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HomeMy WebLinkAbout08 0904 minThe Cit~r Council met on September 4, 2008, at the Plainview Convention Center, 2902 227 West 4t Street, Plainview, Texas. The agenda for this meeting was posted in City Hall at 11:45 a.m. on August 29, 2008. Mayor John C. Anderson presided. Councilmembers present were: Cathy Waggoner-District 2, Belinda Pena-District 3, John N. Bertsch-District 4, Wendell Dunlap-District 6 and Roland Nash-District 7. Councilmember Kelvin Tipton-District 1 and Councilmember Ron Truster-District 5 were absent. Staff members present were: Greg Ingham-City Manager, Leslie Pearce-City Attorney, Will Mull-Police Chief, John Castro-Director of Community Services, Jack Keller-Budget Manager, Dale Simpson-Civil Service Director, and Belinda Hinojosa-City Secretary. Guests present were: Dwane McGuire and Charles Starnes News Media Representative: Tommy Young-Plainview Daily Herald Councilmember Cathy Waggoner delivered the invocation. Councilmembers Kelvin Tipton and Ron Truster were granted excused absences. Greg Ingham, City Manager presented information regarding the proposed tax increase He stated the general fund is coming in under budget. In the coming year, the City is looking to fund other capital improvement items. The City is replacing eve police cars, two radio consoles, firefighter's bunker gear, a 1994 ambulance needs to be replaced and a loader in the street department. The total revenue for the general funds is $10,995,315 of which $4,096,000 comes from property tax. At the time of the budget, interest was projected to be about $150,000 because of the Federal Reserve cutting rates. It may be feasible to increase that projection slightly and it could provide an opportunity for some modifications. The projected revenues for sales tax collection is $3,275,000. A few of the departments that are funded through the general fund are as follows: 1) Street and Traffic Safety -budget $1,139,920 which has 11 full time employees and 2 seasonal employees. This department handles the street seal coating, street sweeping, street patching and maintenance, unpaved street maintenance, curb and gutter repair and replacement, mosquito control ,traffic signs, traffic signals, street markings, school zone markings and signs, drainage ditches and waterways, and demolition of sub-standard buildings. 2) Plainview Hale County Health Department -budget $427,690 which has seven full time employees. It provided services to 9,980 individuals, administered 4,379 immunizations, issued 1,251 health cards, performed 289 environmental inspections and responded to 44 complaints. 3) Parks Department -budget $714,110 which has nine full time employees and two part time employees. It is responsible for the care of six baseball playing fields, three softball playing fields, 1 golf driving range, 2 soccer fields, six public restrooms, three multipurpose courts, two basketball courts, three multi-use City Council Minutes September 4, 2008 Page 1 of 6 22$ walking tracks, 1 tree nursery, two community buildings, two open sided. pavilions and one hike & bike trail 4) Police Department -budget $3,076,215 which has 42 full time personnel and seven crossing guards. Last year it had 14,898 calls for service with a 2.85 minute average response time and has 34 active assigned vehicles. 5) Fire/EMS -budget $2,875,015 which has 36 full time, personnel and has 12 fire units and 4 EMS units. He listed the following as services paid by the general fund: • 24 Hour Police Protection • 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 The general fund expenditures are $10,957,280 of which $2,875,015 is for Fire/EMS/Civil Service and $3,078,655 is for police. He stated the property tax revenue is $4 million of which does not even cover the cost for police and fire of approximately $6 million. The current tax rate for Plainview is $.5342 and the proposed tax rate for 2008-2009 is $.5685. Mr. Ingham presented a slide of thirteen cities with a population in the 20,000 to 25,000 range and the average tax rate for them is $.6644 which is above the City of Plainview's proposed tax rate. He presented the following tax rate information for fiscal year 2008-2009: Rollback Rate for 2008-2009 Fiscal Year $0.5742 Proposed Tax Rate for 2008-2009 $0.5685 Adopted Tax Rate for 2007-2008 $0.5342 Effective Tax Rate for 2008-2009 $.5216 The average taxable homestead value of a residence in the City of Plainview is $74,280. The cost under the current tax rate for 2007-2008 is $396.80 and the cost for the proposed tax rate is $422.28 which is an annual increase of $25.48 and a monthly increase of $2.12. He stated the City is looking at a significant increase in fuel cost which is up 25% in the General Fund. The budget includes a 3% COLA increase for all city employees. The City will transfer $250,000 into the capital improvement fund, transfer $150,000 into the City Council Minutes September 4, 2008 Page 2 of 6 equipment replacement fund, and transfer $150,000 into the economic development 229 which includes the $50,000 to be allotted to Wee Care. Councilmember Dunlap moved to open a Public Hearing on the proposed tax increase. The motion was duly seconded by Councilmember Waggoner and carried by unanimous vote. Mayor Anderson asked for public comment. Dwane McGuire of 1114 Kokomo Street stated he is a 50 year ex-grocery man and when needed to acquire a profit; he changed the price accordingly anywhere from 1 1/2% to 3%. He expressed concern over employee theft; unrealistic method of hiring - no supervision and no accountability; vehicles driven home; how equipment is treated and when someone tries to volunteer they are told they are not needed. Charles Starnes, Wayland Baptist University Professor stated he teaches public finance. He asked what the basis was for the 3% COLA for City employees? Budget Manager Jack Keller advised the City looks at several factors, one of which is the CPI Index which is nearly 5%. He stated regarding the tax rate increase the City needed to take a more prudential approach and to ride out and see how everything goes. Mr. Ingham stated the City is reviewing its vehicle utilization. He said that staff feels the interest projections may be a little conservative and could increase projections slightly given current conditions. He stated three possible options have been suggested: • Money to go to street improvements • Reduce tax rate increase by % cent • Increase pay for sworn police and fire by an additional 1 %2 to 2% due to competitive market. Councilmember Nash moved to close the public hearing. The motion was duly seconded by Councilmember Pena and carried by unanimous vote. Mayor Anderson closed the public hearing at 12:30 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 18, 2008 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 proposed tax rate will be held on September 23, 2008 at 7:00 p.m. at City Hall, 901 Broadway. Greg Ingham, City Manager presented information regarding the 2008-2009 City of Plainview Budget. Since he had already discussed the general fund, he did not go over that part again. He stated the rising cost of energy is hitting cities everywhere. The municipal price index is showing a 7.4% increase. The City pays for all services and does not receive any state funding. In 2007-2008, the City brought in two new water wells, working with the Canadian River Municipal Water Authority, completed the hike and bike trail, working on new landfill cell, bulldog field, Broadway Park and replace lights at softball field. He also mentioned that City Council Minutes September 4, 2008 Page 3 of 6 230 the City has received the highest bond rating that a City our size is going to get having received an A-2 rating. The total budgeted expenditures for Fiscal Year 2008-2009 is $22,836,820 which is up from last year. The budgeted revenues for major operating funds (General Fund, Solid Waste Management Fund, and Water & Sewer Fund) for fiscal year ending September 30, 2009 is $19,719,415. The budgeted expenditures for major operating funds (General Fund, Solid Waste Management Fund, Water & Sewer Fund, and Debt Service) for fiscal year ending September 30, 2009 is $19,632,068. Solid Waste Management Fund -The budget for this fund is $2,824,565. There are 21 full time employees which includes the Recycle Center and collection. It serves approximately 7,000 households and 800 businesses. It covers the loan-a-truck program. Over 30,000 tons of solid waste are disposed each year. The Solid Waste department has a mulching and composting operation. It has had zero violations since opening in 1992. The Solid Waste Management Fund revenues for Fiscal Year ending September 30, 2009 are $2,844,000. The Solid Waste Management Fund expenditures for fiscal year ending September 30, 2009 is $3,639,565. He is proposing a 5% increase in the Refuse Collection Fee schedule for Fiscal Year 2008/2009. Class I. Residential Current Fee 5% Increase One Residential Unit $16.48 $17.30 Two Residential Units on One Water Meter $32.96 $34.60 Three Residential Units on One Water Meter $49.44 $51.90 Four Residential Units or Apartment House or Trailer Park on One Water Meter with Three Yard Container $65.92 $69.20 Water and Wastewater Utility Fund -The following departments are under this fund: 1) Water Production -budget $1,523,290 which has seven full time employees. The plant operates 24 hours a day, 7 days a week, 365 days a year. It has 6 elevated tanks with capacity of 1,950,000 gallons, six ground storage tanks with capacity of 5,650,000 gallons, 14 wells with capability of producing 10,594,000 gallons per day, lake water -capable of treating 4.2 million gallons per day, total water -capable of producing 14,784,000 gallons per day, average daily flow is 4.5 mgd and maximum daily usage is 9.6 mgd. 2) Wastewater Collection -budget $254,820 which has three full time employees. This department is responsible for approximately 136 miles of sewer mains, City Council Minutes September 4, 2008 Page 4 of 6 sewer main repair, weekly preventative sewer main maintenance to avoid problems, close contact with plumbers and homeowners, sewer line smoking to detect leaks, and operate sewer jet machines and operate camera units for video inspections. 3) Water Distribution System -budget $562,160 which has six fulltime employees. This department is responsible for 194 miles in total water mains, water main repair; water main construction, valve and hydrant maintenance and repair, meter testing and replacement, and major repairs on well stations. 4) Water Reclamation Plant -budget $884,335 which has five full time employees. The wastewater treatment plant has a capacity of 3.3 MGD. This department is responsible for eight lift stations. The plant produces 2000 tons of sludge annually, and 712 million gallons annual production of treated effluent. The plant personnel are responsible for all maintenance and repair of lift stations. The Water and Sewer Fund Revenues for Fiscal Year ending September 30, 2009 is $5,890,300. The Water and Sewer Fund Expenditures for Fiscal Year ending September 30, 2009 is $5,069,075 operating and $781,460 debt service and $561,000 system improvements for a total of $6,411,535. The current residential water rate for Plainview for 5,000 gallons is $18.45 and $26.00 for 10,000 gallons. The proposed rate for 5,000 gallons is $19.40 and $27.35 for 10,000 gallons. Mr. Ingham presented a slide of thirteen cities with a population of 20,000 to 25,000 and the average water rate for 5,000 gallons is $24.68 and $39.68 for 10,000 gallons which are above the City of Plainview's proposed rates. The current residential sewer rate for Plainview for 5,000 gallons is $15.25 and $22.25 for 10,000 gallons. The proposed rate for 5,000 gallons is $16.00 and $23.35 for 10,000 gallons. Mr. Ingham presented a slide of thirteen cities with a population of 20,000 to 25,000 and the average sewer rate for 5,000 gallons is $22.11 and $33.47 for 10,000 gallons which are also above the City of Plainview's proposed rates. He presented a slide which showed that the combined impact of fee and tax increases on an average homestead using typical winter consumption would be a monthly increase of $2.67 for water, sewer, and garbage and a monthly increase of $2.12 for taxes. He also mentioned that the money for the HOME grant is in there, which is to be used to replace five substandard houses; we continue to work on the service center and how to fund; with the increase in hotel motel tax revenue the City is looking to put more into tourism; and the Fair Theatre continues to remain pretty active. Councilmember Bertsch moved to open the Public Hearing regarding the 2008-2009 City of Plainview Budget. The motion was duly seconded by Councilmember Dunlap and carried by unanimous vote. Mayor Anderson asked for public comment. Charles Starnes complemented Mr. Ingham on his presentation and stated it was very thorough. He asked what the interest balance was. Mr. Ingham advised that the Water & Sewer Fund interest for 2008-09 is projected to be $75,000. He also asked for the balance in the contingency funds. Mr. Ingham advised the Water & Sewer Fund has 231 City Council Minutes September 4, 2008 Page 5 of 6 232 $2.9 million; Water & Sewer System Improvement Fund - $20,000; Solid Waste - $1.5 million and Solid Waste System Improvement $530,000 and General Fund - $6.6 million for a total of $10 million to $11 million in the contingency fund. Mr. Starnes asked why some of this could not be used instead of a tax increase. Mr. Ingham advised that the City was able to acquire a 3.5% rate for debt service while other entities paid 4.1 % for their debt. He also mentioned that a City in the metroplex laid off 27 city employees. He stated it was very important to maintain adequate reserves to make sure Plainview is competitive in the future. The City has not historically seen major growth increases so it's important to look at the long haul. Councilmember Bertsch moved to close the public hearing. The motion was duly seconded by Councilmember Waggoner and carried by unanimous vote. Mayor Anderson closed the public hearing at 12:58 p.m. and announced that a vote on the budget will be held on September 18, 2008 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 23, 2008 at 7:00 p.m. at City Hall, 901 Broadway. The Council and staff reviewed the agenda for the City Council meeting of September 9, 2008. There being no further business, Mayor Anderson adjourned the meeting at 12:59 p.m. Belinda Hinojosa City Secretary City Council Minutes September 4, 2008 Page 6 of 6 ~l absent. The Cit~r Council met on September 4, 2008, at the Plainview Convention Center, 2902 West 4~ Street, Plainview, Texas. The agenda for this meeting was posted in City Hall at 11:45 a.m. on August 29, 2008. Mayor John C. Anderson presided. Councilmembers present were: Cathy Waggoner-District 2, Belinda Pena-District 3, John N. Bertsch-District 4, Wendell Dunlap-District 6 and Roland Nash-District 7. Councilmember Kelvin Tipton-D~rict 1 and Councilmember Ron Truster-District 5 wPrP Staff members Attorney, Will Keller-Budg~ Secretary. Guests ~reg Ingham-City Manager, Leslie Pearce-City John Castro-Director of Community Services, Jack pson-Civil Service Director, and Belinda Hinojosa-City Dwane McGuire and Charles Starnes News Media Representative: Tommy ung-Plainview Daily Herald Councilmember Cathy Waggoner ~I r the invocation. Councilmembers Kelvin ~rusler were granted excused absences. Greg Ingham, City Ma t information regarding the proposed tax increase. He stated the general is coming in under budget. In the coming year, the City is looking to fund other ca ital improvement items. The City is replacing five police cars, two radio consoles, firefighter's bunker gear, a 19 mbulance needs to be replaced and a loader in the street department. The total revenue for the general fund of which $4,096,000 comes from property tax. At the time of the bu i projected to be about $150,000 because of the Federal Rese t may be feasible to increase that projection slightly and it could o portunity for some modifications. The projected revenues for sales tax ti s $3,275,000. A few of the departments that are f nded through the general fund are as follows: 1) 2) 3) Street and Traffic Safety -budget $1,139,920 which 11 full time employees and 2 seasonal employees. This department the street seal coating, street sweeping, street patching and mainte a ed street maintenance, curb and gutter repair and replacement, rot ,traffic signs, traffic signals, street markings, school zone i ns, drainage ditches and waterways, and demolition of sub b . Plainview Hale County Health De get $427,690 which has seven full time employees. It provided se s ,980 individuals, administered 4,379 immunizations, issued 1,251 he cards, performed 289 environmental inspections and responded to 44 co plaints. Parks Department -budget $714,110 which has nine full time employees and two part time employees. It is responsible for the care of six baseball playing fields, three softball playing fields, 1 golf driving range, 2 soccer fields, six public restrooms, three multipurpose courts, two basketball courts, three multi-use 233 City Council Minutes September 4, 2008 Page 7 of 6