On Mar. 16 at 7 p.m. a special finance committee meeting was held at the District of Houston council chambers. At the meeting, all capital and operating projects were addressed briefly by their corresponding department head.
“Our goal is to review each project, we’ll discuss the carry-forwards and address what is already committed financially, and then review the new projects,” said Michael Glavin, Chief Administrative Officer for the District of Houston.
There are six capital projects from 2016 being carried froward to 2017. These projects consist of five in engineering and operations, and one in leisure and parks. There are 18 new capital projects for 2017, consisting of two projects in protection, 11 in engineering and operations, two in leisure and parks, and three in administration. In total, the cost of all capital projects is $3,891,394. To date $98,382 of the $1,958,349 2016 carried over projects has been spent. If approved,the District of Houston requires $709,045 to complete the capital projects.
“The projects that are carried over from 2016, these were approved by council to go forward, the cost of the carryover is$433,733. These projects will not impact the 2017 tax rate because they have already been taxed for in 2016. With respect to the new projects, staff is asking that council consider the 26 projects. These projects total $1,020,403 and a number of them have grants approved or pending,” said Glavin.
Glavin said that the surplus for the 2017 budget is about $700,000.
There are 21 operating projects from 2016 being carried over to 2017. These projects consist of one project in protection,eight in engineering and operations, six in planning, four in leisure and parks, and two in administration. There are 26 new operating projects for 2017, consisting of two projects in protection, seven in engineering and operations, 11 in leisure and parks, and seven in administration. In total, the cost of all operating projects is $1,609,791. To date $55,655 of the$489,388 carried over projects of 2016 have been used, leaving a remainder of $433,773.
These carry over projects will not have a financial impact on the new budget.
In addition to carry over projects, District of Houston staff is requesting $1,020,403 for the new operation projects. A number of these projects also have grants approved or are in the approval process. If awarded all grants, $657,747 is the total being requested for approval.
In summary, the cost of capital and operating projects is $1,366,792. This means that the budget is over $666,792.Houston council has three options of how they would like to address or access the funds to cover the $666,792 that is over budget.
“We have several options. We could cut, take it out of reserves, or we could tax,” said Glavin.
This meeting provided councillors with a quick overview of the projects to help them better assess which are of most priority and which are not.
“Keep in mind that this was the first budget meeting, once the base budget is ready, staff will know what the surplus number is and then based on that number council will start reviewing the projects and make decisions as to what stays and what goes,” said Glavin.
The next special finance committee meeting is Mar. 25 at 9 a.m. at the District of Houston council chambers.
