Loading...
HomeMy WebLinkAboutCC 2006-08-04 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 - AUGUST 4-5, 2006 Present: City Council: Oscar Trevino John Lewis Ken Sapp Suzy Compton Tim Barth David Whitson Scott Turnage Tim Welch Staff: Larry J. Cunningham Richard Torres Ogden Bo Bass Karen Bostic Richard Abernethy Patricia Hutson Larry Koonce Drew Corn Mary Edwards Margaret Ragus Patrick Hillis Mayor Mayor Pro T em Council Member Council Member Council Member Council Member Council Member Council Member 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 Director of Human Resources CALL TO ORDER Mayor Trevino called the Council Budget Work Session to order August 4, 2006 at 10:00 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. Throughout the work session staff presented a PowerPoint presentation that provided an overview of the revised and proposed budgets for each fund, recommended service changes and highlights of the proposed 2006/2007 Capital Projects Budget. The City Manager began the presentation by referring to accomplishments achieved by the departments over the past year, commented on unanticipated revenues realized in 2005/06, gave the economic outlook and advised of assumptions used to prepare the proposed budget. Mr. Cunningham reviewed highlights of the proposed budget. The Budget Work Session Minutes August 4-5,2006 Page 2 proposed budget provides for a balanced budget, maintaining the same or improved level of service to the public, a property tax rate of 57¢, a slight growth in sales taxes, Phase 2 of an increase in water and sewer rates as recommended with the Utility Rate Study and adopted by the Council in 2005, meeting the goals established by the Council, a plan to keep employee compensation at a competitive level, a few service improvements that are considered high priority, and restoration of some reserves to maintain financial integrity and initiate work to plan for future opportunities for the citizens. Mr. Corn explained the General Fund and the departments and revenue categories included in the General Fund. A brief overview was given of the Revised 2005/06 Budget, Revenues and Expenditures. The 2005/06 General Fund Revenues were revised upward approximately 2.9% due to unexpected revenues from increase in building plan and inspection fees from major construction projects, TXU settlement dollars from billing overcharges, Charter Communication settlement dollars, increase in interest earnings and signing bonus money from leasing four city parks for natural gas development. Mr. Corn discussed the Pay-As-You-Go Capital Projects Reserve and commented on the revised 2005/06 Service Enhancements. Councilman Sapp requested Council receive a CD copy of the PowerPoint presentation. Mr. Corn presented the proposed 2006/07 General Fund Budget. Mr. Corn gave an overview of the history of property tax values, the proposed 2006/2007 General Fund Revenues, sales tax revenues history, the proposed 2006/2007 General Fund Expenditures and the proposed 2006/2007 Service Enhancements. Mr. Patrick Hillis, Human Resources Director, discussed the Employee Compensation and Benefits with Staff responding to questions. Mr. Hillis summarized the history of the City's market adjustment plan. Mayor Trevino asked for an explanation of the difference between market adjustment and merit increase. Councilman Sapp asked about adjustments made for employees at mid- point and questioned the percentage of employees at or above mid-point. Mr. Hillis explained the difference between the market adjustment and the merit increase and the purpose of each. Mr. Hillis explained how adjustments are made to the Public Safety and General Services Compensation Plans. Mr. Hillis discussed compensation issues facing North Richland Hills and advised that the direction Council provided at the Mid-Year Budget Work Session was taken into consideration as the budget was prepared. Mr. Hillis discussed various factors taken into consideration to arrive at the recommendations and implementation strategy. The implementation strategy and recommendations for adjustments to the Public Safety Plan and the Budget Work Session Minutes August 4-5, 2006 Page 3 General Services Plan were explained and discussed. The Council concurred with the presentation and the recommendations presented. Mr. Hillis updated the Council on the Health Insurance Plan with Staff responding to questions. Council was updated on the plan's activities for the last 12 months and the current year plan performance and changes proposed for 2007 were discussed. Council was advised no changes were being recommended to the Plan's design, but increases to the medical premiums were being recommended. The Revised 2005/06 General Fund Service Enhancements were presented with Staff responding to questions. · Ms. Bostic presented enhancements to the Council Chamber recording and broadcast equipment. Upgrades are proposed to the recording and electronic voting systems and the cameras and broadcast equipment. The upgrades will be funded from the Charter Communications Legal Settlement and the General Fund. Ms. Bostic commented that Councilman Whitson had suggested replacing the monitors in the Chambers due to the poor quality. Ms. Bostic advised replacement of the monitors will be taken into consideration as upgrades are made. Councilman Sapp asked that consideration be given to integrating the video into the laptops. Council was reminded that consideration would need to be given to the Boards who use the Chambers and do not have access to laptops. · Mr. Bass discussed a Sustainable Development and Planning Study. A professional consultant would be obtained to prepare a comprehensive zoning ordinance supporting sustainable development, to analyze rail station / transit- oriented development projects and assist with federal and state grand funding. · Mr. Bass presented a proposal to establish a Reserve for Rail Station Development. Proposed is $200,000 "seed money" for rail station development. Mayor Trevino recessed the work session at 12:19 p.m. and called the work session back to order at 1 :17 p.m. The presentations of the Revised 2005/06 Service Enhancements were continued. · Mr. Bass presented the Neighborhood Initiative Program. The program completes 85 to 90 projects per year. Proposed is $90,000 to the program to purchase window units, fans and window screens for qualified special needs families using TXU settlement dollars. Budget Work Session Minutes August 4-5, 2006 Page 4 · Mr. Bass presented the Neighborhood Looks Program. The program's purpose is to fix issues with high grass, trash and dilapidated homes before intervention is required by Code Enforcement. Proposed is the dedication of $15,000 to be used for informational brochures, flyers and advertising. · Mr. Bass presented the Litter Not Program. The program is created in response to the citizen survey, which indicated a need to focus on litter within the City. Proposed is the dedication of $15,000 of the TXU settlement money to jumpstart the program · Mr. Bass presented the Utility Billing Assistance Program. The program proposes to provide water utility payment assistance to qualified residents at an estimated cost of $107,478. Staff was asked to add wording to clarify that the program is for water utility payments and no other utilities. The proposed 2006/07 General Fund Service Enhancement was presented and discussed with Council. · Mr. Bass presented an Expansion of the Permanent Street Maintenance Program. Recommended is an additional $200,000 of funding to maximize the amount of work done in house and increase the average street condition rating. The program will be funded by gas lease signing bonuses. Total program will be $800,000. Council reviewed and discussed the General Fund Summary of Revenues and Expenditures. In response to questions from Council, Staff explained that the increase of Public Works traffic control expenditures was a result of increased electricity costs. Various increases in some of the Police expenditures are a result of restructuring and changes within the department. Mr. Koonce discussed the Debt Service Fund and gave a status report on the 2003 Bond Election in terms of the amount of debt that has been issued. Mayor Trevino discussed with Council a non-departmental contingency item. Mayor Trevino explained the advantages of and need to obtain the services of a lobbyist to assist with the legislative issues that will affect the City. The lobbyist will assist staff by monitoring legislative activity, helping the City target where its efforts need to be, and alert Staff more quickly of legislation impacting the City. Council concurred with the Mayor's recommendation. Budget Work Session Minutes August 4-5, 2006 Page 5 The Council concurred with the General Fund Budget and tax rate as presented and the recommended compensation and benefits and service enhancements presented. Mr. Corn explained Special Revenue Funds and Council discussed each of the Special Revenue Funds with Staff responding to questions. Mr. Hillis left the work session at 2:00 p.m. and Mayor Trevino left the work session at 2:05 p.m. Mayor Pro Tem Lewis chaired the work session in the Mayor's absence. Mr. Corn presented the Park and Recreation Development Fund. The revised 2005/2006 Park Fund Revenues and Expenditures and the proposed 2006/2007 Park Fund Revenues and Expenditures were highlighted. Mr. Torres presented the proposed 2006/2007 Park Fund Service Enhancements. . Addition of a Horticulturist Position and Marketing/Special Projects Coordinator - Funding created by elimination of the Recreation Superintendent. Responsibilities of the Horticulturist and Marketing/Special Projects Coordinator were discussed. Councilman Sapp questioned if consideration had been given to outsourcing the marketing position since NRH20 is seasonal. Mr. Torres explained that the majority of the marketing work is done during the off- season. Council concurred with the Park and Recreation Development Fund as presented. Mayor Pro Tem Lewis announced at 2:17 p.m. that he was recessing the Council Budget Work session and calling the Crime Control and Prevention District Budget Work Session to order. The District began discussion of the proposed budget and reviewed the Fund Summary. Mayor Trevino returned to the work session at 2:24 p.m. The Crime District Work Session was adjourned at 2:37 p.m. and Mayor Trevino called the Council Budget Work Session back to order at 2:37 p.m. Mr. Corn presented the budgets for the Special Revenue Funds consisting of the Promotional Fund, Special Investigation Fund, Donations Fund, Drainage Utility Fund and Gas Development Fund. Mr. Corn reviewed the anticipated gas revenues in 2005/06 and highlighted the 2006/07 proposed Gas Development Fund Revenues and Expenditures. There are no expenditures requested for 2005/06 and the expenditures in 2006/07 are in accordance with the policy approved by Council. Council concurred with the Special Revenue Funds as presented. Mayor Trevino called a recess at 2:45 p.m. and called the work session back to order at 3:25 p.m. Budget Work Session Minutes August 4-5,2006 Page 6 Mr. Corn presented the Enterprise Funds with staff responding to questions from the Council. Mr. Corn discussed with Council the revised 2005/06 Utility Fund Revenues and Expenses. Mr. Corn explained rate stabilization and explained to Council why there was an increase in the use of the fund balance for rate stabilization. The proposed 2006/07 Utility Fund Budget and Service Enhancements were presented. The Service Enhancement for 2006/07 is the purchase of a flow meter with laptop. The enhancement will reduce wastewater system inflow and infiltration. The Council concurred with the Utility Fund budget as presented. Mr. Corn presented the Aquatic Park Fund and staff responded to questions from the Council. Mr. Corn highlighted the attendance history of the park and discussed the Revised 2005/06 Revenues and Expenses and Proposed 2006/07 Revenues and Expenditures. Mayor Trevino requested clarification to the wording in the budget that the increase to credit card service costs is due to higher credit card usage from customers paying with credit cards vs. city credit card usage. Mr. Torres presented the Proposed Service Enhancement to be funded from the Aquatic Fund. . Addition of Aquatic Maintenance Technician. Councilman Whitson questioned a page within the Aquatic Budget titled Revenue Operations (page 417) that contained all zeros. Staff advised that it had been inadvertently left in the document. The page was an old cost center that no longer has any costs and will be removed. The Council concurred with the Aquatic Park budget as presented. Mr. Corn presented the budget for the Golf Course Fund. Council was advised of the golf course's rounds of golf history and the 2005/06 Revised Golf Course Revenues was presented and discussed. Mayor Trevino recessed the meeting at 4:03 p.m. and called the meeting back to order at 4:15 p.m. Mr. Corn continued with the presentation of the Golf Course Fund and presented the Revised 2005/06 Expenses and Proposed 2006/2007 Golf Course Revenues and Expenditures. The proposed 2006/07 Service Enhancement for the Golf Course was presented. Proposed is the replacement of twelve various items of golf course maintenance equipment with proposed funding anticipated to be from the natural gas revenues. Council concurred with the Golf Course Fund as presented. Budget Work Session Minutes August 4-5, 2006 Page 7 Mr. Corn presented the Internal Service Funds consisting of the Building Services Fund, Equipment Services Fund, Insurance Fund and Information Services Fund. Revised 2006/07 Revenues and Expenditures, Proposed 2006/07 Revenues and Expenditures were discussed. Ms. Bostic presented a Revised 2005/06 Service Enhancement to the Information Services Fund consisting of an addition of T-1 Internet Bandwidth line. Ms. Bostic also presented a Proposed 2006/07 Service Enhancement for a Design and Layout Study for Municipal Wireless network. Mayor Pro Tem Lewis commented that the computers at the Dan Echols and Recreation Center were in need of upgrading and asked that as the computers are replaced within the City, consideration be given to transferring the older computers to the areas needing upgrades. Mr. Koonce presented a Revised 2005/06 Service Enhancement to the Self Insurance Fund consisting of a Post Employment Benefits Study. The Actuarial Study is required by GASB Pronouncement 45. The Council concurred with the Internal Service Fund Budgets as presented. Mayor Trevino recessed the work session at 4:53 p.m. and called the work session back to order at 5:06 p.m. Mayor Trevino inquired if Council had any questions and asked if they concurred with all of the Operating Budgets as presented. The Council concurred with all Operating Budgets and Service Enhancements. 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 reported that he had verified all reimbursement forms submitted and reported that everything was in order. The City Council was provided with a list of reimbursements and was advised that verification is on file in the Finance Department. There were no questions from the Council. Council began a review and discussion of the Capital Projects Budget. Staff presented and discussed with Council the following Municipal Facility Projects. · Fire Stations 2 & 3 Apparatus Bays Renovation · Fire Stations 2 & 3 Interior Renovations · Fire Stations 2 & 3 Vehicle Exhaust Extraction Systems · HV AC Replacement · Building Renovations - includes the relocation of Economic Development and expansion of the Pre-Council Chambers. Councilman Sapp advised that as changes are made to the Pre-Council Chambers, he would like for the videoing of the Council Work Session to Budget Work Session Minutes August 4-5, 2006 Page 8 resume and suggested placing monitors in the lobby to allow citizens to also view the work session outside of the meeting room. Council discussed the taping of the meetings and that the Council meeting in the Pre-Council Room was in fact a work session and the room name was misleading. Council suggested that the name be changed to Council Work Room or some other similar name. Council questioned if other cities were broadcasting their work sessions. The consensus of the Council was to continue to not broadcast the Council work sessions. · Municipal Facilities Master Plan - Contract with an architectural firm to study potential relocations and/or adjustments to city facilities, campuses, and departments and the planning, phasing, construction and budgetary impact. · Police Department Emergency Generator Replacement · Recreation Center Generator Transfer Switch Install · Central NRH Area Library Council was presented with the latest computer drawing of the proposed facility and shown the various changes that had been made to the building as a result of the direction provided by Council at a previous Council work session. Council discussed the changes and alternate bids and viewed brick panels being considered for the facility. Mayor Trevino recessed the work session at 6:20 p.m. and called the work session back to order at 7:23 p.m. Council resumed discussion of the proposed library facility and expressed their thoughts on the brick panels. Council gave direction to staff on their choice of brick. Staff was directed to obtain panel mockups of the different variations of the brick selected by Council. Mockup is to include mortar. Councilman Sapp asked that it also include one layer of the stone. Councilwoman Compton also requested to see the pattern under the windows with the brick. Councilman Welch requested that a piece of the cast stone be provided. · Fire Training Facility Expansion/Upgrade · Animal Adoption & Rescue Center Expansion Staff presented the Major Equipment Capital Projects and responded to questions from Council. · Financed Public Safety Equipment · Aerial Ladder Truck · Tiburon Public Safety Software/Hardware upgrade · Fire Engine Replacement Budget Work Session Minutes August 4-5, 2006 Page 9 · Police Mobile Video System Upgrade · Street Sweeper Replacement Staff presented the Economic Development Projects and responded to questions from Council. · Boulevard 26 Intersection Improvements · Calloway Creek Retail Area Development · Sign Removal Assistant Program · Sustainable/Transit Oriented Development & Planning Council concurred with the capital budgets for the Municipal Facilities Projects, Major Equipment Capital Projects and Economic Development Projects. Mayor Trevino recessed the work session at 8:00 p.m. Mayor Trevino called the work session back to order on August 5, 2006 at 8:04 a.m. with all Council Members and Staff present as recorded with the exception of Mr. Hillis. Mr. Bass presented the 2005/06 Capital Improvements Program for the Public Works Department. Mr. Bass reviewed the projects completed in fiscal year 2005/06 and gave an update on each of the continuing projects. Mr. Bass highlighted eight new street and sidewalk projects, one new drainage project, eight continuing utility projects and ten new utility projects. Councilman Sapp expressed concerns with the traffic at the Post Office and the need for a traffic signal. Mr. Bass advised that the Signal Timing Plan will help and that Smithfield Road will eventually align with the Bridge Street light. Council discussed the video detection systems located on the signals and the need to inform the public of their purpose. Staff was asked to inform the public in the city newsletter. Mayor Trevino requested Staff to look at the overgrowth of weeds at Calloway Creek from Hightower to Chapman and the silt build-up on the south side of Chapman. The Council concurred with the Public Works Capital Improvement Program. Mayor Trevino recessed the work session at 9:32 a.m. and called the work session back to order at 9:42 a.m. Budget Work Session Minutes August 4-5, 2006 Page 10 Mr. Torres presented the 2006/07 Park and Recreation Development Capital Projects highlighting the proposed revenues and expenditures for 2006/07, completed projects, continuing projects and new projects. Mayor Trevino suggested that Citicable be used to inform the public of park improvements and other public improvements within the City and show the public's use of the various facilities. Councilman Whitson asked that Staff look into the mowing costs increase and insure that before another contract is signed that both parties are using the same CPI index. The Council concurred with the Capital Projects budget for the Park and Recreation Development Fund, Mr. Torres presented the Aquatic Park Capital Projects highlighting the operating history of the park, the completed projects, continuing and new projects. Council concurred with the Aquatic Park Capital Projects budget. The City Council Members reconfirmed their consensus with all budgets and funds as presented. Mr. Cunningham discussed with Council the unfinanced decision packages. Councilman Whitson questioned the Public Works request to reclassify crewleader to equipment operator that had no financial impact on the budget. Mr. Bass advised that it would be handled administratively. Mayor Trevino gave closing remarks and Mr. Corn reviewed the truth in taxation law with Council. Mayor Trevino adjourned the work session at 11 :49 a.m. Oscar