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Home My WebLink AboutCC 2010-06-16 Minutes MINUTES OF THE WORK SESSION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS HELD IN THE LIBRARY COMMUNITY ROOM, 9015 GRAND AVENUE, NORTH RICHLAND HILLS, TEXAS, JUNE 16, 2010 — 6:00 P.M. 1. CALL TO ORDER Mayor Trevino called the work session to order at 6:05 p.m. Present: Oscar Trevino Mayor Ken Sapp Mayor Pro Tem, Council, Place 2 John Lewis Council, Place 1 Tom Lombard Council, Place 3 Tim Barth Council, Place 4 David Whitson Council, Place 5 Tim Welch Council, Place 7 (present at 6:33 p.m.) Staff Members: Mark Hindman City Manager Karen Bostic Assistant City Manager Jared Miller Assistant City Manager Jimmy Perdue Director of Public Safety Vickie Loftice Managing Director Mike Curtis Managing Director Patricia Hutson City Secretary Larry Koonce Director of Finance Mark Mills Budget Director Mary Peters Public Information Officer Elizabeth Reining Assistant to City Manager Patrick Hillis Human Resources Director Craig Hulse Economic Development Director Jennipher Castellanos Budget Analyst Shirley Hoover Internal Auditor /Financial Analyst Absent: Scott Turnage Council Place 6 2. DISCUSS ANNUAL BUDGET AND PLAN OF MUNICIPAL SERVICES FOR FY 2009/2010 AND PLANNING AND PROGRAM OF SERVICES FOR FISCAL YEAR 2010/2011 City Council Work Session Minutes June 16, 2010 Page 2 of 4 Mr. Mark Hindman, City Manager, made introductory comments and gave an overview of the budget process. A PowerPoint presentation was presented by Staff. Mr. Mark Mills presented the FY 2009/2010 revised budget discussing the preliminary submissions received from the departments for anticipated year end expenditures, reviewed the revenue impacts to the budget and compared the 2010 adopted to the 2010 revised budget. Mr. Craig Hulse, Economic Development Director, presented an overview of the economic picture discussing the economic outlook and national, state and local trends. Councilman Welch present at 6:33 p.m. Mr. Larry Koonce, Finance Director, discussed the preliminary tax roll released in May, reviewed the distribution of property taxes and discussed appraised property values. • Mayor Trevino requested Council be provided at the August work session a graph of debt service versus maintenance and operating for the previous ten years. Mr. Mills gave an overview of the Fiscal Year 2011 preliminary budget. He discussed preliminary revenue and expenditure submissions, compared the Fiscal Year 2011 preliminary to the Fiscal Year 2010 adopted revenues and expenditures, reviewed the history of net taxable values and sales tax receipts and reviewed the 2009/2010 budget cuts. Staff discussed with Council budget considerations as decisions are made to balance the 2010/2011 budget. Considerations discussed with Council were merit increases, stability program, market adjustments, health insurance costs, GASB45, TMRS contribution rates and the possible impact to the City of providing security for the Super Bowl and its related event. Mayor Trevino recessed the work session at 7:26 p.m. and called the work session back to order at 7:34 p.m. with the same members present as previously recorded. Staff discussed with Council the balancing of the budget. Staff is evaluating short and long -term costs and benefits of delaying or deferring a spectrum of asset management investments as a means of balancing the budget. Some of the options under consideration for delay or deferral include the delay of infrastructure maintenance, equipment maintenance, and capital improvements and defer facility improvements. Staff discussed with Council short term and long term consequences that could be caused by the delays or deferrals. Another option under consideration for balancing the budget is to reduce contributions to the Internal Service Funds. Staff is evaluating each City Council Work Session Minutes June 16, 2010 Page 3 of 4 of the internal service funds to establish a new minimum level of funding and the necessary contribution levels to keep the funds solvent. Also under consideration is the utilization of the undesignated /unreserved fund balance to supplement revenues for the coming year. Staff reviewed the City's policy on undesignated /unreserved General Fund balance and advised if the undesignated /unreserved fund balance is utilized in the budget for the upcoming year, it is recommended its use be restricted for one time expenditures. Possible changes in service levels were also discussed. The City's budget situation dictates that sustainable cuts be made that will result in changes to service levels. As changes to service levels are considered two primary options will be considered — the elimination of programs deemed to be the lowest priority among city services and reduction in service levels. The funding of City sponsored special events and City memberships will also be reviewed as staff continues to look at funding options to provide a balanced budget. Staff also discussed with Council possible revenue increases that could be considered. Staff will submit to Council a budget utilizing the same 57¢ tax rate as in previous years. Staff requested to review fees and charges for service to determine how they compare to the market and their level of cost recovery. • Council concurred that all of the special events and city memberships should be reviewed. Staff is to provide Council with a list of special events and their costs. Council also discussed that in addition to city memberships, consideration should be given to reducing luncheons and sponsorship costs. • Council concurred with reviewing fees and charges for services and discussed the need to look at the long term impact reductions to the budget will have on future budgets and services. Mr. Koonce reviewed the Fund Balances for FY 2009/2010. Staff discussed with Council the following future issues: Southside Recreation Center — There was extensive discussion on options for a recreation center on the Southside of the City. • The consensus of the Council was for Staff to leave it in the forefront as an issue, but not to initiate it as a project at this time. Animal Shelter — Council was updated on the future expansion of the City's animal shelter. Consolidated Dispatch and Jail — An update was provided on the consolidation of local jurisdiction dispatch centers and detention centers. CAD /RMS Replacement — Council was advised that the City's Public Safety software vendor will stop supporting the UNIX -based Computer Aided Dispatch system during calendar year 2015. The systems are being phased out. Public Safety and Information Services Staff will begin researching options to replace the system. City Council Work Session Minutes June 16, 2010 Page 4of4 Radio Replacement — Council was advised of the need to plan for the replacement of the radio system used by the City. The system, owned by the City of Fort Worth, supports Fort Worth public safety radios as well as radios from 22 other jurisdictions and organizations including North Richland Hills. The City of Fort Worth has begun plans to implement a new interoperable radio system. North Richland Hills needs to begin formulating a plan to secure funding to ensure the City will be in a position to take advantage of future radio system opportunities. 3. ADJOURNMENT Mayor Trevino adjourned the work session at 9:06 p.m. \\\\\\ � `Iw ou c uuwa A P P R i: D: ,,,,,,,, n :.� , /� r :r Oscar Trevino — Mayor V . €ST: . y /44,° nnWUmnn w `�\\o ,961/711C461- Z%(,6,0-‘— Patricia Hutson — City Secretary