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Home My WebLink AboutCC 2003-08-01 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 1-2, 2003 Present: City Council: Oscar Trevino Joe Tolbert John Lewis Scott Turnage Frank Metts, Jr. JoAnn Johnson David Whitson Tim Welch Mayor Mayor Pro Tem Council Member Council Member Council Member Council Member Council Member Council Member Staff: Larry J. Cunningham Greg Vick Karen Bostic Paulette Hartman Patricia Hutson Larry Koonce Margaret Ragus Clay Caruthers Kelbert McGee Jenny Mabry Mike Curtis City Manager Assistant City Manager Managing Director Admin/Fiscal Services Assistant to City Manager City Secretary Finance Director Budget Analyst Budget Manager Internal Auditor / Fin. Analyst Public Information Director Public Works Director CALL TO ORDER Mayor Trevino called the Council Budget Work Session to order August 1, 2003 at 1 :41 p.m. with all council members present except Mayor Pro Tem Tolbert. Mayor Trevino presented opening remarks and announced at 1 :51 p.m. that the Crime Control and Prevention District Board would meet in conjunction with the City Council Budget Work Session. The City Manager gave the economic outlook and briefly highlighted some of the proposed issues within the budget. Council was advised of assumptions the proposed budget was based upon - slow economy, proposed budget at the minimum level, some service reductions, necessary expansions to services, council goals and targets for action are the priority, maintain property tax rate, $1.50 increase at NRH20 (new attraction - MLlC), $1.37 average increase to residential utility bills from increase to pass through rate, $2.00 per round ceiling increase at Golf Course. Recommended service changes highlighted were to reduce training and travel except for mandatory training, reduce tuition reimbursement, modify frequency of printed and promotional items, place a hold on minor equipment replacement in some areas, reduce some special events, delay major equipment replacements, eliminate two full time and five part time Council Budget Work Session Minutes August 1-2, 2003 Page 2 of 6 positions and eliminate the market adjustment. The City Manager discussed the impact of the service changes and how critical needs were addressed. Mayor Pro Tem Tolbert present at 2:10 p.m. Ms. Bostic 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 2002/03 budget, revised 2002/03 revenues and expenditures, and an explanation of past year encumbrances. Ms. Bostic reviewed 2003/04 general fund revenues and expenditures, anticipated changes in revenues and the history of net taxable values and 2003 appraised values. Mr. Cunningham discussed in detail the general fund service changes. · Printing & Promotional items - recommend reductions on printing and promotional items such as brochures, fliers and job postings; less color and fewer pages in some printings; print "Time of Your Life" brochures twice vs. three times per year · Part-time, Contract Labor & Overtime - recommend reductions in this area through adjustments in the use of full time staff, minor adjustments to some services, reduce the use of contract labor for Citicable productions, reduce use of outside engineers in traffic control division and less part-time hours in the Humane Services Division · Special Events & Programs - continue funding major special events - "Night of Holiday Magic" and "Northeast Family 4th", eliminate some minor special events - teen dances, fall recreation event, Masterwork Concert Series, "Crud Cruiser" events and "Warm Hugs on Wheels" · Reduce the Youth Outreach Program - eliminate "The Edge" after school program, one full time position and five part time positions · Preventive Street Maintenance Fund - $600,000 to continue the program - recommend change source of funding - fund in CIP Budget and savings from prior year street maintenance · Equipment Replacement Reductions - City Council established plan for replacement of vehicles and major equipment - recommendation is to continue plan but delay the replacement of police vehicles for one year. Council was presented with the following general fund service enhancements - · Improving security of Municipal Court - $19,400; offset by revenue from Building Security Fee · Planning for impact of expanding Loop 820 - $25,000 approved in current year budget; recommend $75,000 be appropriated from fund balance to continue this study in 2003/04 · Non-conforming Sign Removal Program - $20,000 - Establish a Sign Demolition fund to assist new businesses with the removal of old signs; funded with pay-as-you-go reserve · Multi-family Housing Inspection program - $58,235; Program was approved in the 2002/03 budget, but financial constraints delayed implementation; program to be offset with revenues from fees to apartment owners Mayor Trevino recessed the work session at 3:15 p.m. and called the work session back to order at 3:30 p.m. Council Budget Work Session Minutes August 1-2, 2003 Page 3 of 6 Council began a review of the schedules of the General Fund Revenues and Expenditures with Staff responding to questions. Councilman Whitson asked that consideration be given to sending reports and information to council electronically rather than by fax. Council questioned if council seminars and luncheons could be reduced. The City Manager advised that council travel had been reduced to meet minimum service levels. Staff was asked to in future years separate in the activity measures for Human Resources the number of full-time positions posted from part-time positions posted. Mayor Pro Tem Tolbert asked that future maintenance costs be included in information provided to council when new land is purchased for park purposes. There was discussion on the operating cost of the Library and the ability to build the new library and provide support while maintaining fiscal responsibility. It was suggested that the funding of the operating cost of the library be provided to Council when consideration is given to proceeding with the next step to design and construct the new library. Councilwoman Johnson expressed concerns with park operating and maintenance costs not coming out of the one-half cent sales tax. Mr. Cunningham explained that the one-half cent sales tax can only be used for operating and maintenance costs for new facilities. The tax can not be used for facilities that were in existence at the time the tax was approved - those operating and maintenance costs must come out of the general fund. Council asked Staff to explore whether an ordinance regulating false alarms is needed. Council discussed the expansion of Fire Station Two and the future need to fund a third ambulance. Staff advised that upon the completion of the new fire stations, this would be considered and discussed next budget year. Council concurred with the general fund revenues and expenditures. Council reviewed and discussed the Schedules for the Summary of Property Tax Revenue and Distribution and the Summary of Revenues and Expenditures for the General Debt Service Fund. The Council reached a consensus of maintaining the current tax rate of 57¢ per $100 valuation and the General Fund Budget as presented. Ms. Bostic presented the Special Revenue funds giving a brief explanation of the purpose of the funds. Council Budget Work Session Minutes August 1-2, 2003 Page 4 of 6 Mayor Trevino announced at 5:35 p.m. that he was calling the Crime Control and Prevention District Budget Work session to order. Mayor Trevino called the Budget Work Session back to order at 6:12 p.m. Council reviewed and discussed the Promotional Fund, Donations Fund, Special Investigation Fund and Drainage Utility Fund. Council concurred on the funds. Mayor Trevino recessed the work session at 6:20 p.m. and called the work session back to order at 7:20 p.m. After Staff gave a general overview of the Internal Service Funds, Council reviewed and discussed the Building Services Fund, Equipment Services Fund, Insurance Fund and Information Services Fund. Council requested the City Manager assess the pros and cons of contracting the servicing of city vehicles versus servicing in-house. Council discussed appropriating the $65,000 in Council contingency for special projects to the Self Insurance Reserve Fund & transferring the $130,000 in the Water Park Fund to the Self-Insurance fund reducing the self-insurance fund appropriation of reserve to zero. Mayor Trevino recessed the work session at 8:20 p.m. Mayor Trevino called the work session back to order on August 2 at 8:04 a.m. with the same members present as recorded. The Council reviewed and discussed the Enterprise Funds - Utility, Golf Course and Aquatic Park. Council was advised of a proposed increase of $2.00 per round in golf fees and a $1.50 increase at NRH20. The Council reached a consensus of the Enterprise Funds as presented by Staff. Ms. Bostic presented the revised 2002/03 Park and Recreation Fund revenues and expenditures and the proposed 2003/04 revenues and expenditures. Council discussed the need for staff to continue to monitor the city's ability to maintain parks as new parks are purchased and brought on line. Council suggested adding a line item in the Summary "Balance in Reserves". Council concurred with the Park and Recreation Fund as presented. Mayor Trevino recessed the work session at 9:25 a.m. and called the work session back to order at 9:55 a.m. Staff provided Council with a Fund Summary that was briefly discussed by the Council. The Council agreed for the inclusion of the summary in future budgets. Council Budget Work Session Minutes August 1-2, 2003 Page 5 of6 Mr. Koonce gave a explanation of restricted and unrestricted reserves. Staff presented the proposed Capital Projects Budget for fiscal year 2003-04 totaling $44,842,657. Staff presented a PowerPoint presentation of the 2003/04 capital improvement program for the Parks Department. The capital improvement program history and previously approved projects were reviewed. The proposed 2003/04 projects were highlighted. Councilman Whitson asked staff to report back on the type of netting planned for Walker's Creek Park. Mayor Pro Tem Tolbert asked for a report on maintenance protection for the public art pieces. Council concurred with the Parks Capital Improvement Program as presented. Council reviewed the capital improvement program for the Aquatic Park and concurred with the program as presented. Mr. Mike Curtis presented a power point presentation of the 2003/04 capital improvements program for the Public Works Department. Mr. Curtis briefly reviewed the projects completed during the past year. Highlights were given of the proposed continuing street projects, new street and sidewalk projects, the 2004 Preventive Street Maintenance Program, the 2004 Permanent Sidewalk Maintenance Program, continuing and new drainage projects, continuing and new utility projects. Mayor Pro Tem Tolbert requested a report at a pre-council meeting on the street maintenance program - i.e., slurry seal, white topping, etc. The Council concurred with the proposed 2003/04 Public Works Capital Improvement budget. Mayor Trevino recessed the work session at 11 :55 a.m. and called the work session back to order at 12:40 p.m. Council reviewed and discussed the major capital equipment program and municipal facility projects. Council discussed whether there was a need at the present time to staff a third ambulance. Staff discussed with Council the recommendation of the Fire Department Study as it pertained to implementing and staffing a third ambulance. Council concurred with Staff that it would be included in next year's budget and Council would have the option to finance the third ambulance. Council reached a consensus on the proposed 2003/04 Miscellaneous Capital Projects budget. Council Budget Work Session Minutes August 1-2, 2003 Page 6 of 6 Council reached a consensus on all budgets as presented and maintaining the 57¢ tax rate per $100 valuation. Mayor Trevino adjourned the budget work session at 1 :26 p.m. on August 2, 2003. APPROVED: ..~....).~~'^~.'''/'' ~~~~n" :.;....;.:",~. ~ /~/. '\. \ '0' r .....- ~.,..\ h !£i ¥ ;~... ... ~ ~ ..:- At,.Tt=~.r: .....:f' 1-" -..... ........ ~~ "" ~ ,-: 1111 .. "" ~ "''''''.,.\''~ tttvv¿¿ Patricia Hutson - City Secretary