Twice in City Council Budget Meeting Staff Offered Mayor Old Numbers

For the second time in City Council's budget planning meeting Mayor Brenda Gunther asked for the current fund balance in a major fund and staff gave a year old budget projection.  The Water fund has over a $3.1 million fund balance as of 6-30-17.  There are at least two high margin months left in the fiscal year, July, August and September.

July's water sales came in at nearly $2.2 million, a virtual repeat of a highly profitable June which experienced a $1.5 million profit (on $2.1 million in water sales). 

Assistant Director Water Utilities Allison Strube shared how revenue is highly seasonal and revenue/profits occur mostly over our dry summer months.  This means City Council has to be patient to see if  the city will sell enough water at the end of the budget year to meet projections.  Strube said water revenue is on target to meet projections.

My longtime point has been that it makes no sense look at the Water fund balance in winter or spring to consider giving citizens water rebates  Any water rebate discussion should come after the money gusher and before staff can transfer overflowing water funds to other accounts. 

July is over and the accounting books have been closed.  The City's Water Fund balance could easily be over $4 million with two good months remaining. 

The Mayor asked for actual numbers.  City staff offered a budgeted fund balance number nearly a year old.  It happened first with the Solid Waste fund, then with the Water fund.  The city's not wanting to reveal current fund balances to Council or the public is beginning to look like a pattern.

Kelton Defers on Solid Waste Fund Balance

Operations Director Shane Kelton presented the need for the city to build its fund balance to fund an expanded or brand new landfill.  Shane got the obvious question from Mayor Brenda Gunther, "What's your fund balance now?"

Kelton's reply:  "I'd have too....  Do you have the Bluebook Tina?"

Discussion continued on various ways to expand the landfill while Finance Director Tina Dierschke flipped through paper.  Rather than give the current Solid Waste fund balance of nearly $2.5 million with three months left in the fiscal year, Dierschke gave the projected budget fund balance for year end of just over $2. 5 million.

Mayor Gunther clearly asked for the current solid waste fund balance.  The $2,463,745 could grow another $200,000 if the current spread of revenue over expenses continues as it has for the first nine months of the fiscal year.

I find it odd staff cannot answer a simple direct question, one that should be easily anticipated within the city's highly recognized budget process.

City Council to Consider Building Fund Balances

City Council will consider the 2017-2018 budget for major departments on Tuesday.  Both the Water and Solid Waste budget have excess money going to increase fund balance.  Yet, city staff failed to provide a current fund balance for either fund.  The City sold lots of water in June and continues to make big money off late charges.  It has nearly $3.2 million in the Water Enterprise fund balance as of the end of June.  As dry as July has been I expect that number will soon be much higher.

The Solid Waster fund has nearly $2.5 million as of the end of June.  These numbers should be part of a conversation as citizens pay the freight for the continued building of fund balance. 

City Council to Hear about Economic Development Funding on 8-8-17

Economic development was the major theme at City Council's strategic planning session on 7-27-17.  The City's Development Corporation conducts economic development for San Angelo.  It is funded by a voter approved, half cent sales tax.

Sales tax proceeds rose significantly during our oil boom 2014-2015 and fell afterwards.  City staff present regularly to Council and the Development Corporation on sales tax proceeds, as it is an important funding source for both entities. 

City Council will hear a budget presentation on  August 8th.  The presentation highlights major departments including the Development Corporation. 

The Development Corporation is primarily funded through the type B sales tax, 72% of which is earmarked for ballot projects and 28% of which is allocated for economic development initiatives. Staff proposed sales tax at a large decrease which subsequently decreased both the ballot and economic development expenses in order to balance.

A slide shows budgeted sales tax revenues for the current year of $9 million.  I couldn't find this number anywhere in city documents.

It's not in the proposed COSADC budget. Nor is it in the City's most recent monthly financial report, which indicates both an original and current budget.  Staff already revised sales tax proceeds down nearly $800,000 for the current fiscal year.

Staff will present the new $9 million number to City Council, which includes a former Development Corporation board member who approved last year's budget of $8.85 million.

The current fiscal year has two one-time gains, $1.1 million from the Hirschfeld-Martifer settlement and $1.6 million from asset sale gains.  These two items won't reoccur.  However, MedHab's economic development package with the city, originally estimated at $3.6 million, could expire in 2018.  Add back the city's planned support for OneEnergy's Mesquite Solar farm and more economic development funds could be freed up.

As of June 30 the Development Corporation had $14.5 million in cash and investments on its balance sheet.  These funds could cushion the projected sales tax decline from the current budget of $240,000.

Also, the last six months show signs that sales tax revenues could be stabilizing.  There might not be a shortfall at all.

Budgets tell stories about the present and the future.  I look forward to hearing the story of the $9 million and its precipitous fall of $1.15 million.  It might be a barn-burner..

Update 8-20-17:  The latest sales tax figures for COSADC show this revenue source is back on track.  Sales tax proceeds increased 13.5% from last July, putting the development corporation just over budget with two months left in the fiscal year. 

Update 8-22-17:   The $9 million sales tax projection came from April 2016.  City staff did not say why budget staff went so far back to fish out a number that has since been revised twice. 

Resignation Letter Submitted Six Days Before Cancelled ASAC Meeting

Citizens turned out for the June 15, 2017 Animal Shelter Advisory Committee meeting.  Their opportunity to be heard died due to lack of quorum.  The failure to achieve a quorum rested on the committee's former chair, who sat in the audience.

The Standard Times story on the non-meeting addressed Ms. Wilson's surprise resignation, which referenced her not having "enough hours in a day."  For those who are curious her second resignation letter from the ASAC is below.  Only Bradley Petty, ASAC member, got left off her e-mail. 

-----------------------------------------------------------------------------------------------------------------------------
Kendrick, Bryan
Subject: FW: Resignation from ASAC
From: Jenie Wilson
Sent: Friday, June 09, 2017 1:29 AM

To: Flores, James ; Salas, Robert ; 'Mo Soupiset' ; 'Faye Doepp' ; 'Sara Bennett' ; David Howard ; 'Dr Schulze'  

Subject: Resignation from ASAC 

Dear Mr. Dane, Mr. Salas, Mr. Flores and Animal Advisory Board Members, 

It is with much regret that I submit to you my letter of resignation of service to the Animal Services Advisory Committee. It has been an honor to serve with you and I know you will continue to strive to be a positive force of change for the welfare of the animals and good of our community. 

I visited with Mr. Flores at length earlier this evening, and he shared with me concerns that some of the advisory members expressed this evening regarding a statement I made to Standard Times Reporter, Ms. Rashda Kahn in reference to the injured dog that was euthanized on Saturday. I offer my sincerest apologies to anyone who took offense to my statement. Despite this unfortunate incident, I still have great respect for the Mr. Flores and the positive changes he has made for the San Angelo Animal Shelter. I understand that difficult decisions must be made every day and I do not envy the positions that he and his staff are put in daily. I will always acknowledge and praise the good work I have seen, however when I feel something is wrong or could or should have been handled differently, it would be wrong of me to stand silent. Silence has never brought forth positive change. 

As a representative of rescue, I will not always agree with the decisions made by people in the animal control industry and that is acceptable, as I am sure people who work in animal control do not always agree with the perspectives of rescues. But a mutual respect and desire to achieve a common goal can make a working relationship possible and successful. I hope that even though I disagree on occasion with San Angelo Animal Control, we can remain focused on our common goal to end the killing of adoptable pets. Mr. Flores has accomplished a great deal since he took over the shelter and I know there is more that needs to be done and more he wants to do. I wish Mr. Flores and the advisory board the very best in achieving these goals and I hope PAWS can continue to be a part of advancing adoptions though our partnership. 

For months you have heard me advocate for animals. You’ve heard me express a desire to help show the value that these lives have. I have said on many occasions that the only answer to our community’s complex issues with animal control is to put the responsibility back on the owners or guardians of these animals. That is a belief in which I stand firm. However, when humans fail these animals, I believe all of us have an ethical responsibility to protect them, aid them and shelter them, and I believe animal control should lead in that role. 

At this time, I do not think it is appropriate for me to continue serving in the capacity of chairwoman of the Animal Services Advisory Committee. I believe I can achieve more and be of greater assistance by focusing on my work with Concho Valley PAWS. 

I have enjoyed working with you and have had the privilege to learn from each of you. I am very grateful for the opportunity you have allowed me. 

Respectfully, 

Jenie Wilson
----------------------------------------------------------------------------------------------------------------------------

City staff said her first resignation letter was not available.  Yet the Standard Times wrote:

"First appointed to the committee on Feb. 18, 2009, and resigned Aug. 19, 2010, citing a conflict of interest." 

It was a conflict of interest for a newly hired rescue leader to serve on the Animal Service Board.  That conflict has only grown more egregious with the city paying the same rescue $60,000 a year for adoption management.

Minutes from the August 19, 2010 Animal Services Board meeting show Wilson resigning at the end of the meeting, just prior to adjournment.  Anyone wanting to make public comment got their opportunity that day.

The minutes refute City Clerk Bryan Kendrick's recent assertion that Wilson served out her allowable term the first go round.  He shared his belief at the City Council meeting where she was reinstated to the board.

The last official Animal Services Advisory Committee meeting had the former director outright lying to the board and public.  There's lots of air to clear since that May meeting.

City Council to Consider San Angelo's Latest Water Study

San Angelo's City Council will entertain hiring Alan Plummer Associates, Inc. to fulfill RFQ WU-3-17 at a not to exceed price of $547,000.  Proposals were due January 24, 2017.

The purpose of this project is to assist the City of San Angelo in developing a plan of action to address its current and future water supply needs. The primary goals of the project are to: 

• Evaluate San Angelo’s current water supplies and develop a plan for future use of these current supplies; 
• Identify potential new water sources and water management strategies; 
• Evaluate risk factors associated with new water sources and water management strategies; 
• Develop planning-level project concepts of new water sources and water management strategies, including preliminary opinions of project development costs and operations / maintenance costs; and 
• Prepare a Water Supply Engineering Feasibility Study that presents a comparison of options for meeting existing and future water supply needs for the City. 

San Angelo City Manager Daniel Valenzuela waived the engineering qualification required of the top two water positions.  His first waive enabled Ricky Dickson become our local Water Chief.  After kicking Dickson upstairs to Executive Director of Public Works Valenzuela waived the engineer requirement again for current Water Chief Bill Riley. 

Water Director Bill Riley wrote several months ago:

2017 will be spent pursuing that next water source, improving infrastructure and fortifying the Water Utilities Department’s financial standing.

City Council will consider an engineering proposal that focuses on finding our next water source(s) but it comes at significant cost, a nearly $550,000 maximum.  That will eat up some of the current $3.2 million in Water Enterprise fund balance as of 6-30-17.

The city last hired Alan Plummer in 2014 to conduct a study on using reclaimed water.  The study had a not to exceed price of $190,000.  City Council contracted with Alan Plummer for the direct potable use pilot study at a cost of $1.2 million. The Water Advisory Board did not go through with the use of reclaimed water.

The Water Advisory Board learned of the city's $43 million purchase of the Ford Ranch over the Hickory Acquifer at the same time as the general public.  In May 2016 the Water Advisory Board began narrowing down possible water projects for serious consideration.

After the city hired Riley it has gone on to hire/pay consultants for numerous projects. 

Raftelis - Water Rate Study for an initial $90,000 + a $17,000 add on (November 2014)
CDM Smith - Water Master Plan $314,460 
Gateway Planning - Lake Nasworthy development  $335,000

Consider Riley's background as a water consultant:

He served as the water and wastewater utilities manager at College Station for 11 years, although he worked for the municipality for about 17 years.

From 2000-02, Riley managed the water and wastewater consulting practice of Reed, Stowe & Yanke, providing financial, management and operations guidance to public sector clients, the release stated.

For the past 12 years, Riley served as president and general partner of Water Resources Management LLC — a water resources consulting firm that helps water utilities develop strategies for their operational, management, financial and resource challenges, according to the release.

So the city hired a non-engineer water consultant who has repeatedly hired other water consultants. I don't expect this pattern to end anytime soon.

Update 8-7-17:  The Water Advisory Board will hear a report on the CDM Smith study on 8-9-17 and consider approving the $547,000 study by Alan Plummer.

Animal Shelter Advisory Committee Fails to Get Quorum 2nd Month in Row

Despite appointing three members at Tuesday's City Council meeting the Animal Services Advisory Committee failed to get a quorum for its July 20th scheduled meeting.  Only four members of the current six appointees comprise a quorum.  This is the second month in a row the board did not meet due to poor attendance from appointed representatives.

After the cancelled June Animal Shelter Director James Flores resigned.  His resignation had two dramatically different story lines.  One had Flores the hero, the other saw him resign under pressure from poor handling of a series of events:

1) a shelter distemper outbreak, which may be lingering
2) the failure to respond to dog packs killing small pets near Glenmore Park/Old Christoval Road
3) the extermination of Misty after she'd been hurt by a car but appeared to have non-life threatening injuries
4) the $700 fine for two dogs temporarily being out of their yard and not being micro-chipped.
5) the prospect that the city's former veterinarian did not perform spays/neuters for shelter pets as represented by the vet and former Shelter Director James Flores. 

These issues remain outstanding but none of them were on the June or July ASAC agenda.  In addition, Flores outright lied in his representations to the ASAC on other Texas cities handling of community cats.  This discovery was not made by ASAC members or its chair, the group providing oversight.  It took an interested citizen to submit a public information request on the survey and conduct research which revealed Flores' numerous misrepresentations. 

Oddly, the June meeting only lacked one member for a quorum.  Sitting in the audience was former ASAC Chair Jenie Wilson, who'd apparently submitted her resignation.  As her resignation had not been accepted by the board or City Council I wondered why didn't she start the meeting, allow public comment and then entertain the agenda.  As this scenario did not happen many citizens who took the time to participate in local governance did not have an opportunity to speak in public comment.

The Standard Times article indicated Wilson resigned in time for it to be placed on the agenda, which must be posted 48 hours in advance.  

Jenie Wilson, who served as the chairwoman of the Animal Shelter Advisory Committee and resigned about a week ago, was also in the audience, waiting.--6-15-17

"I have my hands full with Concho Valley PAWS," Wilson said about her resignation. "There are only so many hours in the day and I decided to focus on all the positive things going on with PAWS and the shelter."

City Councilman Tommy Thompson re-appointed Wilson, the person who prevented public comment on the series of issues.  He did so as a new City Council representative, citing staff support as the main reason.  He did not indicate how he helped Jenie find more hours in the day to return to her ASAC role.

Consider approval of the withdrawal of a resignation and reinstatement of the Jenie Wilson (SMD2) to the Animal Services Advisory Committeee.

Thompson did so despite receiving numerous letters of concern about Wilson's clear conflict of interest overseeing a $60,000 contract with the city to run shelter adoptions.  The series of controversies arose under her board leadership and have not been placed on the agenda for the public to hear the results of needed investigations.

The new regime added this to the ASAC agenda:

All agenda items are subject to action. The Animal Services Advisory Committee reserves the right to consider business out of posted order and/or meet in a closed session on any agenda item should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government Code.

This language did not exist prior to the July agenda.  In addition to cancelling two meetings in a row the ASAC has two new tools to limit public comment.  Many people who wanted to give comment in June took off work to do so.  Moving items can impact people's ability to offer comment on a listed agenda item.  Addressing an item in closed session completely removes public comment and accountability.

Eventually the newly reconstituted ASAC will meet.  Their first task will be to select officers.  It will be interesting to see who they nominate and elect.  I expect City staff (who engineer the composition of the board) to influence the selection of officers.  It's a longstanding San Angelo tradition. 

Update 7-31-17:  Ms. Wilson's resignation letter was sent on Friday, June 9, 2017 at 1:29 am to Michael Dane, Bob Salas, James Flores and five members of the ASAC.  Oddly, current ASAC member Bradley Petty was not included in the e-mail list.  The scheduled meeting for June 15, six days after her resignation, was not held.