HomeMy WebLinkAboutCC 2004-07-30 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 - JULY 30-31, 2004
Present:
City Council:
Oscar Trevino
David Whitson
John Lewis
Jo Cox
Frank Metts, Jr.
JoAnn Johnson
Nancy Bielik
Tim Welch
Mayor
Mayor Pro Tem
Council member
Council member
Council member
Council member
Council member
Council member
Staff:
Larry J. Cunningham
Richard Torres
Ogden Bo Bass
Karen Bostic
Paulette Hartman
Patricia Hutson
Larry Koonce
Clay Caruthers
Margaret Ragus
Ann Fuller
City Manager
Assistant City Manager
Assistant City Manager
Managing Director Admin/Fiscal Services
Assistant to City Manager
City Secretary
Finance Director
Budget Manager
Budget Analyst
Internal Auditor / Fin. Analyst
CALL TO ORDER
Mayor Trevino called the Council Budget Work Session to order July 30, 2004 at 1 :00 p.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.
The City Manager presented a PowerPoint presentation. Mr. Cunningham gave the economic
outlook and advised of assumptions used to base the proposed budget upon. Mr.
Cunningham briefly highlighted some of the recommended service changes, impact of service
changes, and recommended service enhancements.
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 2003/04 budget, revenues and expenditures. Ms. Bostic presented the
proposed 2004/05 general fund revenues and expenditures, history of net taxable values, and
2004 appraised values. Ms. Bostic explained the increase in existing property values
averaged 1.9%. Ms. Bostic discussed changes to the general fund revenue. Ms. Bostic
explained the largest adjustment in the revised budget was to the legal department and that
Council Budget Work Session Minutes
July 30-31,2004
Page 2 of 8
the adjustment was needed because of litigation and settlement costs paid this year. Ms.
Bostic explained general legal costs are easy to estimate while litigation and settlement costs
cannot be anticipated. The adjustment was necessary to budget for current year litigation and
settlement expenses paid this year. Council was advised also that Birdville Independent
School District has agreed to reimburse the City for a portion of the cost of the school resource
officers. Ms. Bostic reviewed the status of the Reserve for Capital Improvements.
Mr. Cunningham presented a PowerPoint presentation and discussed in detail the general
fund service changes. Changes discussed were:
· Reduction of hours at the Animal Adoption and Rescue Center
· Restructuring Police Records hours of operation from 24/7 to regular business hours
· Reduce funding to add materials to the Library collection
· Staff reorganization in Fire Department to allow for the elimination of a less critical
position
· Special events and programs - continue funding major special events ("Night of Holiday
Magic") and offset expenditures for the annual Fire Department Open House and Goof
Troop program through sponsorships, donations and volunteers; reduction of
Household Hazardous Waste Collection program
· Public Information changes - reduce expenditures for printing and informational items
by printing city newsletter three times annually instead of four times annually, reducing
budget for city calendar and elimination of employee newsletter
· Reduce non-mandatory training
· Enhancement to Emergency Medical Services - fund staffing for a third front line
ambulance.
Council began a review of the schedules of the General Fund Revenues and Expenditures
Summaries with Staff responding to questions.
Councilwoman Bielik asked for Staff to explain the increase to the legal budget. Staff
explained that expenses for general legal services could be planned. Litigation costs
and settlements are based on information provided by the Attorney. Legal expenses
were increased to bring it in line with settlements that had been made during the current
year and anticipated litigation and settlement expenses forecasted by the Attorney.
Staff was asked to look at eliminating the City calendar for a couple of years and
maintain the city newsletter. After discussion, the consensus of the Council was to
delete the calendar from the budget, maintain the three city newsletters and increase
information provided to citizens in water bills and add a stamp to the back of water bill
envelope advising of important additional information enclosed.
There was discussion on the need to replace the cameras in the Council Chambers.
Council was advised of plans for the Cable Company to assist in the replacement of the
cameras.
Council discussed the video recording of the Pre-Council meetings and cost savings if
the program was eliminated. The consensus of the Council was to eliminate the video
recording of Pre-Council meetings. The audio recordings of the meetings will continue.
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July 30-31, 2004
Page 3 of 8
Council discussed credit card transaction fees charged to the city in payment of city
fees and services by customers. Council was advised that staff is reviewing the
contract and will be considering a new contract. Staff plans to come back to Council at
a later date with a recommendation on whether to charge the transaction fees back to
the users.
Councilwoman Cox suggested that the City use the water bills as a means to recruit and
provide information on opportunities to volunteer for service on boards and committees
and other areas of volunteerism available in the City.
Staff was asked if the merit increases would offset any increases to the employees'
health insurance cost. Council was advised that after increases to health insurance
costs, the employees would still realize an increase.
Council concurred with the general fund revenues and expenses discussed.
Mayor Trevino recessed the work session at 2:26 p.m. and called the work session back to
order at 2:54 p.m.
Council reviewed and discussed the property tax revenue and distribution and discussed the
effective tax rate. The effective tax rate is 56.5¢ and the proposed budget maintains the
current tax rate of 57¢ per $100 valuation. Council reviewed and discussed 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 with changes agreed to by Council
in the Communications budget.
Mayor Trevino announced at 3:15 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 3:42 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 4:00 p.m. and called the work session back to
order at 4:14 p.m.
Staff gave a general overview of the Internal Service Funds which account for the financing of
materials and services provided by one department to other departments on a cost
reimbursement basis. Internal Service Funds are Building Services Fund, Equipment Services
Fund, Insurance Fund and Information Services Fund. Council reviewed and discussed each
of the Internal Service Funds. Council was advised of a service enhancement to the
Information Services Fund. The current software system used by Animal Services will no
longer be supported and maintained by the supplier and a new system is needed to improve
efficiency of Humane Services operations and ensure continuity in maintaining accurate animal
control records.
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July 30-31, 2004
Page 4 of 8
Council commended the Building Service Staff for their upkeep of the City Buildings and
felt the staff should be recognized.
In discussion on the Insurance Fund, Council requested a more specific report on
comparison of the lost time injury rate for workers comp claims.
Council concurred with the Internal Service Funds as presented by Staff.
Ms. Bostic gave a general overview of the Enterprise Funds. Enterprise Funds are for services
that are funded directly through user fees. The costs of providing goods and services are self-
supporting. The Enterprise Funds consist of Utility Fund, Golf Fund and Aquatic Park Fund.
Ms. Bostic presented the revised 2003/2004 Utility Fund revenues and expenses and the
proposed 2004/05 Utility Fund revenues and expenses.
Mr. Bass presented Utility Fund Service changes - the utility evening and weekend crew will be
eliminated. The plans are to eliminate positions through attrition. After-hour service will still be
provided on an on-call basis.
At the Mayor's request, Councilman Welch gave an update on the Fort Worth Water
and Wastewater Advisory Committee meetings he attends as the city's representative.
Councilman Welch updated the Council on the committee's discussion of the water
rates increasing. Councilman Welch explained the reason for the possible increase in
rates.
Mr. Koonce updated the Council on the status of the City's water rate study.
Council concurred with the Utility Fund.
Council reviewed and discussed the 2003/04 golf course revenues and expenditures and the
proposed 2004/05 revenues and expenditures for the golf course. Mr. Torres discussed with
Council the need to rebuild the greens and tee boxes in the next several years as well as
possible drainage improvements along the creek channels throughout the course. The Council
concurred with the Golf Course budget presented by Staff.
Staff presented and discussed with Council the revised 2003/04 Aquatic Park revenues and
expenses and the proposed 2004/05 revenues and expenses.
Council questioned if the entry fees for the park had been compared with surrounding
parks. Mr. Torres advised a study was proposed to update the Master Plan and to
determine effective life expectancy of current rides, to determine what rides are cost
effective, maximizing use of the limited land, future rides, and clientele targeted. Study
would provide a long term master plan, budget plan and revenue policy for the park.
The Council concurred with the Aquatic Park Fund budget as presented and with all Enterprise
Funds presented.
Council Budget Work Session Minutes
July 30-31,2004
Page 5 of 8
Mayor Trevino recessed the work session at 5:36 p.m. and called the work session back to
order at 6:58 p.m.
Mayor Trevino asked if Council had any questions concerning the Miscellaneous Funds.
Council was in consensus with the Miscellaneous Funds.
Ms. Bostic presented the revised 2003/04 revenue and expenditures for the Park and
Recreation Development Fund and the proposed 2004/05 revenues and expenditures.
Mr. Torres reviewed the Park and Recreation Sales Tax Fund Service Enhancements.
. Support expansion of park system with the addition of four parks maintenance workers
to come on-line mid-year. In response to the mid-year budget review, Staff is exploring
the use of volunteers to assist in parks maintenance. Staff is considering an "Adopt a
Park" program and other volunteer programs to include providing landscaping, assisting
with litter control, beautification efforts, etc.
. Growing our economic base - Transfer of funds from the Park and Recreation Facilities
Development Fund and establish an Economic Development Incentive Fund. The fund
would be an incentive reserve that could be used for participation in future economic
development projects that would grow the city's tax base. There are no specific plans
for the use of the money at this time, but the funds would be available to provide
infrastructure necessary to support economic development projects and expenditures.
Staff will prepare a policy for Council approval that will establish guidelines for the use
of the funds in compliance with state law and continue to provide additional funding
each year from 4B sales tax revenue.
Councilman Welch commented that he felt $250,000 was not sufficient funding
and felt it should be $500,000.
Council concurred with the Park and Recreation Sales Tax Fund presented by Staff.
Council concurred with all of the Operating Budget presented.
Mayor Trevino recessed the work session at 7:35 p.m. and called the work session back to
order on July 31,2004 at 8:00 a.m. with all Council members and staff present as recorded.
Mayor Trevino recapped that the previous day's discussion included the General Fund, Debt
Service Fund, Special Revenue Funds, Internal Service Funds, Enterprise Funds, and
Miscellaneous Funds and that Council reached a consensus on all items on the agenda and
discussions. Council made the following changes - Communications budget - elimination of
the calendar, increase the flyers in the utility bills and eliminate the video recording of Pre-
Council meetings and only record audio. Mayor Trevino asked if Council had any questions on
items already discussed and requested consensus from the Council on the previous day's
discussion and changes. There were no questions from the Council and Council concurred
with the budget and funds presented the previous day and changes made to the budget.
Council Budget Work Session Minutes
July 30-31,2004
Page 6 of 8
The City Manager introduced the Park and Recreation Department Capital Improvement
Program for fiscal year 2004-05.
Staff presented a PowerPoint presentation of the 2004/05 Capital Improvements Program for
the Parks Department. Mr. Torres reviewed projects that would be completed during 2004-05
budget and projects that would be continuing. Mr. Torres highlighted four continuing projects
that contained funding changes - Holiday Heights Neighborhood Park, Little Bear Creek
Neighborhood Park, Norich Park Renovation and Smithfield Neighborhood Park. Each park's
total budget has been revised to $400,000 to bring in line with actual costs. Mr. Torres
discussed each of the new projects for 2004-05.
. Council discussed the foundation settling problem with the current Fire Station NO.1
and questioned if the foundation would affect the use of the building as a parks
maintenance facility. Staff advised the building's foundation would be evaluated prior to
proceeding with converting the Station to a parks maintenance facility. Staff advised
that unless the foundation continued to shift, they felt the foundation would not be a
problem for the Parks Department's use of the building. The weight of the parks
equipment to be stored inside the facility will be much less than the fire equipment.
. Councilwoman Johnson questioned the status of the South Electric Trail project and felt
the project had fallen behind other projects.
Council concurred with the Parks Capital Improvement Program as presented.
Mr. Torres presented a PowerPoint presentation of the 2004/05 Aquatic Park Capital
Improvement Program. Mr. Torres reviewed the financial history of the park and presented a
summary of the proposed revenues and expenditures for 2004/05. The completed projects for
fiscal year 2003/04 were recapped and continuing projects for fiscal year 2004/05 and new
projects were highlighted. Mr. Torres commented that the Parks Master Plan had been
discussed with Council the previous day.
Council suggested that Staff consider adding souvenir "Frogstein" frogs to the gift shop.
Council concurred with the Aquatic Park Capital Improvement Program presented.
Mayor Trevino recessed the work session at 9:35 a.m. and called the work session back to
order at 9:57 a.m.
Mayor Trevino advised Council had overlooked discussing a miscellaneous item during
yesterday's session. Mr. Koonce advised the Council's car allowance reimbursement policy
provides that the Finance Director is to present annually to Council the reimbursement request
forms. Mr. Koonce advised he had verified all reimbursement forms received from January
2004 to June 2004 and reported the following: Reimbursement forms have been received and
verified for Councilmen Lewis, Metts, Whitson, Welch, Councilwoman Johnson and Mayor
Trevino. Councilwomen Cox and Bielik have not submitted and received reimbursement for
car allowance.
Council Budget Work Session Minutes
July 30-31,2004
Page 7 of 8
Mayor Trevino questioned if the Council needed to address the use of their personal or
business cell phones for city business. Mayor Trevino questioned if any council members
desired to be reimbursed for city use of their personal phones. The consensus of the Council
was to continue with the current practice.
Mr. Bass presented a PowerPoint presentation of the 2004/05 Capital Improvements Program
for the Public Works Department. Mr. Bass reviewed the projects completed in fiscal year
2003/04 and gave a timeline and update on the status of each of the continuing projects. Mr.
Bass discussed new street and sidewalk projects, the 2005 Permanent Sidewalk Maintenance
Program, the 2005 Permanent Street Maintenance Program.
Council questioned if the City of Keller will participate in the North Tarrant Parkway
project. Staff did not believe Keller will be participating, but will follow-up.
Councilwoman Bielik expressed concern with the redrawing of school boundary lines by
BISD and was concerned with the possibility of students crossing Grapevine Highway
and Harwood. Council discussed the policy for construction of sidewalks to assist
students walking to school.
Mr. Bass discussed the continuing drainage projects, continuing and new utility projects.
Councilman Welch commented he liked to see projects designed-in house by city
engineer when possible.
Council reached a consensus of the 2004/05 Capital Improvements Program for the Public
Works Department.
Ms. Bostic presented a PowerPoint presentation of the 2004/05 Municipal Facility Projects.
Council was advised that before any of the improvements are made to the Municipal Court and
Recreation Center, Staff will continue to evaluate the possible relocation of the facilities and
improvements will not be made if it is determined that the facilities could be moving within the
next couple of years. The replacement of the light fixtures at the Library will also be re-
evaluated to ensure that the replacement will result in a cost benefit. There was discussion by
the Council of erroneous information being circulated by citizens regarding the relocation of
City Hall to Home Town. Council discussed outdated conceptual information regarding City
Hall being located in Home Town being found on various web sites that were not official City
websites.
Council reviewed and discussed the Major Capital Equipment budget. Council concurred with
the Major Capital Equipment Program.
Mayor Trevino recapped that the Council had discussed the 2004/05 Capital Improvements
budget which included the Public Works Capital Improvement Program, Aquatic Park,
Miscellaneous Capital Projects, Municipal Facility Projects, Park and Recreation Development
Fund, and the Major Capital Equipment Program. Mayor Trevino advised Council had
concurred with all capital improvement programs presented and reconfirmed that Council was
Council Budget Work Session Minutes
July 30-31,2004
Page 8 of 8
in agreement with the 2004/05 Capital Budget as presented by staff. All Council members
reconfirmed their consensus with the 2004/05 Capital Budget.
Mayor Trevino reconfirmed that Council was in consensus with the Operating Budget
presented with the following changes - deletion of the calendar from the budget, increase the
flyers in the utility bills, and eliminate the video recording of the Pre-Council meetings.
All Council members were in consensus with the Operating Budget with changes stated by
Mayor Trevino.
Council briefly reviewed the unfunded needs of the City.
Mayor Trevino adjourned the budget work session at 11 :34 a.m.
APPROVED:
ATTEST:
-&dlALüti~
Patricia Hutson - City Secretary
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