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HomeMy WebLinkAbout09 0908 min332 The Plainview City Council met on September 8, 2009 at 7:00 p.m. in the City Council Chambers of the Plainview City Hall at 901 Broadway. The agenda for this meeting was posted in City Hall at 4:00 p.m. on September 4, 2009. Mayor John C. Anderson presided. Councilmembers present were: Kelvin Tipton-District 1, Belinda Pena-District 3, John N. Bertsch-District 4 and Roland Nash-District 7. Councilmember Cathy Waggoner-District 2, Ron Trusler-District 5 and Wendell Dunlap-District 6 were absent. Staff members present were: Greg Ingham-City Manager, Mike Gilliland-Director of Public Works, Will Mull-Police Chief, Dale Simpson-Director of Civil Service, Leslie Pearce-City Attorney, Rusty Powers-Fire Chief, Jack Keller-Budget Manager, Eric Turner-Main Street/CVB Coordinator and Belinda Hinojosa-City Secretary. News Media Representative: Hayley Cox-Plainview Daily Herald Guests present were: Angel Morren, David Wilder, Brian Pohlmeier and Sherrie Wall Councilmember Belinda Pena delivered the invocation and led in the Pledge of Allegiance. Councilmember Nash moved to adopt the consent calendar. The motion was duly seconded by Councilmember Bertsch and carried by unanimous vote. Items approved on the consent calendar included the approval of the minutes of August 25, 2009 and September 3, 2009; the granting of excused absences to Councilmembers Cathy Waggoner, Ron Trusler and Wendell Dunlap; approval of Resolution R09-206, a Resolution of the City Council of the City of Plainview, Texas, Approving the Request of the Plainview Daily Herald; Authorizing the Filing of the Agreement for the Temporary Closure of State Right-Of-Way with the Texas Department of Transportation for the Cowboy Day's Annual Parade and "Hale On Wheels" Bicycle Ride; Declaring that the Events Serve a Public Purpose; and Agreeing to Comply with Regulations; and approval of Resolution R09-207, an Amended Resolution of the City Council of the City of Plainview, Texas, Authorizing the Filing of Justice Assistance Grant Applications with the Criminal Justice Division of the Governor's Office of the State of Texas for an Assistance to Law Enforcement; Designating an Authorized Official and Authorizing Such Official to Execute all Documents Necessary; and Pledging Compliance to the Awarded Grant Program. Greg Ingham, City Manager presented information on the proposed tax increase. The budget provides funds for the current level of services and provides a basis for a higher level of services in the future. It also provides funds to comply with State and Federal mandates and provides for improvements to the City's infrastructure that are necessary to ensure progress and development. The development of the 2009-2010 Budget has been a challenging exercise. Although Plainview and the South Plains region have not been hit as hard as other areas of the country, we have still felt the effects of one of the worst recessions in recent years. While there are signs that the economy as a whole may be starting to improve, this budget has been approached as a transition budget that tries to balance the need to keep City operations moving in a positive direction and at the same time being conservative in terms of the cost of service impact it has on our citizens. City Council Minutes September 8, 2009 Page 1 of 6 This year we have started to see a flattening of our Sales Tax revenues and a flattening 333 in the assessed values of property. Along time wholesale raw water user decided to terminate a contract which on the one hand reduced water revenues, but on the other side of the contract freed up that amount of committed water for the residents of Plainview's long-term use. Interest rates have continued to decline and the cost of many of the goods and services that the City purchases are seeing upward pressures, which may further increase as federal Stimulus Funds start finding their way into the process. Some of the things we have accomplished in 2008-2009 are as follows: 1) Two new water wells were completed and a new SCADA system was installed on the newest three wells. 2) A major upgrade is in the process of being done on the SCADA system at our wastewater treatment plant to improve our monitoring and control of the processes there and our lift stations. 3) The City is working actively with other CRMWA cities to develop additional alternative groundwater sources due to Lake Meredith's persistent low levels. 4) Anew cell at the landfill has been completed and we are in the process of getting new monitoring wells installed at the site. 5) We have continued to work with the YMCA to improve the conditions of the City's softball fields in Regional Park and the City has completed the second phase of the three year lighting replacement plan for those fields. 6) Our Main Street/CVB has continued to work to market Plainview; is working with the Chamber of Commerce on the process of becoming a Certified Retirement Community; and is moving towards being certified as an entrepreneur friendly community. The Budget includes the General Fund, Solid Waste Management Fund, Water and Sewer Fund, Theater Arts Fund, Special Revenue funds, Internal Service Funds, Debt Service, and Capital Improvements. Total Budgeted Expenditures for the 2009-2010 Fiscal Year are $22,886,930 excluding the Internal Service Funds. This total is up $50,110 this year or 0.2% (two tenths of a percent). The budgeted revenue for the major operating funds (General Fund, Solid Waste Management Fund, Water & Sewer Fund, and Debt Service) for fiscal year ending September 30, 2010 is $19,835,040 with property tax being the largest source of revenue at $4,109,600. The total budgeted expenditures for the major operating funds (General Fund, Solid Waste Management Fund, Water & Sewer Fund, and Debt Service) for fiscal year ending September 30, 2010 is $19,656,790 which is an increase of 0.13%. The General Fund revenues for fiscal year ending September 30, 2010 are $11,086,690. The City is seeing fluctuation in the sales tax collections however the City budgeted conservatively in this area. Services paid by the General Fund are as follows: • 24 Hour Police Protection City Council Minutes September 8, 2009 Page 2 of 6 334 • 24 Hour Fire Protection • 24 Hour EMS Service • Maintenance of all Public Streets and Alleys • Park Facilities including baseball, softball and soccer fields • Animal Control Services • Environmental Health Services -including restaurant inspections • Public Health Services • Building Inspections and Permitting Services • Code Enforcement Services • Emergency and Disaster Management • Economic Development and Grant Administration • Main Street Program • General Administration, Legal and Finance Services As we worked through the 2009-2010 budget process we saw that our revenues were exceeding our projections and our expenditures were coming in under budget so we are acquiring some items in the current fiscal year such as radio repeaters and two vehicle cameras for the Fire service; spike strips, tactical jackets and other equipment for the Police Department; and some items for other departments that had originally been requested for the upcoming fiscal year. The City is transferring funds into the Equipment Replacement Fund, Capital Improvement Fund, and the Economic Development Fund. We are replacing items such as five Police vehicles and equipment; a 1998 ambulance with over 172,000 miles on it; a 1984 chip spreader that is critical for our seal coating program, and two 1996 model sports field mowers. We are taking advantage of the grant funds that have been received by our Police Department to literally move the upgrading of their technology program ahead by as much as five years. We are getting the digital camera system in all of our patrol vehicles which will allow us to move away from the old VHS tape system completely. We are putting laptop computers in all of our patrol vehicles and we are planning on using the funds that were seized earlier this year to develop a system that will allow our officers to transfer data more rapidly than they do now. The Department is moving much closer to a system that will enable the officers on the street to run their own vehicle checks without having to go through the dispatcher. The City continues to be impacted by the changes in how the funding for public pension funds is reported and calculated. As a member of TMRS for the majority of our employees and a separate fund for our Firefighters the City is addressing this issue in two areas. While the City had a relatively modest increase last year, using the permitted `phase in' rate, due to some modifications that TMRS made as a result of an updated actuarial study, Plainview, along with many other member organizations, saw a fairly substantial increase this year (about 1.7%). We have included this increase in this budget. The Firefighters Pension plan has experienced challenges in the past year because of the stock market fluctuations (its investment focus has been more market oriented than TMRS) and we have budgeted a 0.5% increase in the City's contribution rate there. Plans are underway to move forward on two major planning projects in the coming year. Public Works is moving forward to have along-term water plan developed and we have City Council Minutes September 8, 2009 Page 3 of 6 335 budgeted funds to initiate the Comprehensive Planning process. The City's last Comprehensive Plan was done in 1989 and the development of a new plan will be a tremendous tool to help the City move forward successfully. Another significant planning tool that is budgeted in the Solid Waste Management Fund is an aerial mapping project that will be our first step towards a more modern digital mapping program that will have the potential to be a valuable tool to many of our departments. One thing that is not in this budget is an overall adjustment to the pay plan. It is because of the commitment of our staff and employees to helping us control our costs that we have been able to strengthen the financial position of the City. In order to encourage the retention of trained employees and promote a stable workforce, we are proposing a one time incentive payment of 2 %2 % of base salary that would be funded out of the 2008-2009 Budget. He stated this would not be an ongoing commitment. The proposed tax rate is $0.5685/$100 valuation. The average home value is $75,223 and the city taxes paid by average homeowner per year are $427.64. The cost per month to support these city services is $35.64. The General Fund Expenditures for the fiscal year ending September 30, 2010 are $11,061,690 which is up just 0.95% over last year. The current tax rate for Plainview is $.5685 and the proposed tax rate for 2009-2010 is $.5685. Mr. Ingham presented a slide of twelve cities with a population in the 20,000 to 25,000 range and the average tax rate for them is $.6645 which is above the City of Plainview's proposed tax rate. He presented the following tax rate information for fiscal year 2009-2010: Rollback Rate for 2009-2010 Fiscal Year $0.6225 Proposed Tax Rate for 2009-2010 $0.5685 Adopted Tax Rate for 2008-2009 $0.5685 Effective Tax Rate for 2009-2010 $0.5638 Since the effective tax rate is lower that the proposed tax rate, this makes this a tax increase even though the tax rate is staying the same from last year. Councilmember Tipton moved to open a public hearing on the proposed tax increase. The motion was duly seconded by Councilmember Pena and carried by a vote of five "for" and zero "against". Mayor Anderson asked for public comment. There was no public comment. Councilmember Bertsch moved to close the public hearing. The motion was duly seconded by Councilmember Tipton and carried by a vote of five "for" and zero "against". The public hearing was closed at 7:27 p.m. Mayor Anderson announced that a vote on the first reading of the Ordinance to adopt the proposed tax rate will be held on September 17, 2009 at 11:30 a.m. at the Plainview Convention Center, 2902 W. 4th Street. A vote on the second and final reading of the City Council Minutes September 8, 2009 Page 4 of 6 336 Ordinance to adopt the proposed tax rate will be held on September 22, 2009 at 7:00 p.m. at City Hall, 901 Broadway. Mr. Ingham presented information on the 2009-2010 City of Plainview Budget. Since he had already discussed the general fund, he did not go over that part again. The Solid Waste Management Fund revenues for fiscal year ending September 30, 2010 are $2,804,850. The expenditures are $3,073,705. The Water & Sewer Fund revenues for fiscal year ending September 30, 2010 are $5,943,500 and the expenditures are $5,115,270 in operating expenses, $781,125 in debt service and $460,000 in system improvements for a total of $6,356,395. This fund is seeing a major increase in fees to the State of Texas. There is also new debt service for the additional water wells through CRMWA. The current residential water rate for Plainview for 5,000 gallons is $19.40 and $27.35 for 10,000 gallons. The proposed rate for 5,000 gallons is $20.35 and $28.45 for 10,000 gallons. Mr. Ingham presented a slide of twelve cities with a population of 20,000 to 25,000 and the average water rate for 5,000 gallons is $26.75 and $43.76 for 10,000 gallons which are above the City of Plainview's proposed rates. The base rate would increase from $11.45 to $12.25 per month and the rate per thousand would increase from $1.59 to $1.62 per thousand under 25,000 gallons. The rate per thousand over 25,000 gallons will go from $1.75 to $1.79. The current residential sewer rate for Plainview for 5,000 gallons is $16.00 and $23.35 for 10,000 gallons. The proposed rate is $16.45 for 5,000 gallons and $23.95 for 10,000 gallons. Mr. Ingham presented a slide of twelve cities with a population of 20,000 to 25,000 and the average sewer rate for 5,000 gallons is $23.38 and $36.96 for 10,000 gallons which are also above the City of Plainview's proposed rates. The base rate would increase from $8.65 to $8.95 and the rate per thousand would increase from $1.47 to $1.50 per thousand for the first 14,000 gallons. Mr. Ingham stated there are some water and wastewater infrastructure needs as follows. $500,000. • Two wastewater lift stations need extensive work at an estimated cost of $650,000 to $720,000. • Rebuild Headworks screen at Wastewater Treatment Plant at a probable cost of $55,000. • City staff is recommending that funds are budgeted each year to replace a minimum of one half mile of water distribution system and one half mile of wastewater collection system. • TCEQ has issues with three Plainview water towers and has requested new paint and minor repair work at an estimated cost of $943,000 or the City has the option of replacing these towers with one strategically placed tank at an estimated cost of $2,000,000. • TCEQ has an issue with two concrete water storage tanks with flat concrete roofs. TCEQ has requested that we implement a strategy to prevent rainwater from ponding on these roofs. Estimated cost for this is from $445,000 to City Council Minutes September 8, 2009 Page 5 of 6 337 Mr. Ingham stated this all adds up to approximately $3.5 million. He stated this is not included in the budget and is something the City would need to look at in the future. He also mentioned that the other funds such as the Fair Theatre are doing well and the Service Center is seeing some improvement. Councilmember Tipton moved to open the Public Hearing regarding the 2009-2010 City of Plainview Budget. The motion was duly seconded by Councilmember Nash and carried by a vote of five "for" the motion and zero "against" the motion. Mayor Anderson asked for public comment. There was no public comment. Councilmember Tipton moved to close the public hearing. The motion was duly seconded by Councilmember Bertsch and carried by a vote of five "for" the motion and zero "against" the motion. Mayor Anderson closed the public hearing at 7:48 p.m. He announced that a vote on the budget will be held on September 17, 2009 at 11:30 a.m. at the Plainview Convention Center, 2902 W. 4th Street. A vote on the second and final reading of the Ordinance to adopt the budget will be held September 22, 2009 at 7:00 p.m. at City Hall, 901 Broadway. Mr. Ingham presented for consideration and to take necessary action regarding Wee Care Child Center. He stated a year ago the City committed funds for the Wee Care expansion project in the amount of $50,000 conditional upon Wee Care raising $1 million. He stated we have also agreed to waive building permit fees and waive other fees up to $20,000. David Wilder of 300 Lometa introduced Angel Morren, Executive Director at Center for ten years, Mrs. Wall and Brian Pohlmeier. Mr. Wilder presented an updated report and asked that the City provide the $50,000 the City had committed to. Mayor Anderson moved to finalize Contract with Wee Care Child Center and authorize Mayor to execute same along with Wee Care executing same. The motion was duly seconded by Councilmember Tipton and carried by unanimous vote. There being no further business, Mayor Anderson adjourned the meeting at 8:12 p.m. ~~ Belinda Hinojosa City Secretary City Council Minutes September 8, 2009 Page 6 of 6