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Home My WebLink AboutCC 2005-07-29 Minutes MINUTES OF THE BUDGET WORK SESSION OF THE CITY COUNCil OF THE CITY OF NORTH RICHlAND HillS, TEXAS, HELD AT GARRETT CREEK RANCH CONFERENCE CENTER, 270 PRIVATE ROAD 3475, PARADISE, TEXAS - JULY 29-30, 2005 Present: City Council: Oscar Trevino Tim Welch John Lewis Jo Cox Suzy Compton JoAnn Johnson David Whitson Nancy Bielik Mayor Mayor Pro Tem Council member Council member Council member Council member Council member Council member Staff: Larry J. Cunningham Richard Torres Ogden Bo Bass Karen Bostic Richard Abernethy Patricia Hutson Larry Koonce Drew Corn Mary Edwards Margaret Ragus Ann Fuller City Manager Assistant City Manager Assistant City Manager Managing Director Admin/Fiscal Services Assistant to City Manager City Secretary Director of Finance Director of Budget Public Information Officer Budget Analyst Internal Auditor / Fin. Analyst CAll TO ORDER Mayor Trevino called the Council Budget Work Session to order July 29, 2005 at 9:06 a.m. with all council members present. Mayor Trevino announced that the Crime Control and Prevention District Board would meet in conjunction with the City Council Budget Work Session. Mayor Trevino made opening remarks. The City Manager presented a PowerPoint presentation. Mr. Cunningham highlighted accomplishments achieved by the departments over the past year, gave the economic outlook and advised of assumptions used to prepare the proposed budget. Mr. Cunningham reviewed highlights of the proposed budget. The proposed budget includes no reductions in services or service levels, no employee lay-offs or reductions, a collection rate of 99% of property taxes, maintains the property tax rate of 57¢, a forecast of 6% decrease in sales taxes, only mandated and highly crucial service/program enhancements are recommended, and an increase in water and sewer rates as recommended by the Utility Rate Study recently presented to Council. Proposed are the implementation of the following changes and cost savings measures: reprioritization of non-emergency equipment replacements, reprioritization Council Budget Work Session Minutes July 29-30, 2005 Page 2 of 7 of building capital equipment and maintenance projects, reprioritization of technology replacements and upgrades, funding a portion of the Preventive Street Maintenance Program with project savings and interest earnings and reducing the contribution to the Pay-As-You-Go Capital Reserves. It is not believed that the recommended cost savings will adversely impact overall services during the next fiscal year and the intent is to resume the projects when the local economy improves. Service enhancements being recommended are 1) the replacement of the postage machine (a mandated cost and part of the 2004/2005 revised budget); 2) implementing the 2003 International Building Code (a mandated cost); 3) professional services for phases 2 and 3 of the Property Protection Classification Rating Analysis; 4) the addition of a school crossing guard at the New Walker Creek Elementary School; and 5) a walk-in freezer expansion at the Animal Shelter. No changes to the City's health insurance program are planned in the next fiscal year but an increase in employee premiums to address rising healthcare costs and to help rebuild Reserve Funds is anticipated. Council was advised that the use of the reserves was justifiable and prudent, but that the reserves needed to be restored as soon as practicable. Mr. Corn presented a PowerPoint presentation explaining the General Fund and the departments and revenue categories included in the General Fund. A brief overview was given of the revised 2004/05 budget, revenues and expenditures. Mr. Corn presented the proposed 2005/06 general fund revenues and expenditures, history of net taxable values, and 2005 appraised values. Mr. Corn discussed changes to the general fund revenue. Mr. Corn discussed in detail the 2005/06 general fund service enhancements totaling $29,958. Changes discussed were: · Walk-in Freezer Expansion · Professional Services for ISO Rating · School Crossing Guard - New School · Mandated Cost - 2003 Building Code Mayor Trevino recessed the work session at 10:20 a.m. and called the work session back to order at 10:34 a.m. Mr. Cunningham advised Council that the City received updated appraisal values on July 25. The information provided in Council's budget packets was an estimate based on the May 2005 appraised values. The July 25 appraised values are higher than the May forecast resulting in additional dollars from the increase in net taxable value. Council was provided with updated Schedules 1-4 showing the additional dollars based on the increase in value. Mr. Cunningham suggested the additional dollars be used for the restoration of the general fund balance as reflected on updated Schedules 1-4. Council consensus was to use the additional dollars for the restoration of the general fund reserves as presented. The City Council began a review of the schedules of the General Fund Revenues and Expenditures Summaries with Staff responding to questions. Council questioned if Birdville Independent School District would reimburse the City for School Resource Officers as it had last year. Mr. Torres advised that he had heard that Council Budget Work Session Minutes July 29-30, 2005 Page 3 of 7 the School Board had approved an agreement similar to last year's but that the City had not yet seen the agreement. Councilman Whitson expressed concern that the funding of employee tuition reimbursement had been cut. Council agreed to fund tuition reimbursement for all employees by moving funds from City Council Special Projects to the Human Resources budget. Council discussed the replacement of the postage machine due to the Postal Service mandating the retirement of meters using letterpress technology by January 1, 2006. Council concurred with funding the replacement of the postage machine in the revised 2004/05 budget. Councilwoman Bielik questioned the turnover rate for full-time employees. Mr. Cunningham advised the City's overall turnover rate was below the national average. Councilwoman Bielik asked how the City's uncollected ambulance debt compares to other cities. Mr. Koonce advised that a comparison with other cities had been conducted and that North Richland Hills collection rate is in line with other cities that also outsource. Staff discussed with Council ambulance billings and collections. Mr. Koonce explained how the ambulance bad debts are budgeted and how they are written off. Mr. Cunningham pointed out that with the new State law, the City is able to assess a fee to fund the Teen Court case manager's salary. Council inquired as to the number of teen court violations filed. Council asked that an update be provided at a Pre-Council meeting. Council discussed the replacement of the walk-in freezer at the Animal Shelter and concurred with replacing it with a larger unit. Mayor Pro Tem Welch questioned why the Dan Echols Senior Center did not show donations received in their Performance Measures while the Bursey Road Senior Center showed donations received in their performance measures outputs. Staff will find out if the Dan Echols Center also received donations. Mayor Trevino recessed the work session at 12:05 p.m. and called the work session back to order at 1 :05 p.m. Council resumed their review of the schedules of the General Fund Revenues and Expenditures Summaries with Staff responding to questions. Mr. Cunningham explained the accounting of non-departmental expenditures. The Mayor asked Council if they had any concerns with the accounting of non-departmental expenditures. The Council expressed no concerns and concurred that they understood the accounting method for non-departmental expenditures. Council Budget Work Session Minutes July 29-30, 2005 Page 4 of 7 *Councilwoman Bielik advised some of the surrounding cities did not issue Certificates of Occupancy to rental property until all debts are paid to the city and asked if North Richland Hills had considered doing the same until unpaid utility bills are paid. Councilman Lewis thought that Haltom City was addressing unpaid utility bills through an ordinance. Staff will research Haltom City's ordinance and determine its applicability to North Richland Hills. Mr. Koonce discussed with the Council the General Debt Service Fund Summary of Revenues and Expenditures. **Councilwoman Bielik advised that she had learned from the Tarrant Appraisal District (TAD) that businesses are not paying property taxes on signs and questioned how much income the City is losing. Staff advised that TAD should be including the signs on the tax rolls. Staff will contact TAD regarding the issue. Council concurred with the General Fund budget as presented and with maintaining the current tax rate of 57 ¢ per $100 valuation Mr. Corn presented an overview of the Special Revenue funds and discussed the day-to-day operations of the Park and Recreation Fund. Council gave their consensus on the funds. Mr. Koonce presented a PowerPoint presentation of the Crime Control District summarizing the revenues and expenditures, programs, accomplishments and history of the District since its inception. The proposed 2005/06 Crime Control District Budget was presented. The budget includes proposed expenditures of $4.7 million to include CCD personnel costs, indirect costs to the General Fund, General Fund police compensation plan enhancements, supplies/maintenance/capital, and transfer to the Vehicle Replacement Fund. The budget includes replacement of five patrol cars, one pickup truck for property evidence and eight mobile video systems. All goals and objectives as set out in the original CCD proposal and renewal referendum have been met and are being maintained. Following the PowerPoint presentation, Mayor Trevino announced at 2:00 p.m. that he was calling the Crime Control and Prevention District Budget Work Session to order and the District began discussion of the proposed budget and reviewed the Fund Summary. Mayor Trevino called the Budget Work Session back to order at 2:08 p.m. Council reviewed and discussed the Promotional Fund and Donations Fund. Council was in consensus on the recommended service changes and the funds presented. Mayor Trevino recessed the work session at 2: 15 p.m. and called the work session back to order at 2:30 p.m. Corrected to further clarifiy that suggestion was made by Councilwoman Bielik and that there was no concurrence or agreement by the Council on the need to do the suggestion. Corrected to further clarify that suggestion was made by Councilwoman Bielik and that there was no concurrence or agreement by the Council on the need to do the suggestion. Council Budget Work Session Minutes July 29-30, 2005 Page 5 of 7 Council discussed the Special Investigation Fund and Drainage Utility Fund. Council concurred on the funds and recommended service changes. Mr. Corn presented an overview of the Internal Service Funds and Council discussed the Building Services Fund, Equipment Services Fund, Insurance Fund and Information Services Fund. Council concurred with the funds presented and recommended service changes. Mr. Corn presented an overview of the Enterprise Funds consisting of the Utility Fund, Golf Fund and Aquatic Park Fund. Council discussed the water and sewer proposed rate increases. Councilwoman Bielik asked about putting on Citicable and the City's website before the new water and sewer rates are adopted, information on the rate increases and explaining the need for the increases. Mayor Trevino recessed the work session at 3:05 p.m. and called the work session back to order at 3:25 p.m. Council resumed discussion of the Enterprise Funds and discussed the Golf Course Fund and Aquatic Park Fund. Council discussed the marketing of the golf course restaurant and suggested that the restaurant be promoted and advertised through Citicable, Utility Billing inserts, City website, etc. Councilwoman Compton suggested that goals and objectives be created for the golf course and EAGL be held accountable. Council concurred with the replacement of the golf course greens. Council concurred with the Golf Course Fund Summary and funding appropriation of the greens reconstruction project presented by Staff. Staff presented and discussed with Council the revised 2004/05 Aquatic Park revenues and expenses and the proposed 2005/06 Aquatic Park revenues and expenses. Council concurred with the Aquatic Park budget. Mr. Koonce advised the Council's auto reimbursement policy provides that the Finance Director is to present annually to Council the activity for the year. Mr. Koonce advised he had verified all reimbursement forms for the year from July 2004 through June 2005 and reported that everything was in order. The City Council had been provided with a list of reimbursements and was advised that verification is on file. Mayor Trevino asked if Council had any questions concerning the items that had been discussed in the Operating Budget and reconfirmed that Council was in agreement with the operating budget, the 57 cent per $100 tax rate, and all funds discussed with only one change Council Budget Work Session Minutes July 29-30, 2005 Page 6 of 7 - funding tuition reimbursement in all departments from the City Council's budget. All Council Members concurred. Mayor Trevino recessed the work session at 4:20 p.m. and called the work session back to order at 7:00 p.m. Mr. Bass presented a PowerPoint Presentation of the 2005/06 Capital Improvements Program for the Public Works Department. Mr. Bass reviewed the projects completed in fiscal year 2004/05 and gave an update on each of the continuing projects. Mr. Bass discussed new street and sidewalk projects, the continuing drainage projects, continuing utility projects and new utility projects. Councilman Lewis brought to Staffs attention the need for sidewalks for the new school in the Keller ISD - the residents in Thornbridge are seeking sidewalks on North Tarrant and Precinct Line. Sidewalks may also be needed for the Northridge Middle and Elementary schools around Starnes, Douglas and Hightower. Councilman Whitson referred to the signalization project on Mid Cities Boulevard at Parker Boulevard and asked if consideration had been given to renaming the streets Parker Boulevard and Martin Drive with the same street name. Staff will take the suggestion under advisement. Mayor Pro Tem Welch referred to the Big Fossil Creek Wastewater Outfall project and questioned if it would take the City to ultimate capacity. Staff advised that they would find out and report back. Council reached a consensus on the 2005/06 Capital Improvements Program for the Public Works Department. Mayor Trevino recessed the work session at 7:43 p.m. and called the work session back to order on July 30, 2005 at 8:01 a.m. with all Council members and staff present as recorded. Mr. Torres presented a PowerPoint presentation highlighting the 2005/06 Parks and Recreation Facilities Development Fund. Mr. Torres recapped the proposed revenues and expenditures for 2005/06. Mr. Torres reviewed the completed 2004/05 park projects, continuing projects for 2005/06 and highlighted the new park projects. Councilwoman Johnson expressed concerns with the number of parks on the south side of Loop 820. Councilwoman Johnson felt there had not been enough parks built on the south side of Loop 820. It was suggested that when the parking expansion project was completed at City Hall, land not used for parking could be utilized as a park. Council discussed the replacement of the greens at the Golf Course and asked for a report at the second Council meeting in August at the Pre-Council meeting and an informational report at the regular council meeting from the Golf Course Management Council Budget Work Session Minutes July 29-30, 2005 Page 7 of 7 Team on the options looked at for the greens reconstruction and why the option chosen is the best option. Council concurred with the Parks Capital Improvement Program as presented. Mr. Torres presented the Aquatic Park proposed capital projects budget for 2005-06. Mr. Torres reviewed the operations history and gave a status of the Strategic Plan. Mr. Torres highlighted the proposed capital improvements for fiscal year 2005-06 and discussed the funding sources for the new projects. Council concurred with the Parks Capital budget. Ms. Bostic presented a PowerPoint presentation of the Miscellaneous Capital Projects Budget. Council discussed the 2005/06 municipal facilities projects and the major capital equipment replacements. Council concurred with the Miscellaneous Capital Projects Budget and reconfirmed their consensus on the entire capital budget. Councilwoman Bielik commented that one of the items in unfinanced needs was safety glass for the Utility Billing Department and she would like the item to be reconsidered if funding becomes available later in the year. Mayor Trevino recapped that through consensus of Council's discussions the past two days, debt issuance proposed for 2005/06 is $14,495,000 in general obligation and certificates of obligations. Mr. Cunningham advised a bond sale would be needed next spring. The City Council Members reconfirmed their consensus with all budgets and funds. Mayor Trevino adjourned the meeting at 9:50 a.m. "~"f'I',,, ...,\ "./: ",~.),. ............. ~"..... f#' .~'.. '. ~ ,..... ." AJ .,Sn ......~ ~~JaJ(L páffJcià·~.I.ltso,,..- Q:ffy Secretary ""/. .. 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