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HomeMy WebLinkAboutCC 2008-08-01 MinutesMINUTES 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 1-2, 2008 Present: City Council: Oscar Trevino Mayor Scott Turnage Council Member /Mayor Pro Tem John Lewis Council Member Ken Sapp Council Member Tim Barth Council Member David Whitson Council Member Tim Welch Council Member Staff: Larry J. Cunningham City Manager Jared Miller Assistant City Manager Karen Bostic Managing Director Elizabeth Reining Assistant to City Manager Patricia Hutson City Secretary Larry Koonce Director of Finance Mark Mills Director of Budget Mary Edwards Public Information Officer Jimmy Perdue Police Chief Patrick Hillis Director of Human Resources Mike Curtis Director of Public Works Jennipher Castellanos Budget Analyst Shirley Hoover Financial Analyst Absent: Suzy Compton Council Member CALL TO ORDER Mayor Trevino called the Council Budget Work Session to order August 1, 2008 at 8:30 a.m. with all council members present except Councilwoman Compton. 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 Mayor and Council commented on the budget document and expressed their appreciation to Staff for the quality of the budget document. Throughout the work session staff presented a PowerPoint presentation that provided an overview of the revised and proposed budgets for each fund, recommended service enhancements and highlights of the proposed 2008/2009 Capital Projects Budget. Budget Work Session Minutes August 1-2, 2008 Page 2 The City Manager began the presentation by highlighting the past year's accomplishments and how many of the Council's goals and objectives were achieved or implemented this past year. Council was advised the current fiscal year is projected to end in sound fiscal condition. Some revenues have decreased while other revenue sources have increased to make up the shortfall. Mr. Cunningham advised of the economic outlook and advised of assumptions used to prepare the proposed budget. Mr. Cunningham reviewed highlights of the proposed budget. The proposed budget provides for a balanced budget, maintains the same or improved level of service to the public, a property tax rate of 57¢, stabilization of sales tax, provides for increased fuel and maintenance costs, meets the goals established by the Council, provides for a competitive employee compensation plan, provides for a few high priority service improvements and the restoration of some reserves to maintain financial integrity and initiate work to plan for future opportunities for citizens. Mr. Mills provided an overview of the revised General Fund Budget and the Proposed Budget. Mr. Mills explained the General Fund and the departments and revenue categories included in the General Fund. A brief overview was provided of the Revised 2007/2008 General Fund Revenues and Expenditures. Mr. Mills discussed the Pay-As- You-Go Capital Projects Reserve explaining the purpose, examples of projects and the history of the Reserves. Mr. Mills presented an overview of the proposed 2008/2009 General Fund Budget. Mr. Mills discussed the history of net taxable values, changes in property value, the proposed 2008/2009 General Fund Revenues, a comparison of the adopted versus proposed General Fund Revenues, sales tax revenues history, and the proposed 2008/2009 General Fund Expenditures. Proposed for 2008/2009 are revenue adjustments for ambulance rate/mileage adjustment, and ambulance treat-no-transport. North Richland Hills ambulance fees are significantly lower than surrounding cities. The City currently has a 27% cost recovery for residents and a 37% cost recovery for non- residents. The objective of the proposed rate increase is to have non-residents pay 67% cost recovery in FY 2008/2009 and the resident fee will be phased in over four years beginning with 36% in 2009 and ending at 60% in 2012. The proposed fee for treat-no-transport is $100. Council was advised of the revenues realized from proposed revenue adjustments. Mr. Cunningham presented three service enhancements proposed in the General Fund. Proposed are increased funding to the Preventive Street Maintenance Program, school crossing guard at the intersection of Bursey and Smithfield Roads and continuation of the Code Compliance Assistance Program, a pilot program in the current budget. Mr. Hillis gave an overview of plans for the City's health insurance program, market adjustment and TMRS. Council was advised that there are no plan design changes to the health insurance program and it is anticipated medical expenditures for the year will finish under budget. The funding goal of 80/20 percent cost sharing will be maintained. Budget Work Session Minutes August 1-2, 2008 Page 3 Mr. Hillis discussed with Council the market adjustments planned to the Employee Compensation Plan. Council discussed and approved at the Mid-Year Budget work session the implementation of an eight-year phase-in option to fund TMRS cost increases related to TMRS adoption of the new actuarial method to pre-fund retirement benefits. Mr. Hillis advised Council that the City's contribution rate for 2009 will be 14.26 percent and that Staff will continue to proactively monitor the TMRS legislative initiatives and provide updates to Council as new information becomes available. Mayor Trevino asked for a consensus from Council on the service enhancements. Council concurred with the service enhancements discussed. Council reviewed and discussed the Budget Summaries. 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 within the policy guidelines. The City Council was provided with a list of reimbursements and verification is on file in the Finance Department. There were no questions from the Council. Council discussed the increase in Budget & Research's General Services as a result of Tarrant Appraisal District's operating cost increase. Council noted this was an example of an unfunded mandate. The City Manager advised the County had not had an increase in 14-15 years and explained the City pays a prorata share of the District's operational budget. When school property taxes went down, the city and Tarrant County had to pick up the difference. In response to questions from Councilman Welch, Mr. Cunningham advised that 62 percent of the employees will be receiving some form of merit next year. Some individuals have topped out and will only be eligible to receive a market adjustment. Council concurred with all information discussed and presented. Council reviewed the General Debt Service Fund. Council was advised the 2008 Certified Tax Roll had been received. Mr. Koonce advised of additional information received from Tarrant Appraisal District and provided an updated Schedule 4 - Summary of Property Tax Revenue and Distribution and Schedule 5 -Summary of Revenues and Expenditures. Mr. Koonce explained that the total appraised value as of July 25, 2008 had not changed but that the net taxable value was different from what had been projected in May. Mr. Koonce advised Council that because the proposed 57¢ tax rate is higher than the effective tax rate of 56.3058¢, two public hearings will be required. Council reviewed the updated schedules with Staff responding to questions. Budget Work Session Minutes August 1-2, 2008 Page 4 Mayor Trevino asked for Council consensus on the debt service and setting the tax rate at 57¢ per $100 valuation. All members of the Council concurred. Mr. Mills briefly explained to Council the purpose of Special Revenue Funds consisting of the Crime Control and Prevention District, Park and Recreation Facilities Development Corporation, Promotional Fund, Donations Fund, Special Investigation Fund, Drainage Utility Fund, Gas Development Fund and Traffic Safety Fund. Mayor Trevino announced at 11:05 a.m. that he was recessing the Council Budget Work Session and calling the Crime Control and Prevention District Budget Work Session to order. After the District discussed the proposed budget, Mayor Trevino adjourned the Crime District Work Session at 11:42 a.m. and recessed the Budget Work Session. Mayor Trevino called the Council Budget Work Session back to order at 12:47 p.m. Council reviewed and discussed the remaining budgets for the Special Revenue Funds Mr. Mills gave an overview of Park and Recreation Facilities Development Fund highlighting the revised 2007/2008 Park Fund Revenues and Expenditures and the proposed 2008/2009 Park Fund Revenues and Expenditures. Council concurred with the Park and Recreation Facilities Development Fund as presented by staff. Mr. Mills presented the budgets for the Promotional and Donations Funds. Council was advised of one proposed service enhancement in the Donations Fund. The Night of Holiday Magic can no longer be held at the Service Center and it is proposed to move the event to NRH2O. The move to NRH2O will require site improvements and Council was asked to consider using the Donation Fund for some additional decorations and the electrical and infrastructure work required. Council discussed the location of the event within NRH2O and the long-term ability to have fireworks at the location. Council also discussed the need to consider Christmas decorations at the new library. Staff will look at what is needed in terms of Christmas decorations for the Library. Council concurred with the service enhancement for Night of Holiday Magic. Staff discussed with Council the Drainage Utility Fund, Gas Development Fund and Traffic Safety Fund. Council discussed the allocation of the Gas Development Fund and reconfirmed the way it is being allocated. Budget Work Session Minutes August 1-2, 2008 Page 5 Mayor Trevino asked for a consensus from Council on all of the Special Revenue Funds. Council concurred with the Special Revenue Funds as presented. Mr. Mills explained the use of the Enterprise Funds. The Enterprise Funds consisting of the Utility Fund, Aquatic Park and Golf Fund were individually discussed with staff responding to questions. Mr. Mills discussed with Council the revised 2007/2008 Utility Fund Revenues and Expenses and the proposed 2008/2009 Revenues and Expenses. Staff advised that water purchases and sewer treatment are costs not controllable by North Richland Hills. Staff advised of anticipated increases in Fort Worth/Trinity River Authority water and sewer pass through rates. Mr. Mills presented the Aquatic Park Fund and staff responded to questions from the Council. Mr. Mills highlighted the attendance history of the park and discussed the Revised 2007/2008 Aquatic Park Revenues and Expenses and the Proposed 2008/2009 Revenues and Expenses. Mr. Mills presented the budget for the Goff Course Fund discussing the history of rounds of golf played, the 2007/2008 Revised Golf Course Revenues and Expenditures and Proposed 2008/2009 Revenues and Expenditures. Council discussed the number of rounds of golf played and the source of irrigation for the course. Staff was asked to look at putting in a living hedge along the freeway between Par 3 and Par 4 to hide the storage area. Council concurred with the Enterprise Funds as presented. Mr. Mills presented the Internal Service Funds consisting of the Building Services Fund, Equipment Services Fund, Information Services Fund and the Insurance Fund. Each of the funds was discussed with staff answering questions. Council concurred with the Internal Service Funds as presented. Staff reviewed with Council the Fund Balance Summary. Mayor Trevino inquired if Council had any questions and asked if they concurred with all of the Operating Budgets as presented. Members of the Council reconfirmed their consensus on all Operating Budgets presented. Councilman Sapp questioned if the City had considered along-term plan for alternative fuel for city vehicles. The City Manager advised the City had looked at alternative fuels some time ago and it was not cost effective. With the increasing cost of fuel, plans are to review again. Council discussed rail issues and efforts for a regional rail system. Budget Work Session Minutes August 1-2, 2008 Page 6 Mayor Trevino announced at 2:30 p.m. that Council would adjourn into Executive Session as authorized by Section 551.074 of the Texas Government Code for Personnel Matters to discuss Council appointed positions. Mayor Trevino called the meeting back to order at 3:35 p.m. Council began a review and discussion of the Capital Projects Budget. Ms. Curtis presented the 2008/2009 Public Works Capital Improvements Program. Mr. Curtis reviewed accomplishments for fiscal year 2008/2009. An overview was given on each of the continuing street projects. Thirteen new street projects for 2008/2009 were presented and discussed. Mr. Curtis updated the Council on two continuing drainage projects and presented seven new projects for 2008/2009. Mr. Curtis also updated the Council on the continuing utility projects and presented five new projects. After discussion and questions from the Council, Council concurred with the Public Works Capital Improvements Program. Mr. Jared Miller presented the Park and Recreation Capital Projects Budget reviewing the history and accomplishments of the one-half cent sales tax since inception and highlighting the proposed revenues and expenditures for 2008/2009, the completed projects, continuing projects and new projects. Councilman Sapp questioned the timing for the grant funding for the Little Bear Creek project. Staff will provide information to Council. Mayor Trevino asked for the Naming Committee to consider a name for the North Electric Trail. Mr. Miller presented the Central Area Recreation Center Municipal Facilities Capital project. Mr. Miller presented the 2008/2009 NRH2O Waterpark Budget reviewing the operating history of the park, the completed projects, continuing projects and new projects for 2009. After discussion and questions, the Council concurred with the Park and Recreation Capital Projects Budget and the Aquatic Park Budget. Mayor Trevino recessed the work session at 5:25 p.m. Mayor Trevino called the work session back to order on August 2, 2008 at 8:00 a.m. with all Council Members and Staff present as recorded with the exception of Mr. Hillis. Council began a review and discussion of the Municipal Facility Capital Projects. Ms. Bostic presented and discussed with Council the continuing Municipal Facility Projects Budget Work Session Minutes August 1-2, 2008 Page 7 and presented two new projects - 820 Widening Professional Services and FEMA Flood Assistance for 2007 storm damage at the Golf Course. Ms. Bostic presented and discussed with Council the following Permanent Capital Maintenance Building Projects. • HVAC Replacement 2009 • Interior Renovations 2009 • Restroom Renovations 2009 After discussion and questions, Council concurred with the 2008/2009 Municipal Facility Capital Projects. Ms. Bostic presented and discussed the Major Equipment Capital Projects consisting of the following continuing and new projects: Continuing Projects: • Ambulance Replacement • Camera Van Replacement • Cartegraph Sewer Water Software Expansion • Emergency Incident Command Vehicle Replacement • Fire Engine Replacement • Mobile Data Computer Replacement in Fire Apparatus • Police Mobile Video System Upgrade • Upgrade Motorola Centracom Radio System New Projects: • Aerial/Sign Truck Replacement • Crack Sealing Machine Replacement • Dump Truck Replacement • Fire Quint Replacement • Fuel Delivery System, Fire Stations 1, 3 and 4 • Network Infrastructure and Phone System Replacement The Council concurred with the 2008/2009 Major Equipment Capital Projects. Mr. Miller presented the 2008/2009 Economic Development Capital Improvements Program consisting of Boulevard 26 Intersection Improvements, Business Improvement and Growth Program, Commercial Redevelopment Program, Rufe Snow/Gienview Intersection Concept Study, Sign Removal Assistance Program, and Sustainable/Transit/Redevelopment Planning. Council concurred with the 2008/2009 Economic Development Capital Improvements Program. Budget Work Session Minutes August 1-2, 2008 Page 8 The City Council Members reconfirmed their consensus with all budgets and funds as presented and setting the tax rate at $.57. Mayor Trevino and each of the Council members made closing comments. Mr. Mills reviewed the budget calendar and dates for the upcoming public hearings Mayor Trevino adjourned the work session at 9:15 a.m. ~~~ry\\\ \\ u l N I I p N I~~ ~! !p s~~1CH,LgN i4j" h.Z.ff ..'0.~~,y Oscar Trevino -Mayor n '.~ m'rr~cr. crn ~ '; City Secretary