Adopted Budget FY 2018-2019

Health Insurance
This year, the City’s cost of providing health insurance is budgeted a slight increase from last year’s adjusted
budget level. The total amount budgeted for claims is $11.1M. Last year’s estimated claims were $11.5M-
---- under the $19.6M quoted by the carrier for aggregate stop loss coverage that the City elected to renew.
There were some changes necessary as a result of the decreasing fund balance that supports the funding
of the City’s Health Plan. This year, the City added a “Buy Up” plan to its coverage. The premiums
under this plan would increase for each respective classification. Employees Only cost would increase
from $10 to $30; Employee plus Child - $91.50 to $109; Employee plus Spouse - $119 to $139; and
Employee plus Family - $121 to $171. City’s funding share will remain at 97%,74%,65%, 74% the same
as last year.
Retiree Health Insurance Plan
The City had an actuarial valuation performed as of October 1, 2014 to determine the annual required
cost (ARC) as well as the unfunded liability. Under GASB 45, which prescribes the City’s financial
reporting of the effects of this valuation for fiscal years 2015-16 and 2016-17, the ARC was determined to
be $825K for all City funds. The amount used in the budget is $844K. The City will continue using this
number since an engagement letter was signed recently to perform the report for FYE 2018 and future
years.
Debt Issues
The City has an outstanding debt balance of $73.9M in General Obligation and Combination of Tax and
Revenue Certificate of Obligations. The City also has outstanding certificate of obligations in the amount
of $10.3M for additional funding on the Performing Arts Facility of which will be repaid through the Hotel
Tax revenue.
The City held a Bond election on May 5,2018 and citizens approved the issuance of Bonds for $25M;
$22M for Drainage improvements and $3M for Traffic improvements.
In addition, the City has $115.8M outstanding in Revenue Bonds in the Waterworks and Sewer System.
This amount is comprised of different issues and for the undertaking of the upgrade to the South
Wastewater Treatment Plant, installation of Reuse Water Distribution Pipeline along with Pump Stations.
Also, Wastewater collection pipelines are going to be installed to provide services to un-sewered Colonia’s
in the northwest side of the City. Proposed loan funding for FY 2018-2019 will be used for various sewer
projects including improvements to the electrical and SCADA systems at the North Wastewater Treatment
Plant and installation of the Sprague Interceptor Sewer, water projects include sludge dewatering at the
South Water Treatment Plant, a transmission line from Main to Ware to the South Water Treatment
Plant, HCID #1 raw water line and improvements to the South Water Treatment Plant Expansion
Filter/Clarifier. The other Revenue Bonds the City has outstanding are the Airport and Anzalduas bonds
which were used for the Airport Expansion and the construction of the Anzalduas span.
A detail listing of the individual issues is provided in pages 124-125.
Rate Increases
The property tax rate adopted increased to 47.92¢ per $100 valuation due to the recent bond election. All
other charges for services remained at the same level.
2018-2019 Budget Message iv