HomeMy WebLinkAbout07 0906 min122 The City Council met on September 6, 2007, at the Plainview Convention Center, 2902
West 4th Street, Plainview, Texas. The agenda for this meeting was posted in City Hall
at 3:30 p.m. on August 31, 2007. Mayor John C. Anderson presided. Councilmembers
present were: Kelvin Tipton-District 1, Cathy Waggoner-District 2, Belinda Pena-District
3, John N. Bertsch-District 4, Ron Truster-District 5, Wendell Dunlap-District 6 and
Roland Nash-District 7. Councilmember Cathy Waggoner entered the meeting at 12:13
p.m.
Staff members present were: Greg Ingham-City Manager, John Castro-Director of
Community Services, Leslie Pearce-City Attorney, Jack Keller-Budget Manager, Will
Mull-Police Chief, Dale Simpson-Civil Service Director, Rusty Reese-Parks
Superintendent, Kelli Shurbet-Nursing Supervisor and Belinda Hinojosa-City Secretary.
News Media Representative: Richard Orr-Plainview Daily Herald
Guests Present: Charles Starnes, Phyllis Wall and Mike Melcher
Councilmember Kelvin Tipton delivered the invocation
Greg Ingham, City Manager provided an overview of the 2007-2008 budget. The
budget is the fiscal plan for the coming year and we try to comply with all State and
Federal mandates and also what we need for the City's infrastructure as we move
through our budget and move into the next fiscal year. We find ourselves faced with
several challenges. There continues to be upward pressure in our general operating
costs, and we continue to upgrade and replace equipment and take care of our
employees.
The City is looking at significant capital improvement projects. We will need to do some
additional planning in terms of having some analysis done of what our future capital
needs are in areas such as streets. We have already done some preliminary studies on
water improvements and we will try to get a package together to see overall where we
are.
The services the City of Plainview provides are paid by the citizens who receive the
services. We do not receive state aid and we do not see any large industries moving
into the City.
The total budgeted expenditures for Fiscal Year 2007-2008 excluding all service funding
are about $21,882,000 which is up 1.9 million from last year. The biggest part of the
increase comes in our sanitation fund where we are looking at an increase of over $1
million for construction of the new landfill pit. Our major operating funds include the
General Fund, Solid Waste Management Fund, Water and Sewer Fund and the Debt
Service Fund. Property taxes are a significant source of our revenue at 21 %. Our total
revenue is $19,020,260 which is up $782,000 which is up 4.3% for all of our operating
and debt service funds.
Our expenditures for our major operating funds; of the total City operations police and
fire make up 30% of our total expenditures of $18,823,785. This number is up $670,000
or 3.6%.
City Council Minutes September 6, 2007 Page 1 of 7
In our General Fund we are looking at an increase of $623,000. Last year our budget 123
was $9.8 million and we are at $10.5. Property tax is 36%, sales tax is 30% and this
year we arE; seeing an increase of 3% of franchise taxes. This increase is the reason
why we are not going up our property taxes this year because in the next two months
we will be renewing franchise ordinances with the utilities companies and we decided to
increase our frar~ichise fees by 2%. Most cities are now setting their franchise fees for
the use of our streets and right-of-ways at 5% and we are already setting our franchise
fee at 5% far our own utility companies and for our cable franchise.
We are being conservative in the projection of our sales tax collections. This year we
are seeing .an increase but we have a lot of activity due to construction of our ethanol
plant.
Police and f=ire make up 26% and 28% of our General Fund expenditures, with a total of
$5.6 million dollars for police and fire services. Our property taxes generate $3.7 million
dollars which do not cover our police and fire service.
Sine the City is coming in under budget in our General Fund it is enabling us to transfer
some funds to other funds for other uses. Some of the items we are purchasing this
year are pagers in the fire department (this is our second year), ladders, adaptors, our
Parks Department is acquiring a solid screening fence for part of the Bulldog baseball
field area, and the Library is getting some additional building repairs done and printers.
Included in the budget are five more digital cameras for the Police Department, the
replacemenll of seven vehicles, upgrading SWAT Team Vests and purchasing 20 Taser
units. In the Fire Department we are purchasing cone-ton pickup to replace an old unit
and we are .adding a skid mounted tank and pump so that it can be used for grass fires.
We are also upgrading the EKG monitors in our ambulances, and are placing portable
defibrillator units in our public access buildings.
Another thing that is impacting our budget in our Police Department is that last year we
went to twelve hour shifts because of a large number of personnel being off due to
injuries. As we have moved back closer to being fully staffed, we feel that it would still
be advantageous to stay on the twelve hour shifts. This has the effect of putting more
police officers on the streets; however, it does result in an increase in overtime. We do
believe it is <~ cost effective way to put more manpower on the street.
We are also sE:eing some increase in our workers compensation. Our Police
Department is putting together an accident review team for their Department. Our Fire
Department is increasing their efforts towards physical fitness, and our City wide Safety
Committee continues to work in this area across all departments.
Vehicle replacerr~ent and computer replacements are being handled through the
equipment replacement fund. We are using that as a financing mechanism. We are
paying more out of our general fund into our equipment replacement fund to purchase
these vehicles and the computers we are buying which gives us a future funding
mechanism. We are also seeing an increase of over $100,000 a year in our payments
to the equiprent replacement fund. We are now in the range of about $330,000 a year
and that nurriber is going to continue to grow as we rotate in.
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124
We have included a 3% cost of living adjustment in this budget for all employees. Some
entities are going a little higher than that, but we feel that if we can stay at 3% it is better
than not taking any step at all to try to keep up with our cost of living.
This year we have had a good year in our general fund. We have had our expenditures
come in under budget because of the work by our department directors and supervisors
and we have seen our revenues come in a little higher than expected so that has given
us some latitude to do some things that we want to do and need to do to help us meet
our needs in other areas. Several of the equipment replacement items that we are
looking at this year we felt that if we went ahead and purchased on a cash basis we
would avoid putting a finance charge into our general fund budget. Some of these
things that we are looking at that we are going to have as part of a general update. We
are looking at computer and printer docks for our police units, the video cameras and
tasers and also the upgrade on our EKG units and a new plotter and some other
equipment. We are funding on a one time basis.
Councilmember Truster asked if any money was put up for improvements to the
Chamber of Commerce building. He was advised that we are putting $250,000 in the
equipment replacement fund and $250,000 into the capital improvement fund and we
are using $25,000 for parks improvement. The Council has quite a bit of flexibility as to
what we do with that capital improvement fund. We have committed $90,000 out of
capital improvements for our portion of the baseball park improvements. The City has
the drilling reports and they have been forwarded to the folks that said they could fix the
floor and to our engineer and architects because this looks like it could be a fairly
significant issue.
We are transferring $175,000 into our economic development fund. Those transfers will
show up in the budget amendment and will occur in our current fiscal year.
Our general fund increase is being funded primarily through a small projected increase
in sales tax and the 2% increase in franchise fees to Xcel and Atmos for the use of our
streets and right of ways. Our property rate this year will be set at the effective rate
which is slightly less than last year's rate at .5342¢ which is included in this budget.
In our Solid Waste Management, our total revenues are about $2.7 million dollars up
about $127,000 over last year. We are looking at spending $215,000 a year projected
for debt service for the new landfill cell. The City paid off a small certificate of obligation
and this savings and the increase of 4% will fund this. This year we are purchasing a
$330,000 scraper. The biggest expense of $1,129,000 system improvement for a new
landfill cell and new downstream monitoring wells that TCEQ is requiring us to have in
place.
The 4% increase in solid waste fees on a basic residential will increase from $15.85 to
$16.48. All other rates for commercial accounts will increase in comprehensible
percentages.
In our Water and Sewer Fund the total projected revenues is $5.7 million dollars in the
coming year. We are not including a rate increase this year. We paid some certificate
of obligations which freed some money that had been allocated to debt service that is
now going to fund the 1.8% increase we are seeing this year in our sewer costs and a
little of 3% on water. Our greatest area of concern right now is the Water and Sewer
City Council Minutes September 6, 2007 Page 3 of 7
System Improvement Fund. This is where we've been doing things such as drilling new 125
water wells and rebuilding lift stations. The capital project list we are developing is
significantly larger than what is available in this fund so we will probably have to look at
certificates of obligation or some type of debt project in the future.
Our other funds this year, the funding for our Bio-terrorism grant has been cut and this
program will soon end. The State Department of Health Services will be assuming
responsibility for the operation of this program in Hale County. We are getting funds for
an additional position in the immunization grant program.
Our Service Cer~rter continues to be problematic; we are doing some restructuring to
take one more shot at making it viable. In evaluating this operation it is apparent that it
actually provides more than just vehicle maintenance work because it handles record
keeping and communication services for several departments.
In the Hotel MotEll Tax Fund, Eric continues to work our CVB and Main Street programs.
We feel like we are making some progress. They want to take some steps that will
have some impact on potential uses at the Civic Center in terms of booth rental.
The Fair continues to be booked regularly, we are moving some $31,000 year and that
allocation has been the same for a few years.
Our overall goal is to improve services and continue to take our City in a position to take
advantage of opportunities for any growth in our community.
Councilmember Trusler moved to open a public hearing regarding the 2007-2008 City
of Plainview budget. The motion was duly seconded by Councilmember Tipton. Mayor
Anderson, C;ouncilmembers Tipton, Pena, Bertsch, Trusler and Dunlap voted "for" the
motion. Councilmember Waggoner was not present. The motion carried.
Mayor Anderson for public comment.
Charles Starnes 'who teaches public finance at Wayland Baptist University asked about
the recycling program. It shows $71,250 in expenditures. He asked what happens to
the recycling matter and if that generates any revenues? Mr. Ingham advised that this
year our revenue from recycled materials is about $80,000 but we had budgeted about
$64,000 this year. In 2005-2006 we showed expenditures of $57,000 and revenues of
$66,000. In our budget numbers for the year coming year we show $65,000 in
revenues and $71,000 in expenditures. We are pretty close to breaking even.
There was no other public comment. Councilmember Tipton moved to close the public
hearing. The motion was duly seconded by Councilmember Dunlap. Mayor Anderson,
Councilmembers Tipton, Pena, Bertsch, Trusler and Dunlap voted "for" the motion.
Councilmember Waggoner was not present. The motion carried.
The public hearin~,1 was closed at 12:10 p.m.
Mayor Anderson announced that a vote on the budget will be held today and on
September 11, 2007 at 7:00 p.m.
t,ity council Minutes September 6, 2007 Page 4 of 7
126
Greg Ingham, City Manager presented for consideration Ordinance No. 07-3485, an
Ordinance Adopting and Approving the Budget for the Fiscal Year beginning October
1, 2007 and terminating September 30, 2008 and making such appropriations for each
department, project and account; severability clause; cumulativeness clause; conflicts
clause; effective date. Mr. Ingham stated this is basically the ordinance adopting the
budget on first reading.
Mayor Anderson asked for public comment. There was no public comment
Councilmember Dunlap moved to approve Ordinance No. 07-3485 on first reading. The
motion was duly seconded by Councilmember Nash.
Mayor Anderson asked for council comment. Councilmember Bertsch expressed
concern over gas costs at the service center. Mr. Ingham stated he talked to John
Berry and he stated the equipment stored in the building is stored with water and we are
required to keep gas on in building. They have initiated discussions on options.
Councilmember Dunlap expressed concern with discussions with White Energy's use of
effluent water. Mr. Ingham stated they had again begun discussions on the use of
effluent water.
Councilmember Pena asked if the equipment replacement fund was being repaid back
by the programs. Mr. Ingham stated yes long term items are being purchased through
the equipment replacement fund. We have line items in the budget to pay for this. The
Police Department currently is paying $82,185 and its payment to the fund will increase
to $120,400 for the additional seven vehicles being purchased in the coming budget.
Mayor Anderson asked for a vote on the matter. The motion carried unanimously.
Greg Ingham, City Manager presented for consideration an action to vote for
ratification of the budget that raises property tax revenue within the City of
Plainview, Texas. He stated HB 3195 passed by the Texas Legislature basically
said that if we raise more than .01 ¢ in revenue you have to have a vote to ratify
that part of your budget that raises property tax revenue. This does not have to
be an ordinance and does not relate to the truth in taxation laws. It also requires
a full cover page that shows`we generated $20,190 more in property tax revenue
this year just because of new property that went onto the tax roll.
Mayor Anderson asked for public comment. There was no public comment.
Councilmember Truster moved to ratify the property tax increase reflected in the
budget for Fiscal Year 2007-2008. The motion was duly seconded by
Councilmember Pena and carried by unanimous vote.
Mr. Ingham presented for consideration upon first reading Ordinance No. 07-
3486, an Ordinance Levying Municipal Ad Valorem Taxes for the City of
Plainview, Texas for the Year 2007, and Directing the Assessment and Collection
Thereof; severability clause; cumulativeness clause; conflicts clause; and
effective date. The proposed tax rate for Fiscal Year 2007-2008 is $0.53420
which is slightly lower than last year's rate of $0.53490. The rollback rate for this
City Council Minutes September 6, 2007 Page 5 of 7
127
year was :0.579500 and we are well below that and it is our recommendation
that you seat the tax rate of $0.53420 which is what this ordinance does.
Mayor Anderson asked for public comment. There was no public comment.
Mayor Anclersan moved to approve Ordinance No. 07-3486 upon first reading.
The motion was duly seconded by Councilmember Tipton and carried by
unanimous vote.
Mr. Inghann presented for consideration upon first reading Ordinance No. 07-
3487, an Ordinance of the City of Plainview, Texas, Amending Section 22-32
entitled "F:efuse Collection Fees; Water Termination" of the Code of
Ordinances of the City of Plainview, Texas; severability clause; cumulativeness
clause; conflicts clause; effective date. He stated this sets the garbage fee rate
4% higher. A rc~sidential customer would see an increase from $15.85 to $16.48.
All others users would see an increase of 4%. He stated it is his
recommendation that the Council adopt this ordinance.
Mayor Anderson asked for public comment. There was no public comment.
CouncilmerY~ber~ Nash moved to approve Ordinance No. 07-3487 on first reading.
The motion was duly seconded by Councilmember Waggoner and carried by
unanimous vote.
Mr. Ingham, City Manager presented for consideration upon first reading
Ordinance NO. 07-3488, an Ordinance of the City of Plainview Amending Ordinance
No. 06-346F3 to Appropriate Funds in the General Fund and Various Revenue and
Capital Funds P~.~rsuant to Section 5.07 (A) of the Plainview City Charter Allowing For
Supplemental Appropriations in the 2006-2007 Budget; Cumulativeness Clause;
Conflicts Clause; severability Clause; And Effective Date. He stated we have
discussed most amendments in our budget process. We are formalizing those
amendments with this ordinance as follows:
1. Trans,ferrirag $250,000 out of General Fund into capital improvement;
2. Transferring $250,000 into equipment replacement;
3. Transferring $175,000 into economic development fund;
4. $16,000 and $8,000 for City Hall Heating and Cooling System and some
Chamber of Commerce Building improvements;
5. $10,500 for custodial equipment;
6. $6,000 for building maintenance, $6,000 for heating and air conditioning and
$5,000 for printers for library.
7. $19,000 special services for solid waste department;
8. $124,000 for sewer system improvements -completion of three lift station
projects from previous fiscal year;
9. $25,000 for water distribution department for replacement of meters that were not
functioning properly and setting of fire lines;
10. $12,500 for finance building repairs -part of improvements of last year did not
get finished and completed this year.
Mayor Anderson asked for public comment. There was no public comment.
Counc ilmember Tipton moved to approve Ordinance No. 07-3488 upon first reading.
City Council Minutes September 6, 2007 Page 6 of 7
128 The motion was duly seconded by Councilmember Truster and carried by unanimous
vote.
The Council and staff reviewed the agenda for the City Council meeting of September
11, 2007.
There being no further business, Mayor Anderson adjourned the meeting at 1:00 p.m.
t/ ~
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Belinda Hinojosa
City Secretary `~
City Council Minutes September 6, 2007 Nage i or ~