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CM 1993-08-13 FISCAL YEAR 1993-94 BUDGET WORKSHOP FRIDAY, AUGUST 13, 1993 MINUTES The City Council of the City of Coppell met for a Budget Workshop on Friday, August 13, 1993, at 2:00 p.m. in the Rotary Room of Town Center, 255 Parkway Boulevard, Coppell, Texas. The following members were present: Tom Morton, Mayor Ron Robertson, Mayor Pro Tem Peyton Weaver, Councilmember Flo McFadden Stahly, Councilmember Mitch Reitman, Councilmember Lanny Mayo, Councilmember Jim Garrison, Councilmember Also present were Interim City Manager, Frank Trando, Acting Finance Director Alan Johnson, City Secretary Dorothy Timmons and City Attorney's representative Robert Hagar. Mayor Morton called the meeting to order at 3:15 p.m. He expressed his thanks to the Finance Committee and the Finance Department for all their work in bringing forward a budget for 1993- 94. Interim City Manager, Frank Trando, made his opening remarks. He explained that the budget is based on 0.6895 tax ram, which is a .01 decrease from last year. The Directors ranked the supplements and the Finance Committee then narrowed them down. All of the supplements can be funded in the proposed budget and still reduce the fund balance by $100,000.00. Mr. Trando then stated that water and sewer rates may have to be increased in February. Tax Assessor/Collector, Chad Beach, discussed Homestead Exemption and explained the deadline is April 30th. Mayor Morton asked staff to look at this at mid-year. Mr. Beach explained that the ordinance can be done at any time, however, the effective date has to be April 30th for that tax year, and the percentage can range from one percent to twenty percent, the minimum has to be at least $5,000 off of the appraised value. Finance Committee opening remarks were presented by Mayor Pro Tern Robertson who stated that the Finance Committee agreed to recommend the base budget with the tax rate being lowered by a penny to 0.6895. The Committee used a 97.5% collection rate. Last year the Council granted 3 % compensation with 2 % brought back at mid-year. This year the Committee chose to defer recommendation and look at it at this workshop. The Finance Committee is recommending 5 % now and a market survey in April. If the survey shows that staff is still below step, the Finance Committee would support an additional two percent or whatever is needed to bring them up to level with our surrounding cities. The Finance Committee made two recommendations regarding the supplementals on page 4.1. Seventeen additional employees were requested this year. The Finance Committee proposes to hire one dispatcher, three patrol officers and building maintenance workers. In addition, the Committee recommends the allocation of funds to purchase the balance, consisting of boom trucks and pickup trucks, which Council will decide at another time. The Finance Committee and staff have a difference of opinion on whether to go with internal building maintenance or not. Mayor Pro Tem Robertson stated that the Finance Committee's recommendation is to fund the base budget with a five percent increase and to fund the supplementals on 4.1, but, the maintenance workers are contingent on the rest of the Council's wishes. Acting Finance Director Alan Johnson began his presentation by stating that the City is looking at just under 6% growth between 1993 and 1994, and tax value increased about 13.48% this year. He continued his presentation by stating that the collections for this year are 98.09%, the assessed valuation is $1,133,906.263, and, with a tax rate of 0.6895, revenues should be $7,818,284. The expected collection rate is 97.5% so tax collection should be $7,622,827, which will be split between the General Fund and the Debt Service Fund. We allocated $4,782,978 to the General Fund and $2,839,848 to the Debt Service Fund. Mayor Pro Tem Robertson stated that we have a lot of expenditures coming up in the next few years, referring to curb improvements and street improvements associated with ADA requirements for Coppell in the amount of $400,000. He feels that we should start budgeting for the improvements now. Discussion by Council of the Mayor and Council budget followed with Councilmember Weaver stating that he doesn't want to continue membership in NTC. Discussion followed. * It was the consensus of the Council to exclude Office on Aging and North Texas Commi~ion from Council's Budget for the 1993-94 fiscal year. Mayor Morton made the recommendation to get "legal opinion" on designated items in the budget, such as Woman of the Year, CHS Yearbook ad, etc. to see if we can do these things. * It was the consensus of the Council to Combine Boards & Commissions line items for a total of $1,000.00. * It was the consensus of the Council to pass the Council Budget, pending legal review of designated items. Economic & Business Development Board Budget was discussed, and there was concern about the increase in the Public Relations item. The issue of ADA compliance throughout the city was discussed by Assistant City Manager/Personnel Director, Vivyon Bowman, who pointed out that the City must be in full compliance by 7/26/95. 93-94 Workshop Mins. Page III Councilmember Stahly had several questions, primarily to Department Directors, and was also concerned because the increase in budgets was not matching an increase in performance indicators. She recommended that the budget presentation include percentages of increase or decrease, and landscape format on the pages. In response to a question regarding the 30 % increase in hospitalization next year, Assistant City Manager/Personnel Director, Vivyon Bowman, explained that it would be going out for bid. Councilmember Mayo suggested that the City look at overall health benefits. Assistant City Manager/Personnel Director, Vivyon Bowman, addressed the "competitiveness" of the benefits. Discussion followed regarding the Maintenance line item of the budget. Councilmember Stahly addressed the lack of increase in funding for parks and library. The $10,000 line item for management retreat in City Manager's budget was questioned. Interim City Manager, Frank Trando, identified the dollar amount as the funds to conduct a Council/Staff retreat after the "new" City Manager comes on board, as well as staff retreats during fiscal year 1994. Councilmember Mayo suggested talking with the CISD about possible joint storage rental. A questioned was raised on the $7,200 per year copier maintenance cost, and it was suggested that rental of equipment be looked into. City Secretary, Dorothy Timmons, will look into this. Councilman Weaver asked about line item for courier service. * It was the consensus of the Council to approve 93-94 budget for general revenue and expenditures with the understanding that the 5% increase in salaries be used as the City Manager or Personnel Department deems necessary, with an additional increase to be considered at mid-year to bring employees up to market level after an exteusive outside audit of our personnel compensation package. The $146,000. It was the consensus of the Council to approve. Acting Finance Director, Alan Johnson, presented the supplements. Discussion followed concerning building maintenance workers. This item was deferred to Director of Public Works to bring back a proposal on this in six months. There was some discussion of using fire and police personnel. Steve Goram asked to come back at mid-year with his recommendation. Mayor Morton asked Frank to direct staff to bring a recommendation back to the Council in November and leave the dollar amount in the budget - $25,000 will be left in to budget for maintenance workers. Mayor Pro Tern Robertson pointed out that items 4-30 were what Staff brought to the Finance Committee. ANNUAL BUDGET TOTAL SUPPLEMENTAL REQUESTS GENERAL FUND FY 1994 BUDGET ASSESSED VALUATION $1,133,906,263 PROPOSED TAX RATE 0.6895 REVENUE FROM TAXES 7,818,284 ESTIMATED COLLECTIONS 97.50% TOTAL ESTIMATED FUNDS AVAILABLE $7,622,827 GENERAL FUND TAX RATE $0.43263 BONDED ENDEBTEDNESS TAX RATE 0.25687 PROPOSED TAX RATE $0.68950 GENERAL FUND TAX REVENUE $4,782,978 BONDED ENDEBTEDNESS TAX REVENUE 2,839,848 TOTAL ESTIMATED FUNDS AVAILABLE $7,622,827 $0.01 OF GENERAL FLrND TAX RATE $110,556 AMOUNT GENERAL FUND PAGE (Net of Water/Sewer TOTAL FUND BALANCE DEPARTMENT DESCRIPTION # Reimbursment) AMOUNT DECREASE ESTIMATED FUNDS AVAILABLE $184.151 Police Dispatcher ( 1 ) 4-2 18.787 18,787 Police Patrol Officers (3) 4-3 79,653 98,440 Bld Maint Building Maintenance Workers (2) 44 25.826 124,266 Police Building Security 4-5 11.000 135,266 Court Panic Button Security 4-6 1,400 136 666 Streets Pickup - Mounted Striper 4-7 15,675 152 341 Parks Grapevine Springs Park Maintenance 4-8 25,000 177 341 City Sec New Postage Machine & Scale 4-9 8,000 185 341 1,190 Fire Annual Physicals 4-10 14,820 200 161 16,010 Streets 32' Arm Lil~ Attachment 4-11 11,400 211 561 27,410 Fire Washers/Extractors 4-12 2,660 214 221 30,070 Parks 50 HP Diesel Turf Tractor 4-13 41,800 256 ::)21 71,870 Engineering Copier w/Stand 4-14 5,600 261 521 77,470 Court Replacement Vehicle 4-15 15.500 277 121 92,970 Inspections Replacement Vehicles (2) 4-16 17.500 294 fi21 110,470 Fire Replacement Vehicle 4-17 16,150 310 771 126,620 Inspections Plat Files/Lateral Files 4-18 1,764 312 535 128,384 Inspections Uniform Code Books 4-19 655 313,190 129,039 Library Computer Workstation w/Printer 4-20 3,150 316,340 132,189 Fire Dress Uniforms 4-21 6,745 323,085 138,934 Finance Computer Presentation Packa8e 4-22 2,400 325,485 141,334 Police Refurbish Records Office 4-23 6,000 331,485 147,334 CITY OF COPPELL 6(;;;1 22 GENERAL RESIDENTIAL HOMESTEAD EXEMPTION Statutory Adoption Deadline The governing body must adopt an ordinance granting the homestead exemption no later than April 30th. (per Section 11.13 (n), Property Tax Code) Percentage Authorized The governing body may grant a percentage homestead exemption from 1% to 20%. Minimum Exemption Amount If the percentage set produces an exemption of less than $5,000 in appraised value, then the individual is entitled to a $5,000 reduction in appraised value. Repealable Once authorized, the homestead exemption may be repealed, increased or decreased, however, may not be decreased less than $5,000. Estimated Value Lost in 1994 $30,593,000 Estimated Levy Lost in 1994 $214,000 ~-~ (Minimum 1% or $5,000) Estimated Levy Lost @ 5% $250,000 Estimated Levy Lost @ 10% $500,000 Estimated Levy Lost @ 20% $1,000,000 Page 1 93-94 Workshop Mins. Page IV * It was the consensus of the Council to adopt the Supplements to Budget, schedule 2, as shown on page 4.1 with one change, the word "works" on item 3 is being stricken. There was no discussion on the Debt Service Fund, it was accepted as is. Water and Sewer budget was discussed and several questions were asked. Councilmember Mayo mentioned the City Page idea. Steve Goram, Director of Public Works, addressed the water system line item. Discussion of Sandy Lake Road construction project followed. Councilmember Weaver raised questions regaridng time line, construction and the additional tax rate, and offered the suggestion that perhaps it needs to be spread out over 3 years. City Engineer, Ken Griffin, responded to these questions. The meeting was adjourned at 7:00 p.m. Tom Morton, Mayor ATTEST: Dorothy Timmons,City Secretary