Parks. He explained drainage issues are being identified; the street sub-surface and/or replacement of concrete panels is being assessed and the pool is in need of upgrading as it is 25 years old. Council Member Sheridan asked for the definition of COs and GOs related to the bonds and what determines which go to the voters. Mr. Erwin stated that COs are Certificates of Obligation and General Obligation bonds. He added that GOs are approved by a vote of the citizens(which includes new City Hall or a Library)while COs can be approved by Council. Mr. Carroll stated that in speaking with the Budget Sub-committee; they preferred issuing CO Bonds for the Streets, Drainage,and Parks. Council Member Sheridan asked of the term of the bond proposed. Mr. Erwin responded that it has been calculated at 20-years. Council Member Geraci asked of the CO Bond Issuance coming to Council at the next meeting. Mr.Carroll confirmed that said item would be on the next meeting. Mr. Carroll stated that that staff is also seeking direction on the latter question asked by Council Member Geraci relative to being able to capture up to an additional 3.5 percent of tax revenue. This would ensure that our level of service does not change within the next couple of years and to take into account as the Strategic Plan is developed. Council Member Sheridan stated that as Council may change and decide to go in a different direction;what is done. Mr.Carroll stated that staff will pivot but cannot move forward with the strategic plan without knowing what revenue source(s)will be available. Council Member Sheridan clarified that the 3.5%tax revenue is strictly a planning tool to look into the future but does not obligate the Council next year. Mr.Carroll stated that was correct. Mayor Pro Tern Lamont noted that the two top priorities or complaints according to the survey are Taxes and Traffic and added that he does not want to increase the property tax rate and would be open to the capture of the 3.5%as a way to alleviate same. Mr.Carroll stated that he understood and added another item to take into account from the survey was that the community does not want a change in service and down the line as revenues decline,we will look at changes that will be required. Council Member Wilson stated that one must also be realistic with costs increasing;you will have to pay for it and he gave an example with the salaries and where they need to be in order to stay competitive noting something has to give. Council Member Monger added that if we want to continue to be the number 1 Safest Community in Texas; we must plan for it which will cost to do so. Mayor Fleury added that if we want to continue with the same level of service,continue to attract and retain qualified staff,you need to pay for it. Council Member Geraci stated that maintaining the same level of service and providing for the additional 3.5% capture of tax revenue in order to maintain our current tax rate is a great part of the strategic plan. Mr.Carroll noted that Trophy Club has never had a strategic plan and as staff works with the components of the plan,we need to ask,what is it going to take to do what we have heard the citizens tell us through the citizen survey. Those items are to hold the tax rate or maintain it as close to current as possible and don't decrease the level of services. He added that staff will work on a strategic plan with those priorities in mind and will update Council with options to consider during the budget timeframe. Mr. Carroll asked for direction on the Compensation Plan noting a cost of living(cola) increase for everyone at 2 percent and providing for performance pay for employees that are high performers to ensure fairness. Council Member Monger said he would support such a proposal. Council Member Sheridan asked staff to clarify the definition of cola because it is actually a merit increase but felt it was necessary to implement. Mr. Carroll agreed and thanked the Council for the direction provided. Mayor Fleury thanked staff for all their work and the presentations. ADJOURN Mayor Fleury adjourned the meeting at 6:37 pm. L� )Aci . Fleury, Mayor A est . eti 't_Vacek,TRMC/CMC/MMC Town ecretary/RMO June 8,2021 Page 3