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Home My WebLink About12 0906 minThe City Council met on September 6, 2012, at the Plainview Convention Center, 2902 West 4 Street, Plainview, Texas. The agenda for this meeting was posted in City Hall at 3:55 p.m. on August 31, 2012. Mayor Pro Tem Cathy Waggoner presided. Councilmembers present were: Charles Starnes - District 1, David Garcia - District 3, Shane Martinez- District 5, Lionel Garcia - District 6 and Eric Hastey- District 7. Mayor Dunlap and Councilmember V. O. Ortega- District 4 were absent. Staff members present were: Greg Ingham -City Manager, Leslie Pearce -City Attorney, Sarianne Beversdorf- Director of Finance, Jeffrey Snyder- Assistant City Manager, William Mull - Police Chief, Mike Gilliland- Director of Public Works, Vanessa Rincon- Accounting Coordinator, Tammy Adams - Accounting Coordinator, Daniel Born - Information Technology Specialist and Belinda Hinojosa -City Secretary. News Media Present: Jessica Thornton, Plainview Herald Guests Present: Vance Scoggin and Ted Baker Councilmember Starnes led in the Invocation. Mayor Wendell Dunlap and Councilmember V. O. Ortega were granted excused absences. Greg Ingham, City Manager presented information on the 2012 -2013 proposed tax increase. The budget document presents in financial terms the overall plan for providing municipal services during the coming twelve months. This 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. Some of the things we have done are initiated the process of updating the Comprehensive Plan, the City and County are working with the Airport Board to develop an Airport Master Plan to help guide the development of the Plainview /Hale County Airport; work with the Industrial Foundation to create a Targeted Industry Study to help guide the efforts of the Industrial Foundation and community; and develop a water conservation plan to help the community make better use of the water supplies that are available to extend them further into the future. The total expenditures for all funds for the coming year are $31,084,783 which is $385,000 over last year's total funds. The budgeted revenues for the major operating funds are $22,208,895. The budgeted expenditures for the major operating funds are $22,148,200 which is a 2.4% increase. The property tax rate makes 37% of the general fund revenues, sales tax is 30% and franchise fees are 15% of the general fund revenues. Sales tax collection from 2006- 2008 saw an increase but recent years have been fairly flat. While that is not good, other cities in the State of Texas have seen a significant decrease in their sales tax. We have hit the projected number and should be at the same level or slightly higher. This year's budget includes the same tax rate as last year. City Council Minutes September 6, 2012 Page 1 of 4 133 134 Services that make up the budget are as follows: • Unger Library — Budget $412,400; • Streets and Traffic Safety — Budget $1,275,430; • Plainview Hale County Health Department — Budget $389,820; • Animal Control — Budget $145,615; • Community Development — Budget $143,440 • Code Enforcement — Budget $229,005; • Main Street — Budget $101,985; • Convention & Visitors Bureau — Budget $222,640; • Parks Department — Budget $717,685; • Plainview Police Department — Budget $3,459,905; • Fire /EMS Budget — Budget $3,182,455. The total general fund expenditures are $11,978,515 of which fire and police are the biggest expenditures. The proposed tax rate for 2012 -2013 is $0.5785 which is the same as the adopted tax rate for 2011 -2012. The effective tax rate for 2012 -2013 is $0.5712 and the rollback rate for 2012 -2013 fiscal year is $0.6280. Councilmember Starnes moved to open a public hearing on the proposed tax increase. The motion was duly seconded by Councilmember Martinez and carried by unanimous vote. Mayor Pro Tem Waggoner asked for public comment. There was no public comment. Councilmember Starnes moved to close the public hearing. The motion was duly seconded by Councilmember David Garcia and carried by unanimous vote. Mayor Pro Tem Waggoner closed the public hearing at 11:55 a.m. Mayor Pro Tem Waggoner announced that a second public hearing will be held on September 11, 2012 at 7:00 p.m. in the City Council Chambers at City Hall, 901 Broadway. A vote on the first reading of the ordinance to adopt the proposed tax rate will be held on September 20, 2012 at 11:30 a.m. at the Plainview Convention Center, 2902 W. 4 Street. A vote on the second and final reading of the ordinance to adopt the proposed tax rate will be held on September 25, 2012 at 7:00 p.m. in the City Council Chambers at City Hall, 901 Broadway. Mr. Ingham presented information on the 2012 -2013 City of Plainview budget. The Solid Waste Management Fund is an Enterprise Fund, which means that it supports itself with the revenues it generates. It does not use the Equipment Replacement fund for equipment purchases but instead pays cash or sometimes uses the Solid Waste Improvement Fund for the equipment or improvements that are needed. The financial position of the Solid Waste Management Fund and the Solid Waste Improvement Fund are tied together because the Solid Waste Improvement Fund is where major capital projects are funded. The Proposed Operating Budget for 2012 -2013 is $3,014,055 compared to $3,012,320 in 2011 -2012. This year we will be replacing one residential collection truck City Council Minutes September 6, 2012. Page 2 of 4 ($170,000); one commercial frontload collection truck ($250,000); and we have budgeted funds in the Solid Waste Improvement Fund to start the process of developing and building a new ten acre landfill pit at an estimated cost of $1.1 million. In order to fund the current operating needs for these departments and to develop a revenue stream from the Solid Waste Management Fund to the Solid Waste Improvement Fund, a two percent (2 %) increase has been included in the Proposed Budget. This will increase the base residential bill from $18.71 to $19.08. The operating expenditures for the Water and Sewer Fund for Fiscal Year 2012 -2013 are proposed to be $5,799,365 compared to $5,593,355 for`2011 -2012. The Water and Sewer Operating Fund is an enterprise fund, and it supports itself with the revenues generated. The Water and Sewer System Improvement Fund is linked with the Water and Sewer Operating Fund and that is where certain capital projects are funded. The Water Production budget is $1,499,965; the Wastewater Collection budget is $325,985; the Water Distribution System budget is $574,875; and the Water Reclamation Plant budget is $968,595. The Water & Sewer Fund revenues are projected to be $7,197,500. The largest part of the increase in the Water and Sewer Fund Operating budget is due to increases in the cost of maintenance at the wastewater treatment plant due to the fact this plant is now ten years old and major operating units are requiring repair and replacement. There are also a couple of significant projects in the W &S Improvement Fund that are scheduled for the coming year. Improvements to the Booster Pumps at the Kokomo pump station are projected to be $285,000 and it is scheduled to rebuild one mixer at the Wastewater Treatment facility at a cost of $60,000. There are four mixers at the facility and the plan is to rebuild one each year until all four have been rebuilt. In order to fund the Water and Sewer Fund adequately and to keep the funds on sound footing we have proposed an increase in the base sewer rate from $10.55 to $11.05 per month and the rate per thousand will increase from $1.53 to $1.60. These increases will raise a basic 5,000 gallon sewer bill from $18.20 to $19.05. We are continuing to review the impact that the changes made earlier this year to water rates have had on water consumption. It is our recommendation that we review these rates this fall to see the impact they had during the summer months which we are currently in, and then make necessary adjustments in early 2013. The RSVP Fund is experiencing change this year as their funding sources are cut back and their operating rules are changed. While the City sponsors RSVP and handles their accounting, the City has not directly funded the program historically. This year has seen RSVP leave their offices at Wayland due to the growth of Wayland's athletic programs and RSVP is now located in the basement of the Library. Plus when you look at their proposed budget it appears to be significantly smaller and that is because they cannot use the in -kind match from the City since we are their sponsor. However, they are continuing to look at other funding sources and adjusting as the processes change. The Fair Theater continues to host a variety of activities. We will be facing some challenges there as we move forward because they had had a group that used the City Council Minutes September 6, 2012 Page 3 of 4 135 for the coming year. 136 Theater weekly that is no longer using the facility so we are projecting a revenue drop The Service Center provides numerous services to multiple departments and is supported with revenues generated through the shop services it provides and direct transfers from user funds. In an effort to control overall expenditures one clerical position has been removed from this budget. Our other Internal Service Funds such as the Health Insurance Fund, Property Insurance Fund, and Cafeteria Plan continue to function as designed. The main area we are monitoring here is the Health Insurance Fund. As our loss experience has gotten worse and health costs have continued to climb we have seen some negative impacts on this fund and we are taking steps to move the overall direction of this fund in a positive direction. ' The Hotel /Motel Tax Fund continues to be active through our Main Street/CVB operations and works to actively encourage groups to use our facilities for meetings and seminars, as well as encouraging general tourism. Councilmember David Garcia moved to open a public hearing regarding 2012 -2013 City of Plainview Budget. The motion was duly seconded by Councilmember Martinez and carried by unanimous vote. Mayor Pro Tem Waggoner asked for public comment. There was no public comment. Councilmember David Garcia moved to close the public hearing. The motion was duly seconded by Councilmember Martinez and carried by unanimous vote. The public hearing was closed at 12:16 p.m. Mayor Pro Tem Waggoner announced that a second public hearing will be held on September 11, 2012 at 7:00 p.m. in the City Council Chambers at City Hall, 901 Broadway. A vote on the first reading of the ordinance to adopt the budget will be held on September 20, 2012 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 on September 25, 2012 at 7:00 p.m. in the City Council Chambers at City Hall, 901 Broadway. The Council and staff reviewed the agenda for the City Council meeting of September 11, 2012. There being no further business, Mayor Pro Tem Waggoner adjourned the meeting at 12:24 p.m. ilade) Belinda Hinojosa City Secretary City Council Minutes September 6, 2012 Page 4 of 4