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CM 1992-08-14 MINUTES OF AUGUST 14, 1992 The City Council of the City of Coppell met in a Special Called Session at 1:00 p.m., Friday, August 14, 1992 in the Rotary Room of Town Center, 255 Parkway Boulevard, Coppell, Texas. The following members were present: Mark Wolfe, Mayor ._ Bill Smothermon, Mayor Pro Tem Peyton Weaver, Councilman David Thomas, Councilman Tom Morton, Councilman Lanny Mayo, Councilman Ron Robertson, Councilman Jim Garrison, Councilman Also present were City Manger Alan D. Ratliff, City Secretary Dorothy Timmons, Assistant City Secretary Linda Grau, City Attorney Lawrence W. Jackson, City Manager/Finance Director Frank Trando, Assistant City Manager/Personnel Director Vivyon V. Bowman, Director of Public Works Steve Goram, Director of Planning and Community Services Gary Sieb, Police Chief Neil McKinney, Fire Chief Clay Phillips, and City Engineer Ken Griffin. 1. Call to Order Mayor Mark Wolfe called the meeting to order. 2. Review and discussion of all matters related to Budget for Program of Service for FY 1992-93. City Manager's Opening Remarks City Manager Alan D. Ratliff made several opening remarks, which included the review of capitol needs for the city and the bonds. Also discussed was the growth in water accounts for the past 5 years and single family permits issued. These water accounts are used to make population projections. Mr. Ratliff stated that single family building permits had increased 14% this past year. Also discussed were population projects, population versus property values and the accomplishments for the past year. Hand outs were available to reflect project accomplishments for the fiscal year 1991-1992. Also made available was a report of the Sales Tax Revenue for Fiscal Year 1991-1992. Mr. Ratliff referred to programs and services, with a base budget of $6,990,882.00, a 1.76% increase over last year. He stated that the estimates of residents to be served by the budget would be 21,183. Mr. Ratliff then referred to the general fund expenditure summary, which shows a per capita expenditure of $342.87 per capita this year, and by next year, with the base, if approved, be $330.00 per capita. Also introduced was the number of citizens to employees, operations and maintenance tax support, and the general fund expenditure summary, a comparison of the two tax rates split between O and M and Debt service over the years, projected through the year 1995. Mr. Ratliff also showed the debt service on a monthly amount, and what people are paying _ per month on property taxes, and referred to keeping city taxes in perspective in reference to the needs and wants of the city. Finance Committee Finance Committee report was given by Mayor Pro Tem Bill Smothermon. Mayor Pro Tem Smothermon referred to the vacancy of personnel throughout the departments that have not yet been filled. Of the 4.7 cent increase that the staff is proposing, 3/4 cents is for O and M, and 3.95 cents is for debt service. CM081192 Page 1 of 5 For example, a $100,000 home will be paying $47.00 more in taxes, which $39.50 of that is for debt service and $7.50 is for O and M. Mayor Pro Tem Smothermon referred to the supplement is the bringing on of a new ambulance for the Fire Department that could be funded at a rate of $2.50 per household per month. The Finance Committee also requested consideration of increasing permit fees on residential construction. Also discussed was the building reserve. Referring to the general fund, which was $1,073,000 for the bond rating. Finance Director Overview of Special Revenue Fund The overview of the Special Revenue Fund was discussed. Roll back was also discussed and it was determined that the rate would have to go up to 78.608 before it would trigger the potential of a roll back. Health insurance coverage, estimated revenue and proposed expenditure for all funds, estimated revenues, and proposed expenditures special revenue funds were also discussed. Finance Director Overview of 5-Year Plan The Five Year Capitol Improvement Plan was previously discussed at the July 28, 1992 City Council Meeting. Frank Trando, Deputy City Manager/Finance Director stated that there is $2,525,000 in general obligation bonds, including approximately $100,000 going to Parks and Recreation type of events, and $120,000 for streets. The site plan for the new library was displayed with an architect rendering of what the library would look like, along with a detailed drawing. A citizens meeting will be held on Wednesday, August 26, 1992, to convey to the citizens what the architect came up with based on the questionnaire sent to them. Finance Director Overview of Water and Sewer Fund Water and sewer revenue bonds were discussed, along with the Certificate of Obligation for the fire administration building, and constructing and improvements for the city's streets and drainage and the debt service fund for fiscal year 1992-1993. General Fund - Frank Trando Frank Trando, Deputy City Manager/Finance Director, stated that out of the forecasted $1,093,610 fund balance, $104,978 is earmarked from E-911 revenue. The $988,632 is unrestricted, unappropriated and available. The fund balance is a reserve for emergency purposes. It is forecasted that the budgeted expenditures will be all spent. Out of the $90,000 that they are estimating in 911 money, $17,100 goes for line services and maintenance. Mr. Trando also stated that the present GTE franchise rate for the City is 2%. GTE is anticipating a 4% rate which is what GTE receives from most of the other cities. Approximately twenty (20) cities were surveyed and all but 3-4 were found to also have the 4% franchise rate. Regarding building permits, Mr. Trando stated that if house permits were raised approximately 12 1/2 cents per square foot, fence permits by $10, irrigation permits by $10, and swimming pool permits by $50 dollars, year to date, the City would receive an additional $106,000. This does not reflect the additional monies from office, retail, restaurants, industrial and such. A survey in three categories for a permit fee comparison included a 1500 square foot house, 2500 square foot and 3500 square foot house. In the 1500 square foot category, Coppell is number 1 in 2500 square foot, Coppell is number 2; and at 3500 square feet, Coppell is number 6. CM081192 Page 2 of 5 Mayor Wolfe then adjourned the meeting at 3:45 p.m. for 15 minute break. He reconvened at 4:00 p.m. Open Session (Open to the Public) Mayor Wolfe called the meeting to order. General Fund Department Overview _ The following Directors gave reports in their respective departments: Alan Ratliff City Administration Vivyon Bowman Personnel/Court Frank Trando Legal Services, Finance, Combined Services, Purchasing, and Tax Dorothy Timmons City Secretary Gary Sieb Library, Building Inspection, and Planning Neil McKinney Police Clay Phillips Fire Ken Griffin Engineering Steve Goram Public Works Mayor and Council Budget (Economic and Business Development-Richard Johnson) Economic and Business Development Chairman Richard Johnson and member Larry Singilton made a presentation to the Council and presented the proposed budget FY 92/93. Chairman Johnson stated that there was a reduction from last year's $48,000, to this year's $46,000 which is a reflection of donations funds not tracking as they anticipated that they would. They predict that in FY 92/93 they will receive $4,000 from donation funds. _ In a continuing effort for Public Relations, the Economic and Business Development Board is planning on redoing the City's brochure which is pretty well depleted. They believe there is a different approach that they need to take with this year's brochure; it needs to be more expansive and larger. The current brochure reflects a more "folksy" image, and they would like to project commercial interest for the new brochure. It was stated that $24,600 of the Response Service Contract was spent by the Economic Development Board in FY 91- 92 with the remainder being used for public relations. Regarding the Economic Development Recall Response Services Contract, the idea of hiring someone on a part-time basis was introduced. This individual would assist in responding to requests for proposals that are received from various companies relocating. Currently, three to four requests for proposals come in per month. Chairman Johnson also stated that several categories have been reduced in order to cut the budget. Membership dues have been lowered from $3500 to $1500, travel from $4000 to $0, postage from $2700 to $1500, miscellaneous expenditures from $300 to $0, business meals from $1146 to $250, advertising from $16,354 to $0, and public relations from $12,000 to $11,100. Mayor Pro Tem Smothermon requested the $5000 budgeted in the Mayor and City Council Budget for Coppell Chamber of Commerce be used for the _ Economic and Business Development Budget. City Manager's Introduction to General Fund Supplements Alan Ratliff, City Manager, introduced the supplements and asked for the support for these supplements. General Fund Supplementals The following supplementals were introduced to Council and made by the following Department Directors: CM081192 Page 3 of 5 Clay Phillips - Second Ambulance Company Ken Griffin - CADD System, Mapping Vivyon Bowman - Telephone Steve Goram - Boom/Mower, Park Maintenance Crew Dorothy Timmons - Postage Machine Neil McKinney - Police Overtime Frank Trando - Custodians Alan D. Ratliffe - Mud Absorption Mayor Wolfe adjourned the meeting at 5:30 p.m. for a 1-hour dinner break and reconvened at 6:30 p.m. Open Session (Open to the Public) Mayor Wolfe called the meeting to order. Executive Session (Closed to the Public) ES3-A Article 6252-17, Senate Concurrent Resolution Number 83 Discussion with City Attorney concerning privileged communications between attorney and client. ES3-B Article 6252-17, Section 2(g) Discussion concerning personnel 1. Assignment of Department Heads and Directors Mayor Wolfe convened into Executive Session at 6:35 p.m. as allowed under the above stated articles and adjourned the Executive Session at 7:15 p.m. and opened Regular Session. Open Session (Open to the Public) Mayor Wolfe - Council Discussion and Consensus on City Manager's Proposed Budget FY 92-93 Following discussion of the following items, it was the consensus of the City Council to approve the following: A. A 4% franchise rate increase to GTE. B. Not to become a part of the Metrocrest Chamber of Commerce, purely for financial reasons. C. Approve $35,000 for the Economic and Business Development budget. D. Approve the membership of the North Texas Commission for $1500 which will be taken from the contingency fund. E. To wait on making a decision if the City should use the Poison Control Center, which would have to come out of the contingency fund. Poison control is a service the City uses, and currently there is a chance that the City will switch over to use the services provided by Trinity Medical Center. F. To move $5000 from Boards and Commissions Appreciation to contingency, leaving $300 for Boards and Commissions Appreciation G. It was recommended to increase house permits up to $250 a piece across the board, increase fence $25, increase irrigation $25, and all water features (swimming pools, spas, and above ground pools) by $50. Approximately $140,000, year to date, would increase revenues with these additional monies. The $250 for house permits was raised to $350 to accommodate the additional funds needed for the ambulance and the fund balance. CM081192 Page 4 of 5 H. To use 97.5 as the tax collection rate, which this percentage reflects approximately $35,000 to be added to the budget. I. To keep the tax rate between 69 cents and 70 cents. With the $140,000 from the raised fees, and the $35,000 from the collections, the total, $175,000, calculates the tax rate to be .7025. J. To lower the Fund Balance by $0. This will keep the tax rate at .6975. This will increase to .6995 to achieve the ambulance, the CADD system, mapping system, and police overtime. The current tax rate is .673. K. That three (3)%, calculated to be $43,600, be determined in the manner the City Manager deems appropriate for the merit/market increase. L. The tax rate will support the Fire Department's request for the second ambulance. $90,000 from the fund balance and $21,000 from increased revenues would result in $111,500 for the ambulance. An additional $37,000 in E911 will be used to fulfill the balance for the purchase for ambulance, leaving the fund balance unmarked. M. To take what is needed out of the Mayor and Council contingency to provide for the requested funds for police overtime, and Engineering's CADD and mapping system. It was discovered that if the tax rate is brought up to .6995, the ambulance, CADD system, mapping system and police overtime could be achieved. The Council approved the .6995 tax rate. There being no further business to come before Council, the meeting __ was adjourned. ATTEST: Mark Wolfe, Mayor Dorothy Timmons,City Secretary CM081192 Page 5 of 5