SPECIAL CITY COUNCIL MEETINGNovember 4, 2013 at 3:00 p.m.

AGENDA

Notice is hereby given that a Special City Council Meeting of the governing body of the City of Hondo will beheld November 4, 2013 at 3:00 p.m. in the City Council Chambers, City Hall at 1600 Avenue M, Hondo, Texas,for the purpose of discussing matters incident and related to the City of Hondo. The following items will bediscussed, to-wit:

1) Call to order.

2) Quorum check.

3) Pledge of Allegiance.

4) Executive Session: The City Council of the City of Hondo may convene in Executive Session inaccordance with the Texas Open Meetings Act, Texas Government Code, Section 551.071(Consultations with Attorney) on matters in which the duty of the attorney to the governmental bodyunder the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly requiresdiscussion in closed session); Section 551.072 (Deliberations about Real Property); Section 551.087(Deliberations Regarding Economic Development Negotiations); Section 551.074 (Personnel Matters:To deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal ofan officer or employee).

a) Discussion regarding potential lease, purchase or value of real property.

b) City Manager Evaluation.

c) Discussion regarding employment of new positions for Assistant City Manager, AirportManager and part-time Municipal Court Clerk.

5) Discuss and consider appropriate action resulting from Executive Session.

6) Discuss and consider Ordinance No. 1001-11-13, an ordinance of the City of Hondo, authorizing theproposed budget amendments to the FY 2013-2014 annual budget for an Assistant City Manager, AirportManager and part-time Municipal Court Clerk. (Jeff Litchfield)

7) Adjourn.

I hereby certify that the above Notice of Special City Council Meeting of the governing body of theCity of Hondo was posted on the bulletin board in the City Hall, 1600 Avenue M, Hondo, Texas, at aplace convenient and readily accessib^i^J^^^gral public at all times, November 1, 2013, 2013 at12:30 p.m.

Glorm Colbath, City Secretary

The City Council of the City of Hondo reserves the ngrttit&^ij&tfrlin Executive Session in accordance with the Texas Open Meetings Act,Texas Government Code: Section 551.071 (Consultations with Attorney), Section 551.072 (Deliberations about Real Property), Section 551.074(Personnel Matters), Section 551.076 (Deliberations about Security Devices), or Section 551.087 (Deliberations Regarding EconomicDevelopment Negotiations) on any of the above items.

NOTICE OF ASSISTANCE AT PUBLIC MEETINGSThe City of Hondo City Council Meetings is available to all persons regardless of disability. If you require special assistance, contact the CitySecretary forty-eight (48) hours prior to the meeting time at 830-426-3378.

City Manager's OfficeCity of Hondo1600 Avenue MHondo, Texas 78861

To: Mayor and Council

From: Jeff Litchfield, City Manager

Date: November 4, 2013

Re: Amendments to the 2013-14 Budget

This memo provides information on amendment(s) requested to the current year budget and provides a

projection of year-end balances, based on Budgeted Amounts. A recap of year-to-date amendments

and requests is attached to the Ordinance as Exhibit A.

Budget Amendment(s) - Ordinance

The Ordinance authorizes amendment(s) to the City's 2013-14 Budget.

Amendment 01 - Funding an Assistant City Manager - The organizational structure for the City of Hondo

is such that ten staff report directly to me, the City Manager. The ten staff includes:

• Administrative Assistant

• Public Works Director

• Police Chief

• City Secretary

• Director of Economic Development

• Finance Officer

• Director of Electric Services

• Golf Course Manager

• Library Manager

• Recreation Center Manager

In addition, while not reporting directly to the me, significant time is used interacting with the Human

Resources Coordinator.

I wanted to fund the Assistant City Manager (ACM) position during the formal 2013-14 Budget process,

but held off because of the unknown financial condition of the fund. Now that several months have

passed and I have a better feel for the 2012-13 ending balances, I feel comfortable asking to fund the

position. An ACM will help me manage staff and implement changes that are needed to keep us moving

forward. The final distribution of work load will depend on the strengths of the individual we are able to

hire but I expect to move about half of my workload and associated positions under the new person.

The expected cost of the position, including salary and benefits, is $115,000 per year. Since the position

would probably not be filled until January, I believe a budget amendment of $87,000 will fund the

position for the remainder of fiscal year 2013-14.

Adding this position requires us to address our lack of space. While we have not yet tied down a

location, I would like to have the position approved at this time so I can advertise, interview and hire.

This gives me two months to locate and prepare office space to rearrange staff as necessary.

Amendment 02 - Funding an Airport Manager - For the last several years, we have had a part-time

Airport Manager. First, the position was combined with that of the Public Works Director and more

recently combined with the Parks/CIP Coordinator position. Now that the Airport Land Release project

is nearing completion and we are ready to actively market the Airport property, we are in need of a full-

time Airport Manager.

Based on the skill set of the current Parks/CIP/Airport Manager, we will utilize him as the Parks

Superintendent and actively recruit an Airport Manager.

The expected cost of the position, including salary and benefits and other miscellaneous items, is

$97,000 per year. Since the position would probably not be filled until January, and part of the position

is already funded, I believe a budget amendment of $73,000 will fund the position for the remainder of

fiscal year 2013-14. The Budget Amendment will impact both the General Fund and the Airport Fund.

Indirectly tied to the above is the workload associated with our Administrative Assistants. We have

three in the City, one funded by the Airport Fund, one funded by the Electric Fund, and one funded by

the General Fund. For some time now, I have wanted to analyze their workload to ensure they are

being fully utilized. Additional duties might need to be assigned so they will have a workload

appropriate for a full-time position. These additional duties might be outside those duties normally

associated with the fund they are being charged to. This is a conscious decision on my part and any

change in funding streams to properly record the positions will be done later in the year. I might even

wait until the next budget cycle to adjust.

Amendment 03 - Part-Time help in Municipal Court - The Municipal Court Judge has asked for a part-

time clerk to assist in working the backlog of cases and for additional assistance in the area of Court

Bailiff. I am requesting funding of $8,000 to be applied towards these two requests.

Closing

In closing, I request you approve the ordinance that amends the 2013-14 Budgets.

ORDINANCE NO. 1001-11-13

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HONDO,TEXAS, AUTHORIZING AMENDMENTS TO THE ADOPTED ANNUALBUDGET OF THE CITY OF HONDO, TEXAS FOR THE 2013-2014FISCAL YEAR PROVIDING FOR SUPPLEMENTAL APPROPRIATIONAND/OR TRANSFER OF CERTAIN FUNDS; PROVIDING FORSEVERABILITY; AND PROVIDING FOR OTHER MATTERS RELATEDTO THE SUBJECT.

WHEREAS; by Ordinance No. 994-09-13, the City of Hondo, Texas, adopted its annualbudget for the 2013-2014 fiscal year on September 9, 2013; and

WHEREAS; Section 7.08 of the City of Hondo Home Rule Charter provides foramendments after adoption of the budget; and

WHEREAS; the City Council finds and determines that it is prudent to amend the budgetas set forth in this ordinance due to unforeseen conditions that have occurred in the City; and

WHEREAS; the City Council finds that this amendment will serve the general welfare ofthe citizenry; and

WHEREAS; the City Council deems it advisable to amend the budget for municipalpurposes and for allocating $86,000 from the General Fund for the funding of an Assistant CityManager position; and

WHEREAS; the City Council deems it advisable to amend the budget for municipalpurposes and for allocating $21,000 from the General Fund and $52,000 from the Airport Fundto accomplish the funding of an Airport Manager position; and

WHEREAS; the City Council deems it advisable to amend the budget for municipalpurposes and for allocating $8,000 from the General Fund to accomplish the funding of part timeassistance relating to Municipal Court; and

WHEREAS; the amended budget appended here as Exhibit "A", for the fiscal yearbeginning October 1, 2013 and ending September 30, 2014 was duly presented to the CityCouncil by the City Manager.

NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OFHONDO, TEXAS:

SECTION 1. The facts and matters set forth in the preamble of this Ordinance are hereby foundto be true and correct.

SECTION 2. That the City Manager is hereby authorized and directed to make the amendmentsset forth in this ordinance to the appropriations for the fiscal year beginning October 1, 2013 andending September 30, 2014, for the support of the general government of the City of Hondo,Texas, a copy of which is appended as Exhibit "A".

SECTION 3. That the budget, as shown in words and figures in Exhibit "A" is hereby approvedin all aspects and adopted as the City's amended budget for the fiscal year beginning October 1,2013 and ending September 30, 2014.

SECTION 4. Should any part of this Ordinance be held to be invalid for any reason, theremainder shall not be affected thereby, and such remaining portions are herby declared to beseverable.

SECTION 5. These amendments shall become an attachment to original budget for the 2013-2014 fiscal year.

PASSED AND APPROVED THIS 4th DAY OF NOVEMBER 2013.

JAMES W. BANNER, MAYOR

ATTEST:

Gloria Colbath, City Secretary

Exhibit A

Recap of FY 2013-14 Budget AmendmentsAs of November 4, 2013

Beginning Working Capital - Budget EstimateAdjustment for Actual Beginning Working Capital - AuditedEquals Beginning Working Capital - Audited

Proposed (Projected) Revenues as of 9/24/13Amendments:

Total Revised Revenues

Total Available

Adopted Expenditures/ExpensesAmendments:01 - Funding an Assistant City Manager02 - Stand alone Airport Manager Position03 - Municipal Court Assistance

Total Revised Expenditures/Expenses

Ending Working Capital, based on Budgeted Amounts

Ending Days of Working Capital, based on Budgeted Amounts

Date

10/01/13TBDTBD

10/01/13

10/01/13

11/04/1311/04/1311/04/13

Fund 01General

673,484

673,484

5,827,618

5,827,618

6,501,102

5,719,635

87,00021,0008,000

5,835,635

665,467

41.62

Fund 09C&R

66,700-66,700

265,700

265,700

332,400

330,900

330,900

1,500

Fund 02Electric

636,088-

636,088

9,447,300

9,447,300

10,083,388

9,275,937

9,275,937

807,451

31.77

Fund 03Water/Sewer

(87,525)

(87,525)

3,182,407

3,182,407

3,094,882

2,886,550

2,886,550

208,332

26.34

Fund 04Airport

(121,070)

(121,070)

820,970

820,970

699,900

1,152,495

52,000

1,204,495

(504,595)

(152.91)

Fund 05Sanitation

(26,322)-

(26,322)

1,230,000

1,230,000

1,203,678

1,213,403

1,213,403

(9,725)

Fund 18CoHEDC

1,786,316

1,786,316

440,000

440,000

2,226,316

369,052

369,052

1,857,264

Fund 20STRTC

41,136

41,136

41,100

41,100

82,236

64,400

64,400

17,836

Fund 21Hotel/Motel

24,650

24,650

115,000

115,000

139,650

84,000

84,000

55,650