AGENDA MEMO
BUSINESS OF THE CITY COUNCIL
CITY OF FULSHEAR, TEXAS

EXECUTIVE SUMMARY

For your review attached are the following documents:

1.      FY2025 Proposed Budget & Capital Improvement Plan

2.      Supporting documentation

 The below are major changes in the budget since the July council meeting:

General Fund (100) - Human Resources Department: Real & Personal Property, General Liability, Worker’s Compensation Insurance Expense Accounts – adjusted for the renewal rates received from TML.  The City is still waiting on the renewal rate for Auto Liability but have budgeted for an anticipated increase.

1. Utility Fund (500):  Real & Personal Property, General Liability, Worker’s Compensation Insurance Expense Accounts – adjusted for the renewal rates received from TML.  The City is still waiting on the renewal rate for Auto Liability but have budgeted for an anticipated increase.
2. Utility Fund (500):  Emergency Repairs for $200,000 – this was created to account for emergency repairs.  In the past, this has been budgeted in the capital projects fund but feel the utility operations fund is the more appropriate location for it.
3. Capital Project Funds (300, 501, 551) – All projects have been updated with projected costs for FY24 Estimated and FY25 budget based on information received from the engineers/design teams.  Additionally, projects were renamed in Fund 501.  The original project name is in parenthesis for clarification.
4. City Capital Project Funds (300) – a new line item was created for the FY2024 Estimated for City Hall Storm Repairs and Improvement in the amount of $300,000.  Excess funds from the Fund 300 fund balance were used. The intent is that major expenditures will not be needed next year for the city hall building improvements. 
5. Harris Street will be awarded at the September Council meeting.  The award amount will include the contingency and alternates A, B, & C and be $3,749,795.  This is reflected in the FY2024 Projected amount for the Harris Street project in Fund 300.  The alternates total cost is $654,950.   EDC A Board has already agreed to pay half of these alternates excluding the cost of conduit ($82,000) if EDC B Board approve paying the other half.  The total cost to each EDC would be $286,500.  EDC B Board meets the Monday evening before the Council meeting.  If approved, the budget will be reflected to show the increase in the transfer in/out from Funds 601/701 to Fund 300 for these additional expenses.  The total cost to the City would be $3,176,845.03 and includes the base bid, conduit expense, and contingency cost.

Additional Information:

1. The General Fund still shows a surplus of $443,796.  This surplus will remain as is for now.
2. Please note the transfers out of $1,300,000 from the general fund is from the excess fund balance
3. STEP Program – this expense is currently in the operating budget and will remain.  In April of 2025 it will be given to all qualified employees.  To receive, the employee must be in good standing with the City.  Additionally, administration plans to work with Finance and Human Resources during the next fiscal year to revamp the STEP program with the possibility of it being, in part, merit based.  Once this is done, the recommendations will be presented to Council.

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