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HomeMy WebLinkAboutCC 2006-06-15 Minutes MINUTES OF THE WORK SESSION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS HELD IN THE NORTH RICHLAND HILLS RECREATION CENTER, ROOM 8, 6720 NORTHEAST LOOP 820 - JUNE 15, 2006 - 6:00 P.M. 1. CALL TO ORDER Mayor Trevino called the work session to order at 6:00 p.m. Present: Oscar Trevino John Lewis Ken Sapp Suzy Compton Tim Barth David Whitson Tim Welch Staff Members: Larry J. Cunningham Richard Torres Ogden Bo Bass Karen Bostic Patricia Hutson Larry Koonce Drew Corn Mary Edwards Richard Abernethy Patrick Hillis Absent: Scott Turnage Mayor Mayor Pro T em Councilman Councilwoman Councilman Councilman Councilman City Manager Assistant City Manager Assistant City Manager Managing Director Administrative/Fiscal Services City Secretary Director of Finance Budget Director Public Information Officer Assistant to City Manager Human Resources Director Councilman 2. DISCUSS PLANNING AND PROGRAM OF SERVICES FOR FISCAL YEAR 2006/2007 City Manager Cunningham outlined the agenda. Purpose of the work session is to provide information regarding the City's 2006/2007 preliminary budget, information on some pressing issues and financial matters affecting the City's program for the next twelve to eighteen months, to update Council on the planning process of the current fiscal year and receive input Council may want to provide for planning next year's program of services and work. During budget preparations, the 2005 Citizen Survey was taken into consideration. Staff has identified programs to be implemented during the coming year to address and resolve the citizen concerns. City Council Work Session Minutes June 15, 2006 Page 2 of 5 Ms. Karen Bostic, Managing Director of Fiscal and Administrative Services, briefly reviewed the definitions of each of the funds. Mr. Larry Koonce, Finance Director, presented information on the fiscal year 2004/05 fund balances for the Operating and Capital Budgets. Mr. Koonce discussed the declining reserves in recent years due to increased cost of services, declining revenues, planned uses and extraordinary items. Council was advised of challenges being faced in the reserve funds for Information Services, Building Services, Permanent Street Maintenance CIP Pay-As-You-Go and Insurance Fund. Staff discussed with Council possible opportunities to rebuild the reserves through gas revenues and savings in the General Fund Budget. Council was asked if they would be supportive of using a portion of gas revenues to rebuild reserves and using a portion of general fund year-end budget savings to rebuild reserves. Council concurred with using a portion of the gas revenues and year-end budget savings to rebuild the reserves. Mr. Drew Corn, Budget Director, reviewed the 2005/2006 revised vs. adopted budget revenues and expenditures and highlighted the major changes impacting the revenues and expenditures. Mr. Koonce provided Council with information on the preliminary tax roll for 2006/07 and the distribution of tax revenues. Mr. Koonce explained the effective tax rate and the calculation of the effective tax rate. Mr. Corn presented information on the 2007 preliminary budget and compared the preliminary 2007 budget to the 2006 adopted budget. Impacts to revenues in the General Fund for FY 2007 were highlighted. Mayor Trevino called a recess at 7:20 p.m. and called the work session back to order at 7:30 p.m. with all members present as recorded. Staff presented Council with the following current and upcoming issues: · Post Employment Benefits - Deadline to implement GASB 45 is September 2009. Staff would like to implement early, but prior to implementation an actuarial study is required to determine estimated costs. The actuarial study will be required every two years. Councilman Sapp suggested that instead of using pay-as-you-go to fund the post employment benefits that consideration be given to setting up reserves. After discussion, the consensus of the Council was for staff to proceed with early implementation and to proceed with the Actuarial Study in FY 2006-2007. · Cost Increases - Staff discussed with Council the increased costs for fuel and electricity and the affect of the cost increases on the goods and services needed by the City to deliver municipal services. · Tarrant Appraisal District Funding Increase - The funding for Tarrant Appraisal District (TAD) is allocated among taxing entities by a proportion of property tax City Council Work Session Minutes June 15, 2006 Page 3 of 5 proposed. Currently, schools are funding 56.34% of TAD. Because school finance reform has lowered the tax rate of schools by 11 %, the funding will shift to cities, county and county districts. The Texas Municipal League is estimating increases to cities will be approximately 6.7% the first year and 16.5% the following year. This will impact North Richland Hills $8,000 the first year and an additional $20,000 the following year. · Permanent Street Maintenance Funding - Mr. Bass discussed funding levels at $600,000 (current level), $800,000, $1,000,000 and $1,200,000 and compared the number of streets that could be improved at the various levels. The Council desired to increase the city's investment in the Preventive Street Maintenance Program and consensus was to increase the funding level to $800,000. · Compensation Plan - Mr. Hillis discussed the history of the city's compensation plan and the market adjustments that have been made to the plan. Mr. Hillis advised that over the last year the market average has moved at a greater rate resulting in the city's plan being below market average. After discussion, Council consensus was to continue the philosophy of maintaining the pay range mid- points at market average. Council was also agreeable to considering a phased- in approach to reaching the market average. · Municipal Wireless Networking - Ms. Bostic explained a mesh network and future opportunities with a mesh network. Council discussed moving towards a "wireless mesh" type system and providing in the future a wireless network for citizen use. The pros, cons, and questions needing to be addressed in order to implement a wireless network were discussed. Council was advised a comprehensive study on the layout and design would be needed if Council were supportive toward a wireless networking system. The consensus of the Council was to proceed with a comprehensive study and evaluate the results of the study. · Taxation on Personal Use Leased Vehicles - Ms. Bostic advised that in November 2001 an ordinance was passed to continue the taxation of all leased vehicles. Recently some Council members have expressed a concern with the auto dealers and leasing companies passing the tax on to the consumers. Council was advised that the tax can be rescinded by ordinance and would take effect the following tax year. The potential revenue loss from the tax on the personal use leased vehicles would be $90,000. The consensus of the Council was to discontinue the taxing of personal use leased vehicles. · Use of TXU and Charter Settlement Dollars - Ms. Bostic discussed the amount of money the City will receive from the Charter settlement and possible use of the funds. Council was advised that the cameras and broadcast equipment in the Council Chambers, the recording system for city meetings and the Council Chamber voting system were ten plus years old and needed to be upgraded. After discussion, Council was supportive of using the funds received from the Charter settlement to make improvements to the Citicable equipment and upgrade the equipment for public meetings in the Council Chambers. Ms. Bostic discussed the settlement agreement with TXU and the amount of funds that will be available for "beneficial public use". Council was advised of upcoming City Council Work Session Minutes June 15, 2006 Page 4 of 5 Neighborhood Service programs needing funding - Neighborhood Initiative Program, Litter Not Program, Neighborhood Looks Program and Utility Bill Assistance Program. Some of the programs are in response to the citizen survey. After discussion, Council was supportive of using the settlement dollars from TXU towards the Neighborhood Services and agreed to the establishment of a program and guidelines for those citizens who have a proven need can receive assistance with their utility bills. · Policy on Uses of Revenues from Mineral Leasing - Ms. Bostic presented Council with three areas of consideration for use of the gas revenues - 1) to bridge the gap of sales tax revenue reductions; 2) to use "one time" (bonus) revenues for projects or non-recurring capital projects; 3) to use the revenues for expanding the City's economic base and use for economic development. Ms. Bostic discussed the types of revenues from mineral leasing and suggested possible distribution of the revenue. Distribution of revenue from a park site developed with general fund revenue would be 85% General Fund and 15% Economic Development. Distribution of revenue from a park site developed with sales tax revenue would be 50% Park Development Fund, 35% General Fund and 15% Economic Development Fund. Distribution of revenue from Iron Horse would be 100% to the Golf Course. Distribution of revenue from other city property would be 100% to Utility fund if it is "utility" property, 100% to General Fund if General Fund property and 50/50 split if a combination of the two properties. After discussion, Council was supportive of the gas revenues being used and allocated in the manner suggested by Staff. The consensus of the Council was also to consider a resolution approving a plan and policy for the use of the funds. · Facility Planning - Mr. Torres discussed with Council several relocation or adjustment needs for facilities and/or city departments that needed to be considered in the future and questions that needed to be resolved. Council was agreeable to including in next year's budget funds for the hiring of an architectural firm to assist the City in determining spatial needs for the future, location opportunities, cost estimates, etc. for facility planning. Councilman. Sapp felt that the Senior Center should also be included in the plan. The budget calendar and key dates were reviewed with the Council. 3. ADJOURNMENT Mayor Trevino adjourned the work session at 9:38 p.m. City Council Work Session Minutes June 15, 2006 Page 5 of 5