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The Plainview City Council met on September 9, 2008 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 4:45 p.m. on September 5, 2008. Mayor John C. Anderson
presided. Councilmembers present were: Kelvin Tipton-District 1, Cathy Waggoner-
District 2, Belinda Pena-District 3, Wendell Dunlap-District 6 and Roland Nash-District 7.
Councilmember John N. Bertsch-District 4 and Ron Truster-District 5 were absent.
Staff members present were: Greg Ingham-City Manager, Leslie Pearce-City Attorney,
John Castro-Director of Community Services, Will Mull-Police Chief, Eric Turner-Main
Street Coordinator, Dale Simpson-Director of Civil Service and Belinda Hinojosa-City
Secretary.
News Media Representative: Tommy Young-Plainview Daily Herald
Mayor John C. Anderson delivered the invocation and led in the Pledge of
Allegiance.
Councilmember Dunlap moved to adopt the consent calendar. The motion was duly
seconded by Councilmember Pena and carried by unanimous vote. Items approved on
the consent calendar included approval of the minutes of August 26, 2008 and
September 4, 2008; and granting of excused absences to Councilmembers John N.
Bertsch and Ron Truster.
Greg Ingham, City Manager presented information regarding the proposed tax increase.
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 City
saw a significant increase in 2006-2007 during the construction of the ethanol plant. At
the time that started winding down, the City saw the sales tax start to decrease. It was
about that time that the alcohol sales began and we began to see that number come
back up. 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.
2) Plainview Hale County Health Department -budget $427,690 which has seven
full time employees.
3) Parks Department -budget $714,110 which has nine full time employees and
two part time employees.
4) Police Department -budget $3,076,215 which has 42 full time personnel and
seven crossing guards.
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
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• 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
He stated the general fund is coming in under budget which is giving us an opportunity
to fund some items requested for next years budget with this 2007-2008 money. In the
coming year, the City is looking to fund other capital improvement items. The City is
replacing five police cars, two radio consoles, firefighter's bunker gear, a 1994
ambulance needs to be replaced and a loader in the street department.
The City is looking at a significant increase in fuel cost which is up 33% overall and 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 equipment replacement fund, and transfer $150,000 into the economic development
which includes the $50,000 to be allotted to Wee Care.
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.
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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
equipment replacement fund, transfer $100,000 to Street Improvement, and transfer
$150,000 into the economic development which includes the $50,000 to be allotted to
Wee Care.
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 %2 cent
• Increase pay for sworn police and fire by an additional 1 %2 to 2% due to
competitive market.
Councilmember Nash moved to open a Public Hearing on the proposed tax increase.
The motion was duly seconded by Councilmember Tipton and carried by unanimous
vote.
Mayor Anderson asked for public comment.
Dwane McGuire of 1114 Kokomo stated that everyone in the City should have to pay
taxes. There are numerous households that have more than one family living in them.
If they lived in their own house, the City would have more income. He also stated the
City had more give aways in this town. He also expressed concern about the number of
City vehicles.
Councilmember Tipton moved to close the public hearing. The motion was duly
seconded by Councilmember Dunlap and carried by unanimous vote.
Mayor Anderson closed the public hearing at 7:37 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 three 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
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mentioned that the City has received the highest bond rating that a City our size is going 237
to get having received an A-2 rating.
The total budgeted expenditures for Fiscal Year 2008-2009 is $22,893,760 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 operating budget for this fund is $2,824,565.
There are 21 full time employees which includes the Recycle Center and collection.
The Solid Waste Management Fund revenues for Fiscal Year ending September 30,
2009 are $2,844,000. The total Solid Waste Management Fund expenditures including
capital system improvements 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.
Water and Wastewater Utility Fund -The following are the major departments under
this fund:
1) Water Production -budget $1,523,290 which has seven full time employees.
2) Wastewater Collection -budget $254,820 which has three full time employees.
3) Water Distribution System -budget $562,160 which has six fulltime employees.
4) Water Reclamation Plant -budget $884,335 which has five full time employees.
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
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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 Dunlap moved to open the Public Hearing regarding the 2008-2009
City of Plainview Budget. The motion was duly seconded by Councilmember Waggoner
and carried by unanimous vote.
Mayor Anderson asked for public comment. There was no public comment.
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 7:58 p.m. and announced that a vote on the budget will be
h21d 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.
Mr. Ingham, presented for consideration and to take necessary action regarding voting
for Place 1, 2, 3 and 4 Board of Trustee Member on the Texas Municipal League
Intergovernmental Risk Pool Board of Trustees Election. Mr. Ingham stated the
Pool provides insurance for Texas cities. He currently serves on the board and he feels
the board has done a good job. The Council can vote for anyone on the ballot. He
stated that overall the board works well together and has success. If the Council
wishes, they may vote for the four incumbents or other candidates if they wanted to.
Mayor Anderson moved to vote for the incumbents for Place 1, 2, 3 and 4 in the Texas
Municipal League Intergovernmental Risk Pool Board of Trustee election. The motion
was duly seconded by Councilmember Nash and carried by unanimous vote.
There being no further business, Mayor Anderson adjourned the meeting at 8:02 p.m.
~~
Belinda Hinojosa
City Secretary
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