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HomeMy WebLinkAbout13 0919 min242 The City Council met on September 19, 2013 at 11:30 a.m., in the Council Chambers at Plainview City Hall, 901 Broadway Street, Plainview, Texas. The agenda for this meeting was posted in City Hall at 11:00 a.m. on September 16, 2013. Mayor Wendell Dunlap presided. Councilmembers present were: Charles Starnes - District 1, Cathy Waggoner- District 2, David Garcia - District 3, V. O. Ortega- District 4, Lionel Garcia - District 6 and Eric Hastey- District 7. Staff members present were: Greg Ingham -City Manager, Leslie Pearce -City Attorney, Rusty Powers -Fire Chief, Jeffrey Snyder- Assistant City Manager, William Mull - Police Chief, Tammy Adams - Accounting Coordinator, Sarianne Beversdorf- Director of Finance, Vanessa Rincon- Accounting Coordinator, lsauro Gutierrez - Information Technology Specialist, Todd Kennemer- Community Development Manager and Belinda Hinojosa -City Secretary. News Media Present: Ryan Crowe - Plainview Herald Guests Present: Susan Blackerby and Becky Summers Councilmember V. O. Ortega led in the Invocation. Mr. Greg Ingham, City Manager presented for consideration on first reading Ordinance No. 13 -3598, An Ordinance Of The City Of Plainview, Texas, Adopting And Approving The Budget For The Fiscal Year Beginning October 1, 2013 And Terminating September 30, 2014, And Making Such Appropriations For Each Department, Project And Account; Cumulativeness Clause; Conflicts Clause; Severability Clause; And Effective Date. This Ordinance is to adopt the budget. The Council has had a budget workshop and two public hearings. In the most recent session SB 656 changed the budget adoption process and will require a record vote. Council discussed the fact that we had a 2% pay increase in the budget and discussed the fact we have changes in our insurance and they are going to affect employees. The 2% has been changed to $850 per employee. This did not affect budget totals, but just moved money around. This budget provides funds for the current level of services and provides a basis for a higher level of services in the future. Plainview is facing challenge because of Cargill Meat Solutions closing. The total expenditures are $28,965,495. The budget revenues for major operating funds for fiscal year ending September 30, 2014 are $22,444,435. The budgeted expenditures for major operating funds for fiscal year ending September 30, 2014 are $23,839,560. The total General Fund expenditures are $13,369,075 and the total General Fund revenues are $12,149,790 which is a $1.3 million increase. This includes the line item for $1 million to have funds available when the City and County move forward with an economic development program. We also have included additional funds in the amount of $72,500 which would go to the Industrial Foundation when we modify that contract if we move forward with that. Services Paid for by the General Fund are as follows: City Council Minutes September 19, 2013 Page 1 of 6 a) 24 Hour Police Protection b) 24 Hour Fire Protection c) 24 Hour EMS Service d) Maintenance of all Public Streets and Alleys e) Park Facilities including Baseball, Softball, and Soccer Fields f) Animal Control Services g) Environmental Health Services — including Restaurant Inspections h) Public Health Services i) Building Inspections and Permitting Services j) Code Enforcement Services k) Emergency and Disaster Management I) Economic Development and Grant Administration m) Main Street Program n) General Administration, Legal, and Finance Services Some of the major issues going forward are the increasing trends in our cost of health care. The City has had a very bad year in health care this year and we are transferring funds from General Fund, Utility Fund and Solid Waste management into the health insurance fund. We are also looking at changes as we work thru the rest of this fiscal year. Last year we eliminated 2 1 /2 positions and this year we are eliminating the assistant engineer position. The budget also had a 2% cost of living for all employees. We are giving Council the option to go from 2% cost of living to a flat pay of $850. We feel the $850 flat pay would help employees more in their costs they are going to be facing in the course of the year. The other things we are looking at are retention of a qualified work force in a competitive market. We have had turnover in fire and police. It also impacts CDL drivers and other people with other licenses. We also need to protect our credit rating because at some point we will need to make some major paving improvements to keep the City in a strong position for that. The General Fund Revenues are $12,149,790 and the General Fund Expenditures are $13,369,075. The tax rate included in the budget is $0.6185 which is about 6% higher than the effective tax rate of $0.5800. Last year's tax rate was $0.5785. The rollback rate is $0.6380. The Solid Waste Management Fund Revenues are $3,045,745 and the expenditures are $3,073,835. Funds are budgeted there to complete the development of a new nine acre landfill at the estimated cost of about $1 million. The refuse collection has a 2% increase which will take a one family residential unit from $19.08 to $19.46. The Water & Sewer Fund Revenues are $7,225,900 and the expenditures and debt service are $7,396,650 and the Water & Sewer System Improvements are $802,760. City Council Minutes September 19, 2013 Page 2 of 6 243 244 The most significant challenge for the Water and Sewer Fund is the fact that it lost 20% of its water revenues when Cargill Meat Solutions closed. The revenue generated by these water sales was a part of the overall rate structure and the loss of this revenue stream must be addressed. Since much of the water sales that were lost were local well water, there are no significant cost savings. The impact of the water increases will take you from $21.50 for the current base rate to $31.00 for the proposed base rate. The current rate per thousand is going from $1.70 to $1.87. Our goal as we move into the 2013 -2014 Fiscal Year is to continue to improve service and put our City in a position to address the economic challenges we are facing and to encourage growth in our community. Mayor Dunlap asked for public comment. There was no public comment. Mayor Pro Tem Waggoner moved to approve Ordinance No. 13 -3598 on first reading. The motion was duly seconded by Councilmember Hastey. Councilmember Lionel Garcia expressed concern over the budget process. He said it is not that he against several things but he does not agree on how we are going about it. He feels economic development is extremely important he just does not agree with the way we are doing it. He does not feel that it is the proper way. Councilmember Starnes stated he has reviewed prior financial statements. He feels city staff is "overshooting" what we are going to spend by an average of 92.7 %. We have averaged over collecting from our citizens an extra $80 a year per person. Based on ability of city staff to manage resources, there is a significant mismatch. He is having problem buying into this budget based on numbers presented and given our history and feels could have done a little better. Regarding the pay raise, we are suggesting a 2% budget line item. The average wages for jobs in our area has only gone up 1.5% a year for the past couple of years. He has looked at employment figures for our area over the past couple of years. We went from unemployment rate of 6% to almost doubling. In January to February we went from 1163 unemployed to over 2005 and that amount has continued to creep up. He said right now for an additional 1300 people $80 a month is not attainable in our county. Councilmember Starnes moved to amend proposed amended budget to be a flat pay raise for all city employees of a net 1.6 % instead of the 1.2% and that would match what our civilian labor force has seen on average. The motion died for a lack of a second. Councilmember Ortega stated his priority is economic development but some other things might have to wait. Mayor Dunlap stated that he appreciates that everyone is being cost effective with our dollars. We have a reserve fund to be proud of. He personally thinks we have a solid budget and that Council has had a chance to make recommendations to city staff if they felt like changes needed to be made. He thanked staff for the work done on this budget. City Council Minutes September 19, 2013 Page 3 of 6 Councilmember Starnes moved to adopt the flat pay budget. This amendment adopts this flat pay budget which includes a 2% total pay raise for City employees except instead of making it 2% of existing pay, it takes the entire 2% amount and divides it by the number of employees so that every employee gets the same amount. That would include the minimum wage floor sweeper as the city manager and that purpose is because of this anticipated health care cost which goes by person and not by pay level. It helps those employees offset a portion of the anticipated health care cost. The motion was duly seconded by Councilmember Ortega. Mayor Dunlap asked for a vote on the amendment on the floor to the main motion that we strike out the 2% and add $850 per person. Mayor Dunlap, Councilmembers Starnes, Waggoner, David Garcia, V.O. Ortega, Hastey voted "for" the motion. Councilmember Lionel Garcia voted "against" the motion. The amendment carried. Mayor Dunlap asked for a vote on the adoption of an amended budget for the fiscal year beginning October 1, 2013 and ending on September 30, 2014. Belinda Hinojosa, City Secretary asked for a record vote of the Council with the Council voting as follows: Mayor Dunlap — Yes Councilmember Starnes — No Mayor Pro Tem Waggoner — Yes Councilmember David Garcia — Yes Councilmember Ortega — Yes District 5 position - Vacant Councilmember Lionel Garcia — No Councilmember Hastey — Yes The motion carried with a vote of 5 "for" the motion and 2 "against." Mr. Ingham presented for consideration an action to ratify the Property Tax Increase reflected in the FY 2013 -2014 Budget. This is a prior legislative requirement that requires the Council to ratify that there is a property tax increase in the budget that you just adopted. There was no public comment. Councilmember Ortega moved to ratify the property tax increase reflected in budget for fiscal year 2013 -2014 budget. The motion was duly seconded by Mayor Pro Tem Waggoner and carried by unanimous vote. Mr. Ingham presented for consideration on first reading, Ordinance No. 13 -3599, an Ordinance Levying Municipal Ad Valorem Taxes For The City Of Plainview, Texas, For The Year 2013, And Directing The Assessment And Collection Thereof; Severability Clause; Cumulativeness Clause; Conflicts Clause; Repealer; And Effective Date. This is the ordinance adopting the tax rate. It is set at $0.6185. This is the tax rate included in the budget. This all goes to operation and maintenance. Mayor Dunlap asked for public comment. There was no public comment. Councilmember Ortega moved that the property tax rate be increased by the adoption of a tax rate of sixty -one and eighty -five hundredths cents ($.6185), which is effectively City Council Minutes September 19, 2013 Page 4 of 6 245 246 a 6.637931 percent increase in the tax rate. The motion was duly seconded by Councilmember Hastey. Belinda Hinojosa, City Secretary asked for a record vote of the Council with the Council voting as follows: Mayor Dunlap — Yes Councilmember Starnes — Yes Mayor Pro Tem Waggoner — Yes Councilmember David Garcia — Yes Councilmember Ortega — Yes District 5 position - Vacant Councilmember Lionel Garcia — No Councilmember Hastey — Yes The motion carried with a vote of 6 "for" the motion and 1 "against." Mr. Ingham presented for consideration on first reading, Ordinance No. 13 -3600, An Ordinance Of The City Of Plainview, Texas, Amending Chapter 13, "Utilities" Of The Code Of Ordinances Of The City Of Plainview, Texas; Cumulativeness Clause; Conflicts Clause; Severability Clause; And Effective Date. This ordinance amends the water rates and solid waste disposal fees as set forth in the budget. The impact on a 5,000 gallon water bill would take the base rate from $21.50 to $31.00 and the cost per thousand would go from $1.70 to $1.87. The Solid Waste collection fees would go up 2% from $19.08 up to $19.46. Mayor Dunlap asked for public comment. There was no public comment. Councilmember Starnes moved to adopt Ordinance No. 13 -3600 on first reading. The motion was duly seconded by Councilmember David Garcia. The motion carried with Mayor Dunlap, Councilmember Starnes, Waggoner, David Garcia, Ortega and Hastey voting "for" the motion and Councilmember Lionel Garcia voting "against" the motion. Mr. Ingham presented for consideration on first reading, Ordinance No. 13 -3601, an Ordinance Of The City Of Plainview Amending Ordinance No. 12 -3578 To Appropriate Funds In The General Fund And Various Revenue And Capital Funds Pursuant To Section 5.07 (A) And (D) Of The Plainview City Charter Allowing For Supplemental Appropriations In The 2012 -2013 Budget; Cumulativeness Clause; Conflicts Clause; Severability Clause; And Effective Date. During the course of this Fiscal Year we encountered some projects and opportunities that caused expenditures in some areas to exceed budgeted funds. The City is in a good position because we anticipate we will have $650,000 to transfer into our ailing health fund. Each fund makes a contribution into the service fund. We are not going to adjust the fund. We have had some major repairs in some areas. We have had to do some work to the chamber of commerce building since we are using it for storage now. Janitorial is going over budget because of the roof. a) On the capital improvement fund, we got an outside contribution from the Mayer Foundation on our animal control kennels. This is money in and money out. b) On the hotel occupancy tax — the civic center — we are formally approving the $385,000 the Council approved earlier. City Council Minutes September 19, 2013 Page 5 of 6 c) On our unemployment compensation — during the recession they extended unemployment benefits and we are going to exceed that budget again. d) Property and equipment insurance — keeps funds to help us for stuff that is not covered. This is where we handle our property insurance; on the roof repairs we had some miscellaneous revenue we received. We spent about $280,000 in roof repairs which was a little higher than anticipated. e) Solid Waste Management — transfer into health insurance fund; f) Solid Waste Management — an additional $70,000 and supporting the service center and an additional $9,000 in recycling; g) Health Insurance Fund — transferring into from other funds; we had to increase $1.78 million. h) On water and sewer had water system grant in Northeast part of town — had $48,000 for alternate; we are formalizing it this; i) Had weather related issues and had to rent pumping equipment and had to replace heating and equipment units; j) Service center — transfer k) Home grant — we are doing part of that administration and this is funding for those costs; I) The TDRA grant we had some increases in professional services for a total of around $300,000; m) Economic development we are proposing a $15,000 overrun just in case. Mayor Dunlap asked for public comment. There was no public comment. Mayor Pro Tem Waggoner moved to approve Ordinance No. 13 -3601 on first reading. The motion was duly seconded by Councilmember Ortega and carried by unanimous vote. The Council and staff reviewed the agenda for the City Council meeting of October 22, 2013. There being no further business, Mayor Dunlap adjourned the meeting at 1:22 p.m. Belinda Hinojosa City Secretary City Council Minutes September 19, 2013 Page 6 of 6 247