Minutes July 05, 1988CITY OF DENTON CITY COUNCIL MINUTES
JULY 5, 1988
The Council convened into the Work Session at 5:30 p.m. in the
Civil Defense Room.
PRES ENT:
Mayor Stephens; Mayor Pro Tem Hopkins; Council
Members.Alexander, Ayer, Gorton and McAdams.
ABSENT:
Council Member Boyd
1. A Council - Manager discussion was held regarding
major issues relative to the 1988-89 budget.
Lloyd Harrell, City Manager reviewed the major budget issues
for the next fiscal year which included the following:
1. General Fund Level - staff was recommending using
4270,000 of the unreserved fund balance to help balance the
operating budget.
2. Revenues - The three items listed under this item
were sales tax, property tax, and other revenues. Staff was
predicting a 7.2% increase in collections over the current
budgeted amount. Staff recommendation for the property tax was
to keep the rate at the current level of 4.5928 per 4100
valuation. Other revenues included a staff recommendation to
raise the cable television franchise tax to 5% effective
January 1, 1989.
3. New Fire Station - Staff was recommending funding
the reserve for manpower for the new station at 4120,000 for
1988-89.
4. New Positions - Staff recommended the addition of
13.25 new positions for the next budget year.
5. Salary Adjustment - Staff was recommending a 4%
salary adjustment for all job families except Service/
Maintenance, Temporary/Seasonal and Executive. The Service/
Maintenance classification would receive a 5% increase and the
Executive would receive a 3% increase.
6. Benefits Adjustment - Staff recommended these
benefits adjustments for the next budget year - TMRS updated
credit, Martin Luther King, Jr. holiday, classification system
overhaul, police incentive pay (6 months) fire holiday pay
restoration, fire incentive pay (6 months), and fire pension
plan increase.
7. Other Agency Contributions - Staff presented
recommendations from the Human Resource Committee which
included the funding of four new programs, the increase of
funding for some current agencies and a decrease in some
funding. The alternatives in this area were to keep the level
of funding at the current level which would not fund any new
programs and would not take into consideration any increases in
current funding, fund at the recommended level or reduce below
the current funding level.
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City of Denton City Council Minutes
July 5, 1988
Page 2
8. Downtown Development - Staff recommended the
funding of 449,587 for the City's share of the Main Street
Program under the current 4.5928 tax rate.
9. Health Insurance Fund - Staff was recommending
the transfer of 4170,000 to the Health Insurance Fund and
430,000 for an actuarial study. Employee contributions were
also recommended for an increase.
10. Martin Luther King, Jr. Recreation Center - Staff
recommended that the Center be funded as presented in the draft
proposed budget in the amount of 4143,088.
11. Beautification Improvements - Staff recommended
that because of the critical need for beautification
improvements in the City that one additional position be funded
for the Planning Department to assist the Parks Department in
beautification issues.
12. Visual Arts Center - Staff's recommendation was
to maintain the Visual Arts Center and provide custodial and
utility support at the same level as the City does for any
other City building.
13. Tax Exemptions for Persons over 65 - Staff
recommended increasing the exemption by 41,000 for the 1988-89
fiscal year.
14. Economic Development - Staff recommended leaving
the funding at the current level.
15. Geographic Information System - It was staff's
recommendation to lease/purchase the Geographic Information
System on a five year basis, and to fund the first year costs
with the Utility System funds.
16. Transportation Engineering - Staff recommended
funding 445,000 for new packages in this area.
Major Issues - Utility Fund
The proposed Utility budget for 1988-89 as submitted to the
Public Utility Board indicated a total revenue for the
operating budget of 481,923,000 in expenditures and 483,123,000
in revenues.
Exhibit A details all of the information presented by Harrell
for the Council.
City of Denton City Council Minutes
July 5, 1988
Page 3
2. The Council did not meet in Executive Session during
the Work Session.
The Council then convened into a joint Work Session with the
Public Utilities Board at 6:30 p.m. in the Civil Defense Room
of City Hall.
COUNCIL PRESENT:
Mayor Stephens; Mayor Pro Tem Hopkins;
Council Members Alexander, Ayer, Gorton
and McAdams.
COUNCIL ABSENT:
Council Member Boyd
PUB PRESENT:
Vice-chairman Thompson; Members Frady,
Chew, and LaForte
PUB ABSENT:
Chairman Laney
1. A joint discussion was held regarding the Denton
County Regional Water/Wastewater Study Master Plan.
Council Member Ayer presented background material regarding the
plan and requested approval of the study and funding.
Bob Nelson, Executive Director for Utilities, presented an
introduction to the study.
Tom Taylor, General Manager of the Upper Trinity Municipal
Water Authority, Inc., presented a slide presentation regarding
the study. He stated that the goal of the study was to develop
a regional strategy with alternative plans for meeting the
water and wastewater needs of the area until the year 2010.
The Council convened into the Regular Session at 7:00 p.m. in
the Council Chambers.
PRESENT:
Mayor Stephens; Mayor Pro Tem Hopkins; Council
Members Alexander, Ayer, Gorton and McAdams.
ABSENT:
Council Member Boyd
1. The Council received a presentation of the Government
Finance Officer's Association Award for distinguished budget
presentation.
Debra Fort~ made the presentation to Council.
accepted the award for Council and Staff.
Mayor Stephens
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City of Denton City Council Minutes
July 5, 1988
Page 4
2. The Council considered approval of the minutes for the
regular meeting of June 7, 1988 and June 21, 1988.
Council Member Ayer noted a typographical error on page one of
the June 7, 1988 meeting. He requested a correction.
Gorton motion, McAdams second to approve the minutes with the
noted correction. Motion carried unanimously.
Public Hearings
A. The Council considered an ordinance amending the
parking regulations of Article 15 of Appendix B-Zoning of the
Code of Ordinances of the City of Denton, Texas, to provide for
regulations for compact parking spaces; repealing Appendix
Illustrations No. 13 and 13A of Appendix B-Zoning; providing
for a maximum penalty of ~2,000 for violations thereof; and
providing for an effective date. (The Planning and Zoning
Commission recommended approval.)
The Mayor opened the public hearing.
No one spoke in favor.
No one spoke in opposition.
The Mayor closed the public hearing.
Cecile Carson, Urban Planner, stated that the ordinance was in
conjunction with the Subdivision Regulations. The purpose of
the ordinance was to provide for compact parking spaces with a
maximum of 10% of the required parking allowed for compact
parking spaces. The Planning and Zoning Commission recommended
approval with a 7-0 vote.
Mayor Stephens asked if the spaces were required to be marked
for compact cars only.
Carson replied that this ordinance had no requirements for the
spaces to be marked but that it was noted in the Subdivision
Regulations that the spaces would be marked.
Mayor Stephens stated that he would like to have that language
included in the ordinance for further clarification.
Hopkins motion, Gorton second to postpone consideration of the
ordinance until the next regular meeting for rewording and
clarification. On roll vote, McAdams "aye," Alexander "aye,"
Hopkins "aye," Gorton "aye," Ayer "aye," and Mayor Stephens
"aye." Motion carried unanimously.
City of Denton City Council Minutes
July 5, 1988
Page 5
B. The Council considered a petition of Vera T.
Gershner requesting a variance of Article 4.03 of the City of
Denton Subdivision and Land Development Regulations at 2312
Stonegate. This property was further described as Lot 4, Block
B, in The Ridge of Southridge Addition. Article 4.03 required
the maximum residential driveway approach to be 20 feet. The
petitioner was requesting a 38 foot driveway approach to a
garage fronting on Hollyhill Drive. V-45 (The Planning and
Zoning Commission recommended approval, the Citizens Traffic
Safety Support Commission recommended denial.)
The Mayor opened the public hearing.
Dr. Vera T. Gershner spoke in favor of the petition. She
stated that she was requesting a 38' wide driveway. She was in
need of a wider driveway as a family member was confined to a
wheelchair. The problem arose when they sought approval for a
curb cut.
No one spoke in opposition.
The Mayor closed the public hearing.
Elizabeth Evans, Planning Administrator, stated that the
Planning and Zoning Commission approved the request for
variance with a 5-0 vote to allow a 38' wide driveway approach.
Gorton motion, Alexander second to grant the request for
variance. On roll vote, McAdams "aye," Alexander "aYe,"
Hopkins "aye," Gorton "aye," Ayer "aye," and Mayor Stephens
"aye." Motion carried unanimously.
City Attorney Drayovitch stated that Council needed to complete
the variance request form included in the backup materials.
Conditions for the variance needed to be noted.
Gorton motion, Alexander second to accept the wording as
presented to the Council from the Planning and Zoning
Commission as rational for granting the variance. On roll
vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton
"aye," Ayer "aye," and Mayor Stephens "aye." Motion carried
unanimously. (Exhibit B)
Consent Agenda
Mayor Stephens requested that Items 4.A.3. and 4.C.1. be
removed for special consideration.
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City of Denton City Council Minutes
July 5, 1988
Page 6
Hopkins motion, McAdams second to approve the Consent Agenda as
presented with the exception of Items 4.A.3. and 4.C.1. Motion
carried unanimously.
A. Bids and Purchase Orders:
1. Bid #9874 - Wire & Cable
2. Bid #9872 - Electronic Pulse Recording System
4. P.O. #84943 - Freese & Nichols
B. Plats and Replats
Consider approval of preliminary plat of the
Frank Borman Elementary School Addition, Lot
1, Block A. (The Planning and Zoning
Commission recommended approval.)
e
Consider approval of preliminary and final
replat of Lots 2, 3, 5, 7, 8, 9, 10, 11, 12,
13, and 14, to Lots 2, 3A, 3B, 5, 7, 8A, 8B,
8C, 9A, 9B, 10, 11, 12, 13, and 14A, Section
One; and Lots 15, 16, 19, and 20 to Lots
14B, 15, 16, 19 and 20, Section Two, of the
Solar Way Addition. (The Planning and
Zoning Commission recommended approval.)
The Council considered Item 4.A.3.
Mayor Stephens questioned the wording in the back-up material
which stated that the cost of the bags were 44.20 per bag.
John Marshall, Purchasing Agent, stated that the cost should
have been stated as 44.20 per roll.
Stephens motion, Alexander second to approve Consent Agenda
Item 4.A.3. Motion carried unanimously.
3. P.O. #84937 - Arrow Industries
The Council considered Item 4.C.1.
Mayor Stephens questioned the discrepancy between the amount of
the taxes and the amount of the check for the taxes.
John McGrane, Executive Director for Finance, stated that the
check was for three parcels of land and not just for the parcel
that the refund was being requested for.
City of Denton City Council Minutes
July 5, 1988
Page 7
Stephens motion, McAdams second to approve Consent Agenda Item
4.C.1. Motion carried unanimously.
C. Tax Refund
Consider approval of a tax refund to Fleet
Mortgage - 41,051.94.
5. Ordinances
A. The Council considered adoption of an ordinance
accepting competitive bids and providing for the award of
contracts for the purchase of materials, equipment, supplies or
services.
The following ordinance was considered:
NO. 88-112
AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A
CONTRACT FOR THE PURCHASE OF MATERIALS~ EQUIPMENT,
SUPPLIES OR SERVICES; PROVIDING FOR THE EXPENDITURE OF
FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE.
McAdams motion, Hopkins second to adopt the ordinance. On roll
vote, McAdams 'aye," Alexander "aye,' Hopkins "aye," Gorton
"aye," Ayer "aye," and Mayor Stephens "aye." Motion carried
unanimously.
B. The Council considered adoption of an ordinance
providing for the expenditure of funds for emergency purchases
of materials, equipment, supplies or services in accordance
with the provisions of state law exempting such purchases from
requirements of competitive bids.
The following ordinance was considered:
NO. 88-113
AN ORDINANCE PROVIDING FOR THE EXPENDITURE OF FUNDS
FOR EMERGENCY PURCHASES OF MATERIALS, EQUIPMENT,
SUPPLIES OR SERVICES IN ACCORDANCE WITH THE PROVISIONS
OF STATE LAW EXEMPTING SUCH PURCHASES FROM
REQUIREMENTS OF COMPETITIVE BIDS; AND PROVIDING FOR AN
EFFECTIVE DATE.
McAdams motion, Hopkins second to adopt the ordinance. On roll
vote, McAdams "aye," Alexander 'aye," Hopkins "aye,' Gorton
"aye," Ayer "aye," and Mayor gtephen~ "aye." Motion carried
unanimously.
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City of Denton City Council Minutes
July 5, 1988
Page 8
C. The Council considered adoption of an ordinance
authorizing the execution of a contract between the City of
Denton and the United States Army Corps of Engineers for access
and site activities on the hydropower project at Lewisville
Lake. (The Public Utilities Board recommended approval.)
The following ordinance was considered:
NO. 88-114
AN ORDINANCE AUTHORIZING THE EXECUTION OF A CONTRACT
BETWEEN THE CITY OF DENTON AND THE UNITED STATES ARMY
CORPS OF ENGINEERS FOR ACCESS AND SITE ACTIVITIES ON
THE HYDROPOWER PROJECT AT LEWISVILLE LAKE: PROVIDING
FOR THE EXPENDITURE OF FUNDS THEREFORE: AND PROVIDING
FOR AN EFFECTIVE DATE.
Bob Nelson, Executive Director for Utilities, stated it was a
requirement of the City's Federal Energy Regulatory Commission
license that the Corps of Engineers review and approve all the
plans for construction and activity at the site. The contract
outlined and described all of the various relationships and
obligations between the City and the Corps of Engineers
regarding the project. Corps required that the City put the
money up front to do the review which would be under $60,000.
McAdams motion, Alexander second to adopt the ordinance. On
roll vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," and Mayor Stephens "aye." Motion
carried unanimously.
D. The Council considered adoption of an ordinance
authorizing the Mayor of the City of Denton, Texas, to execute
a mutual use agreement between the City of Denton and the City
of Lewisville for an 800mz trunked communication system.
The following ordinance was considered:
NO. 88-115
AN ORDINANCE AUTHORIZING THE MAYOR OF THE CITY OF
DENTON, TEXAS TO EXECUTE A MUTUAL USE AGREEMENT
BETWEEN THE CITY OF DENTON AND THE CITY OF LEWISVILLE
FOR AN 800 MHz TRUNKED COMMUNICATION SYSTEM; AND
PROVIDING AN EFFECTIVE DATE.
Rick Svehla, Deputy City Manager, stated that the agreement
would allow Denton and Lewisville to use each other's 800
system. This was part of the regulations from the FCC. It
dedicated one of the City's channels for Lewisville's use and
Lewisville dedicated one of its for the City's use.
City of Denton City Council Minutes
July 5, 1988
Page 9
McAdams motion, Ayer second to adop~ the ordinance. On roll
vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton
"aye," Ayer "aye," and Mayor Stephens "aye." Motion carried
unanimously.
E. The Council considered adoption of an ordinance
authorizing the Mayor of the City of Denton, Texas to execute a
mutual use agreement between the City of Denton and the City of
Carrollton for an 800mz trunked communication system.
The following ordinance was considered:
NO. 88-116
AN ORDINANCE AUTHORIZING THE MAYOR OF THE CITY OF
DENTON, TEXAS TO EXECUTE A MUTUAL USE AGREEMENT
BETWEEN THE CITY OF DENTON AND THE CITY OF CARROLLTON
FOR AN 800 MHz TRUNKED COMMUNICATION SYSTEM; AND
PROVIDING AN EFFECTIVE DATE.
McAdams motion, Alexander second to adopt the ordinance. On
roll vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," and Mayor Stephens maye." Motion
carried unanimously.
F. The Council was to have considered adoption of an
ordinance authorizing the conveyance of a tract of land
consisting of approximately 2907 square feet to Theron Gerald
Snider, Jr. and accepting the conveyance of a tract of land
consisting of approximately 2905 square feet from Theron Gerald
Snider, Jr.
The item was pulled by staff from the agenda.
6. Resolutions
A. The Council considered approval of a resolution
accepting the Water and Wastewater Study Regional Master Plan
for Denton County.
The following resolution was considered:
RESOLUTION NO. R88-041
A RESOLUTION ACCEPTING THE WATER AND WASTEWATER STUDY
REGIONAL MASTER PLAN FOR DENTON COUNTY; AND PROVIDING
FOR AN EFFECTIVE DATE.
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City of Denton City Council Minutes
July 5, 1988
Page 10
Ayer motion, Gorton second to approve the resolution. On roll
vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton
"aye," Ayer "aye," and Mayor Stephens "aye." Motion carried
unanimously.
B. The Council considered approval of a resolution
authorizing the Mayor to execute a security agreement on behalf
of MBank relating to the lease between the City and First
Financial Resources, Inc. (The Airport Advisory Board
recommended approval).
Rick Svehla, Deputy City Manager, stated that this resolution
would execute a security agreement. A new owner leased a
hanger from the City because the original owner relinquished
his lease. The new owner borrowed money to improve the
hanger. MBank was seeking a security agreement which stated
that if the owner, First Financial, defaulted on the rent,
MBank could sub-lease the hanger to someone else. The City
would be providing MBank with collateral for the loan it made
to First Financial.
Debra Drayovitch, City Attorney, noted that there was a section
in the lease with First Financial that would allow the City
Manager or the Mayor to execute a consent to a security
interest, not in the lease hold, but in the actual buildings
that were improved. In order to do that, it did not require
Council approval but the lease did not authorize crediting a
security interest in the lease hold itself.
Svehla replied that MBank would still be required to pay the
same lease rate to the City that First Financial was paying to
the City. If that was not done, then the lease would revert
back to the City.
Council Member McAdams questioned as to whether the language
was clear and certain as to the rights of the City with regard
to the property.
Drayovitch replied that the lease would allow MBank to only
operate the structures where the improvements were made. The
security agreement, if First Financial defaulted on the note,
would allow MBank to operate for the remainder of the lease.
She stated that the way to ~tay fully protected would be to not
grant a security agreement.
McAdams stated that if the loan had already been granted to
First Financial and the improvements had already been done, how
did granting the security agreement advantaged the City. Why
should the City grant the agreement and on their terms?
City of Denton City Council Minutes
July 5, 1988
Page 11
Drayovitch replied that it might be best to postpone further
discussion on the item until bank's attorney could be contacted
because she could not give a reason why the City should or want
to execute the document.
McAdams motion, Hopkins to postpone consideration of the
resolution until the next regular meeting. On roll vote,
McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "aye,"
Ayer "aye," and Mayor Stephens "aye." Motion carried
unanimously.
C. The Council considered approval of a resolution
accepting the Capital Improvement Plan proposed by the Planning
and Zoning Commission.
The following resolution was considered:
RESOLUTION NO. R88-042
A RESOLUTION ACCEPTING THE CAPITAL
PROPOSED BY THE PLANNING AND ZONING
PROVIDING FOR AN EFFECTIVE DATE.
IMPROVEMENT PLAN
COMMISSION; AND
Council held a discussion as to the wordin~ of the resolution
regarding formal approval of projects beyond the year 1991. It
was felt that perhaps the resolution should state that projects
beyond 1991 were under consideration and not formally approved.
Alexander motion, McAdams second to approve the resolution with
the following amendments:
Section II to read, "... to be constructed during the
forthcoming three year period, and the capital improvement
program for the electric and water utilities..."
Section III to read, "That the Council hereby takes
under consideration the attached list of recommendations of the
Planning and Zoning Commission of capital improvements for the
years 1991-92 and 1992-93".
On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," and Mayor Stephens "aye." Motion
carried unanimously.
7. The Council considered a motion authorizing the City
Manager to reallocate unutilized CDBG Administrative and 1986
Morse Street funds to the Housing Rehabilitation Program. (The
Community Development Block Grant Committee recommended
approval.)
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City of Denton City Council Minutes
July 5, 1988
Page 12
Barbara Ross, Community Development Coordinator, stated that
the excess 1987 administrative funds and the excess 1986 Morse
Street funds would be put into Housing Rehabilitation Program.
The amount of money would be approximately ~25,000.
McAdams motion, Ayer second to approve the authorization. On
roll vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," and Mayor Stephens "aye." Motion
carried unanimously.
Miscellaneous matters from the City Manager
Lloyd Harrell, City Manager, presented the following items:
A. Consideration of a motion to confirm an
appointment to the Civil Service Commission for a term to
expire in 1990. Harrell offered the name of Frank Davila as
Civil Service Commissioner for a term to expire in 1990.
Hopkins motion, McAdams second to approve the confirmation. On
roll vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," and Mayor Stephens "aye." Motion
carried unanimously.
B. Harrell stated that there would be a tour of City
facilities on July 12 for any Council Member who might be
interested.
Council Member Boyd joined the meeting.
9. There was no Executive Session held during the Work
Session.
10. New Business
No Council Member suggested any items for future agendas.
11. The Council convened into the Executive Session to
discuss the following:
ae
Legal Matters -- Under Sec. 2(e), Art. 6252-17
V.A.T.S .
Discussed County v~. Cit~ and Maverick vs.
City.
Real Estate -- Under Sec. 2(f), Art. 6252-17
V.A.T.S.
City of Denton City Council Minutes
July 5, 1988
Page 13
Personnel/Board Appointments -- Under Sec. 2(g),
Art 6252-17 V.A.T.S.
Considered a Denton representative to the
Regional Transportation Council.
Considered appointments to all City of
Denton Boards and Commissions.
The Council reconvened into open session and took the following
action:
A. Hopkins motion, Gorton second to approve the
following appointments: Curtis Ramsey - Community Development
Block Grant Committee, Dale Maddry - Data Processing Advisory
Board, and Fran Morgan - Planning and Zoning Commission. On
roll call vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens
"aye." Motion carried unanimously.
With no further business, the meeting was adjourned at 10:25
p.m.
141
N'Ni F ~R WALTERS
TY SIBCRETARY
CITY OF DENTON, TEXAS
CITY O~DENTON, TEXAS
2952C
! ~BIT A
1,it.,lOR ISSUES REPORT ON THE
PROPOSED 1988-89 BUIIGET
SUBMITTED TO CITY COUNCIL
Ju~y 5, 1988
Prepared by
The Depermen~ o£ Finance
Submitted by
LLOYD V. HARR~T.T.
City~sser
'JTY of DENTON, TEXAS
143
MUNICIPAL BUILDING / DENTON, TEXAS 76201 / TELEPHONE (817) 566-8200
July 5, 1988
TO THE HONORABLE MAYOR AND MEMB~/~S OF CITY COUNCIL AND THE CITIZENS OF DENTON:
The purpose of this report is to highlight ~aJor issues affecting the
preparation of the 1988-89 budget for the various city funds. The report follows
the same format that has been used tn prior years. There is a statement of the
major issues, alternatives for dealing with the issues, and recommendations from
the staff.
Once again, the major factor affecting the budget is the economy. However, the
projections for the next fiscal year are more optimistic than those in-the last two
years. Preliminary indications from sales tax receipts, unemployment rates, area
forecasters and the State Controller's Office are su~gestin$ that the Texas
economy has bottomed out and will experience some moderate growth during the next
fiscal year. The budget is, therefore, built on revenue forecast based upon this
premise. As you are aware, Denton has weathered the recessionary economy of the
last two years with little impact on overall city service levels. Although' there
was very little impact on service levels, there were a number of projects and
programs that were delayed because of the limited resources available. Over the
past two fiscal years a backlog of these projects and programs has occurred. The
demand for these services has grown even greater this year because of the problems
associated with past and anticipated future growth. The theme for the 1988-89
budget is to continue with the same level of general service with moderate
expansion of new prosreme where possible. The areas of expansion are primarily
areas where City Council had expressed a need for improvement in the 1988-89
Council questionnaire form. The five highest areas of rankin~ were:
Area Average Score
o Code Enforcement
o Beautification Effort
o Street MAintenance and Repair
o Storm Drainage
o Traffic Signalization
7.43
7 · 29
7.14
7.14
7.00
i44
Major Issues Report to Mayor and City Council
July 5, 1988
It was not an easy process arriving at preliminary budgeti ~roposals. Every
available resource was examined in order to provide for the continuation of service
along with moderate expansion in some service areas. With these factors in mind,
the draft proposed budget was established with the philosophy of retaining the
City's fiscal integrity while keeping current level services and providing
attention to the above mentioned concerns. In conjunction with this philosophy the
following are some of the major issues impacting this year's budget.
MAJOR ISSUES - GENERAL FDND
1. GENERAL FUND RESERVE LEVEL - Over the past few years, the City Council and
staff have been committed to bringing the undesignated fund balance of the General
Fund to an acceptable level, it was agreed that a generally acceptable
undesignated reserve fund balance level would be in the range of eight to ten
percent of total expenditures. As you are aware, it is necessary to keep an
undesignated reserve in order to allow the City to absorb unexpecte~ losses that
may occur from lawsuits, uninsured claims, natural disasters, revenue shortfalls,
etc.. Conversely, the reserve should not be so high as to create an undue burden
on the taxpayers. The followin~ is an illustration of the past three year's
unreserved balances, along with the projected balance for September 30, 1988.
General Fund
Unreserved Balances
% of Total Expenditures
As of As of As of Estimated
9/30/85 9/30/86 9/30/87 9/30/88
$1,122,131 $1,515,934 $2,301,690 $2,558,000
6.1% 7.5% 11.43% 11.35%
The alternative choices relating to the unreserved fund balance level are:
1. Allow She balance to stay at its current level.
2. Use $270,000 of the fund balance as a resource ~o balance the 1988-89
budget.
3. Use all, or a portion, of the balance to fund one time capital expenditures.
Use part of the unrese~ed b~ance aa an o~fset to the Health Insurance _
Fund.
-2-
145
Major Issues Report to Mayor and City Council
July 5, 1988
Recom~endation: Staff's recommendation is to utilize
":~270,000
of the
unreserved balance as a resource to balance the operating budget. This would then
bring the estimated fund balance to 9.11% of the proposed budget expenditures.
2. REVENUES - The second major issue deals with General Fund revenues.
A. Sales Tax - The draft budget forecasts a 7.2% increase in collections
over the c~rrent budget amount of $4,595,000. This increase assumes an estimated
current year growth of 2.12% over budget and a 5~ growth for next year. The
projected budget of $4,927,091 is $332,091 above the current year budget amount.
Part of the estimated increase is based on collections from the sales tax on
telecommunication services, and the expanded base on which taxes are collected. It
is also anticipated that the economy will grow at a rate of around 3~ for the next
fiscal year.
B. Property Tax - One of the major revenue sources to the General Fund is
the ad valorem tax. The 1988-89 draft budget proposes keeping the actual tax rate
at 5.§928 per $100 valuation. This rate will generate 512,838,864 for both debt
service payments and operations and maintenance expenditures at a 97% collection
rate. However, this is based on a preliminary roll from the County Appraisal
District and contains a 2% estimate of potential adjustments to the tax roll prior
to the official certification. This number may vary because of the number of the
valuation appeals applied for and the potential approval of those appeals.
Because of the increase in valuation on the preliminary tax roll, the tax rate
of $.5928 will generate 312,838,864 in total ad valorem taxes. Of the total tax
amount, $5~172,754 will be needed to pay debt service on the city's General
Obligation Bonds, Certificates of Obligation and Contractual Obligations. The
amount of debt service for 1988-89 is an increase of $1,027,518 over the 1987-88
debt service amount. The increase is due to the issuance of the $1,100~000 C.O.'s
for the 800 MHZ radio system~ the $500,000 airport improvement C.O.'s, the $775~000
equipment Contractual Obligations and the Capital Improvement Program General
Obligation Bonds for 1987 and 1988. It was anticipated that the revenue generated
from the radio system, the airport leases~ and growth in the tax roll would offset
the increased debt service requirements. This revenue has not materialized. In
'fact, only $32,807 of additional property tax revenue for the General Fund
operations will be available from a $.5928 levy. For 1988, there is a change in
the formula for calculation of the effective tax and the roll back tax rate.
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Major Issues Report to Mayor and City Council
July 5, 1988
Using the preliminary tax roll, the adjusted roll back rate fo~ 1988-89 would be
$.6139 per $100 valuation.
The property tax alternatives are:
1. Keep the tax rate at its current level of $.5928 per $100 valuation.
2. Reduce the tax rate to the effective rate of $.5459 per $100 valuation. It
wou~d be necessary to reduce the proposed budget by $1,171,000.
3.Raise the rate to the 8% roll back limit of $.6139.
additional $457,000 worth of revenue.
Raco~endation: Staff reco~nendation is to keep the rate at the current
level of $.5928 per $100 valuation.
Tkis would generate an
C. Other Revenues - The only other area of the General Fund where an increase
in charges is being recommended is in the cable television franchise. The staff
has been in negotiati~ns with the cable television company for over -a year. The
purpose of the negotiations is to implement a new franchise agreement. It is
anticipated that an accepted franchise agreement should be in place by January 1,
1989. The draft proposed budget incorporates an increase of the franchise taxx
revenue in the amount of $41,250. In order to generate this amount, the agreement
would raise the franchise rate from 3% to 5% for nine months of the 1988-89 fiscal
year.
The alternatives for the cable franchise are:
1. Keep the rate current and reduce the budget by $41,250.
2. Raise the franchise tax to 5%.
Recom~.ndation: - It is the staff's recommendation to
television'franchise tax to 52 effective January 1, 1989.
raise the cable
3. NEW FIRE STATION - As has been indicated in the past, the Capital
Improvement Program provides for the building of additional fire stations in the
1988-89 fiscal year. However, the Capital Improvement Program does not contain any
fundin& for manpower costs associated with the new stations which have been _
estimated at $225,000 yearly. In order to prepare for the opening of the stations,
-4-
~aJor Issues Report to ~ayor and City Council
July 5, 1988
$75,000 was budgeted for 1986-87 and was put into a reserve accOUnt.
147
The 1987-88
budget provided for another $120,000 which brought the reserve account to $195,000.
the 1988-89
The draft proposed budget keeps the funding level at $120,000 for
fiscal year, thus bringing the reserve level to $315,000.
The alternatives for funding the fire station reserve are:
1. 0nly set aside a portion of the $120,000 in the 1988-89 budget, which would
allow for the allocation of funds elsewhere.
2. Set aside $120,000 whichwill bring the reserve level to $315,000.
3. Leave the reserve at $195,000. This would allow $120,000 to be allocated
to other programs.
4. Deplete the reserve. This would free up $315,000 to be allocated to other
programs.
5. Increase the funding for the fire station to $225,000 which would
necessitate $105,000 being taken from other programs.
R~commsndation: Staff recommends the fundin~ of the reserve at $120,000 for
1988-89. This would allow the City to build up the reserve and ~ake it easier to
meet the manpower costs of $225,000 that will be necessary for the new stations.
4. NEW POSITIONS - In the 1988-89 draft budget proposal there are some new
positions recommended which will either pay for all or part of their costs
themselves, or are necessary in order to meet the community demand for additional
services.
All the position requests were closely scrutinized by the entire Executive
Review Comm4ttee, Finance Department and the Personnel Department. More than 62.75
requests were adequately Justified, but due to the tight budget, only 13.25
positions were included tn the budget proposal. Although these positions will help
in areas of tncreastn~ demand for services, we are still not able to keep up with
the growth of the city and continue to fall behind. O~ly those absolutely
essential positions that will have the offset of additional revenues, or address
critical public service demand areas, are recommended.
-5-
Major Issues Report to Mayor and City Council
July 5, 1988
The positions are as follows:
Position
Lead Building
Technician
Department/ Full-Time
Division Equivalent
Bldg. Operations 1
Main Street Director Planning Dept. 1
Utilities Cost Accounting 1
Accountant
Code Enforcement
Officer (position
funded for
6 months)
Public Works 1
Clerk/TTpist
PW/En$ineerin8 .50
Civilian Jailers
Police 2
Comments
Tb/s position is essential in being
able to keep up the maintenance of
the number of city buildings.
Much of the expense for this
position will be offset by a de-
crease in contractual maintenance
expanses.
This position will serve as
coordinator of the Main Street
Program. It will work in con-
Junction with the State Main Street
Program in an effort to redevelop
the downtown area.
This position will work with the
Utilities Dept. to develop cost
accounting information. The Public
Utility Board has requested this
type of position. Funding will bE
provided for by the Utilittei
tt-tnistrative transfer. ~
This position will increase our
staffing in this area from two to
three plus a temporary position
which is assigned from Building In-
spections. This increased staffing
should substantially increase our
code enforcement efforts through-
out the city.
This position is an upgrade from a
half-time to a full-time. It will
help address the heavy clerical
workload in this area as well as
ass-ming the clerical assignment
for the airport staff.
These position will allow us to
substantially reduce the amount of
time patrol officers must spend
processing prisoners into our jail
as well as allowing for better
security and safety in the Jail
area.
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Major Issues Report to Mayor and City Council
July 5, 1988
Position
Budget Analyst
Department/ Full-Time
Division Equivalent
Treasury 1
Warrant Officer Police
Senior Secretary Legal
.5O
Receptionist
Personnel Adm. 1
149
Comments
This position which has been
recommended in the past by the
auditors will further enhance the
availability of staff to do cost
benefit analysis, monitor perfor-
mance measures and budget analysis.
The position will report to the
Treasurer who will also assume the
title of Budget Officer.
Because of the backlog of warrants,
this position is necessary and will
be off-set by increased warrant
collections.
This position is necessary because
of the increased demand upon the
Legal Dept. and will allow the
ability to expand the collections
area.
This position will help with the
increased traffic coming into the
Personnel Office and will free
other staff members for other
assignments.
Court Clerk
Fire Maintenance
Mechanic
Personnel Generalist
(funded for 6 mouths)
Municipal Court 1
Fire Operations 1
Personnel 1
-7-
This position will help handle the
increased workload in the Municipal
Court and will be offset by in-
creased revenues,
This position will provide for a
firefi~hter to be reclassified as
a fire maintenance mechanic. In
order to keep current staffing
levels, the vacant firefighter
position will be filled. In order
to offset the additional position,
the Fire Department will not fill
the Division Comma-der position
formerly held by Paul Reed.
This position will help alleviate
the current workload of the
staff. Primary responsibilities
will be in the areas of training
assistance, interviewing, salary
surveys, research and special
projects.
150
Major Issues Report to Mayor and City Council
July 5, 1988
Position
Clerk/Typist
Department/ Full-Time
Division Equivalent
Police 1
Secretary General .25
Govt.
Comments
This position will allow increased
productivity of the officers
assigned in the criminal investi-
gation division. There is
currently only one secretary
assigned to assist the 17 CID
Officers within this division.
This is an upgrade of the present
secretary from half-time to three-
quarter time. This upgrade will
allow the secretary to handle the
increased necessary day-to-day
workload currently being done by
the City Secretary and the Adminis-
trative Secreta~.
TOTAL 14.25
Less Position Eliminated 1.0
NET ADDED 13.25
Full Time Equivalent (does not
include MI/( positions covered in
issue #10)
Recammen~ation: It is recommended that the new positions defined above be
included in the 1988-89 budget.
5. SALARY ADJUSTMENTS - The next major issue is that of salary increases for
employees. There are several possible alternatives for salary increases.
The first alternative would be to grant no annual pay adjustments.
The second alternative would be to bring the various Job classes to
minimum market as determined by the market survey conducted by the
Personnel Department. The total impact to the General Fund would be
31,870,302
3. The third alternative would be to grant a percentage increase to the
various Job families.
Recommendation: Staff recognizes that resources in the 1988-89 fiscal year
will once again be limited. However, because there were no salary range
adjustments granted in the 1987-88 budget year, staff feels that some adjustment is
necessary in order to keep us from falling further behind market. The staff also
Major Issues Report to Mayor and City Council
July 5, 1988
151
recognizes that because of very large increased health insurance' costs, employees'
costs for health care for dependents will be substantially increased next year.
Because of these factors, staff is recommending a 4% salary adjustment for all job
families except Service/Maintenance, Temporary/Seasonal and Executive. Staff is
recommending that the Service/Maintenance classification receive a 5% increase
because it is 16% behind actual market average. Staff is also recommending that
Executives Feceive a 3% increase and Temporary/Seasonal 0%. The total cost of this
proposal to the General Fund would be $594,020.
6. BENEFITS ADJUSTMENT - The benefits adjustment package that is being
recommended once again takes into consideration the items that have been postponed
in the past because of fiscal constraints.
P. ecommendation= The following benefit adjustments are recommended by staff
for inclusion in the 1988-89 draft proposed budget~
Benefit Cost
1. TM~S updated $58,300
credit
Comment
This would bring the city's service credit
up-to-date which has not been done since
1984. It is further recommended that a TMRS
update be done on an annual basis in future
years.
2. Martin Luther $10,178
King, Jr. Holiday
This would increase the number of paid
holidays for city employees from eight to
nine. The $10,178 is for actual overtime
pay. Lost productivity costs are estimated
to be $103,726.
3. Classification $34,500
system, overhaul
The city's job classification system is
in critical need of overhauling having iasc
been comprehensively reviewed nine years
ago. In order to administer wages and
salaries, a review should take place at
least every five years. The amount budgeted
is for 50% of the consultant costs only.
The remaining 50% would be incurred in
~iscal year 1989-90. Th~s amount also does
not provide costs associated for
implementation of recommendations from the
consultant.
-9-
15 2
Major Issues Report to Mayor and City Council
July 5, 1988
Benefit Cost
Police Incentive $44,248
Pay (6 months)
Fire Holiday
Pay Reetoratio~
Fire Incentive
Pay (6 months)
Fire Pension
Plan Increase
$52,516
$26,054
$13,142
Comment
This would allow for the expansion of th~
police incentive pay program. The current
program provides the following incentives:
Level/Code Monthly Payments
Level 1 $ 30.00
Level 2 $ 45.00
- $ 50.00
The expanded request includes:
Certification/Education
30 hours toward a degree
Field Training Officer
Intermediate Cert. or Assoc. Degree
Advanced Certification or Bachelors
*Figures are not cumulative
Certification
Intermediate
Advanced
Field Training
Officer
Mo. Payment*
$ .00
$ 50.00
$ ~o.o0
$12o.oo
This will pemanently address the fire
holiday pay issue by granting a pay increase
to fire personnel and shifting to a compensa-
tory time system for future holidays.
The resources in this plan will provide pay__
for the restructuring of the fire education
and incentive pay plan. The plan will
encourage advanced fire training. The plan
will also reward those who seek college level
fire tratnin~ in both technical and
managerial areas. Below is listed the
current and proposed incentive program:
Incentive
Certification Pay
Level Cur Pro
Basic/EMT $ 30 $ 0
Intermediate $ 30 $ 50
Advanced $ 45 $ 75
~aster $ 60 $ lO0
*Paramedic $ 35 $ lO0
*Paramedic pay cumulative with any one fire
certification level.
The resource for the increase allow for the
phase-in process of 1/2~ per year as agreed
to by the firefi~hters. State law allows th,
firelight,rs to increase their pensi~
contribution to 9I which must be matched b~_~
the city. This increase will put the
contribution rate at 8I.
-10-
Major Issues Report to Mayor and City Council
July 5, 1988
153
The total cost to the General
packages is $238,938.
.%¸
Fund for all of the bensfii adjustment
7. OTHER AGENCY CONTP~IBUTIONS - In the draft proposal, the staff has included
the recommendations from the Human Resource Committee. The comau[tree has
recommended the funding of four new programs. It has also recommended increases
for some current agencies and, in the case of SPAN and Handi-Hop, have recommended
a decrease in funding. The requests and recommendations are as follows:
Agency
Current
Fundin~ Levels Requests
Denton City County Nursery $ 12,000 $ 15,000 $ 14,000
Friends of the Family 32,000 35,000 33,000
SPAN 35,000 36,000 34,000
~SVP 6,800 7,500 6,800
Fred Moore Child Care 25,000 26,000 26,000
Handl-Hop 34,707 36,000 34,000
HOPE 3,000 5,000 5,000
Parents Anonymous 0 9,000 1,000
Life Planning/Health Services 0 4,480 4,480
Ann's Haven Hospice 0 12,000 2,000
Denton County Pre-Natal Clinic 0 3,000 3,000
North Texas Alcohol/Drug Service 0 10,000 0
LaLeche League 0 1~190 0
TOTAL 5200,170
$148,.507 $163,280
Recommendations
The alternatives are:
Keep the level of funding at its current level of $148,507. This would not
fund any new programs and would not take into consideration any increases
in current funding. This would release 514,773 for other programs.
2. Fund at the recommended level.
3. Reduce below the current funding level.
8. DOWNTOWN DEVELOPMENT - Another major issue is the continuing development of
the downtown area. As Council is aware, the City has been trying to establish a
Main Street Program over the past year. The 1988-89 draft proposed budget contains
a request of $39,587 that will be used in conjunction with any amounts of
contributions or in-kind services provided by the downtown merchants to fund the
Main Street Program. In addition to the ~39,587 la next year's proposed budget,
$10,000 will be carried over from the current fiscal year for total city support of
549,587. The program will allow for the hiring of a Main Street Coordinator. The
Director will work in conjunction with the State Main Street Program in order to
-11-
154
Major Issues Report to Mayor and City Council
July 5, 1988
redevelop the downtown area. The Main Street program relies he~%ily on the
activities of its manager, and 64% of the budget goes to the manager's
salary. Office space, tentatively valued at $18,000, will be provided by the
Downtown Association; $3,500 in furniture and $2,700 in supplies will make the
office functional. Main Street training by the State and other organizations
is intense and continuous. $3,700 is allocated for training and travel, which
will often be transferred to persons and orgam/zations working within the
scope of the program. Advertising promotional events is budgeted at $1,000.
This funding will not cover all program costs, but represents an opportunity
to match or leverage private and other organizations' funding. Special
services funding of $5,000 is allocated for historical architecture services,
and business consultants or will be used to pay the State a fee for such
services, if the State adopts a program for cities over 50,000 in population.
The duration of the program should be three to five years.
Alternatives regar~ing downtown development are:
1. Increase the tax rate over $.5928 ia order to generate more funds to be
allocated to the Main Street Program.
2. Make no allocation for any downtown proposal which will allow the~
$49,58? to be reallocated.
Utilize hotel/motel tax receipts for the fundi~ of the Main Street
Program. This would allow $49,58? to be re-allocated in the General
Fund.
4. Fund the Main Street Program at a total of ~49,587.
Recommendation= Staff recommends the funding of $49,587 for the city's share
of the Main Street Prosram under the current $ .5928 tax rate.
9. HEALTH INSMCE FUND - The next major issue for the General Fund is the
funding of a Subsidy to the Health Insurance Fund. The city health insurance fund
is basically a self-insured fund. Over the past several months, the fund has had
an enormous amount of "shock loss" claims. Through April 30, 1988, these claims
have totalled $292,300. It is projected that by the end of this fiscal year, the
deficit in the fund will amount to ~225,000.
-12-
Major Issues Report to Mayor and City Council
July 5, 1988
155
In order to help offset this loss, the Personnel Department 'has made several
recommendations to the City Manager. One recommendation calls for a transfer of
$170,000 to the Insurance Fund. It also allows for an actuarial study at $30,000.
Even with this allocation, indications are that the following increases ~rlll be
required of employees durin~ the next five fiscal years.
Year
Spouse Coverase
Dependent Coverase
Family Coverage
1988-89 20% 20% 30%
1989-90 20% 20% 30%
1990-91 10% 10% 20%
1991-92 10% 10% 20%
1992-93 10% 10% 20%
The General Fund portion of the $200,000 support to the Health Insurance Fund
is $111,662. With the transfer allocation and the additions/ employee
contributions, the Health Insurance Fund will still have a deficit balance through
the year. The proJectgd balances are as follows=
Year Amount
1987-88 $ (225,000)
1988-89 $ (137,646)
The alternatives regarding support to the Health Insurance Fund are as follows:
Do not provide any General Fund support and increase the employee's
contribution in order to reduce the deficit. This would allow $111,662 to
be allocated elsewhere for other programs, but would require substantial
increases in employee contributions.
e
Se
Have the General Fund and other funds with employees contribute the whole
amount to make up the current deficit and future year projected deficits.
Phase in the contributions from the General Fund over a number of years.
Do away with the self-insurance health fund and require that all employees
become members of the HHO.
Recommendation: Staff recommends the funding of the $170,000 transfer to the
Health Insurance Fund and $30,000 for an actuarial study. It also recommends the
increases for employee contributions as mentioned above.
-13-
156
Major Issues Report to Mayor and City Council
July 5, 1988
10. MARTIN LUTHER KING RECREATION CENTER - As Council ,is aware, it is:
projected that the Martin Luther King Center will be ready to open in December,
1988. The building of the center was provided for through Capital Improvement
Funds and Community Development Block Grant funds. However, those funds did not
provide for any operation and maintenance costs of the center. The center will be
approximately 20,000 square feet in size which is 8,000 square feet larger than the
current recreational centers. This will mean increased maintenance and utility
costs for the additional square footage. Although there is a larger amount of
square footage, the staffing level will be only slightly more than that at the
other centers. In addition, the hours of operation will be the same as the other
recreational centers.
The draft proposed budget includes funding of $28,936 for a recreation
specialist with the primary emphasis on youth athletics, a recreation leader with a
speciality in general children programs for $18,967, and also includes funding of
$5,754 for building attendants. Total personal services cost is $53,657.
Additional costs for supplies, services, utilities and pay back on the loan for the
heating system amount to $54,331. In addition there is *22,600 for maintenance and
$12,600 for custodial services funded in the Building Operations budget. Thus,
General Fund support for the Center totals $143,188. In addition to the General~
Fund support, additional equipment for the center will be paid for from the
Community Development Block Grand Fund and the Recreation Fund. in the amount of
$100,000 and $50,000, respectively. This brings the total funding for equipment
and fixed assets at the Center to $160,000.
The initial General Fund request for the operation, maintenance, and equipment
costs for the Martin Luther K/ng Center was $232,524 which provided for 79 hours of
operation as compared to 71 hours at North Lakes and 66. hours at Den/a and
substantially more personnel. The reduced package recommends 66 hours of operation
for the MLK Center. Total initial requests from all funding sources was $362,524.
Of this amount, $205,450 was requested for additional equipment and fixed assets.
The Executive Staff reviewed the proposal from the Parks & Recreation Department
for the funding and had reduced the amount to a total of $143,188.
The alternatives for the MLK Center are:
1. Delay opening of the center un,il after December 1, 1966 and use the
savings from that elsewhere in the General Fund.
2. Fund the MLK Center at the original request. This would add an increase oi---~
$23,886 to the General Fund for operation and $65,450 for capital equipment.
-14-
Major Issues Report to Mayor and City Council
July 5, 1988
R~commendation: Staff recommends that the Center be
the draft proposed budget in the amount of $143,088.
157
Fund at the reduced level for phase equipment proposals and staffing over a
two year period.
funded as presented in
11. BEAUTIFICATION IMPROVEMENTS - In order to address the concerns of City
Council for' improved beautification efforts, the draft proposed budget has added
~wo new positions. The first position is an additional code enforcement officer
funded for six months. This position will allow the city to better regulate code
violations through improved citation issuance and enforcement. It is anticipated
that this position will generate $2,500 in additional fines which will help offset
some of the costs of the additional position.
The addition of one officer will bring the total number of code enforcement
officers to four. However, one of the officers is a plan eTamtuer borrowed from
the Engineering Division. If the workload in the Engineering Division increases,
it may require the plans examiner to be recalled to that division sometime during
the year.
The second position is proposed by reorganizing the staffing of the Planning
Department which allows for the hiring of a f-Il-time senior planner. This
position will be able to assist the Parks Department by completing a bikeway and
sidewalk plan. The other beautification effort of the senior planner will be to
develop an entrance way plan as recommended by the Beautification Com~ittee. Other
efforts considered as part of the budget process but rejected because of the lack
of funds were=
o Ea~le and Bell Beautification Project $ 8,500
o LillianMiller Parkway Landscapin~ $ 34,840
o Contracted litter pick up in the parks $ 8,568
o Downtown Beautification $ 5,000
o Contract clean-up (litter) $ 30,000
The alternatives for beautification improvements are as follows=
1. Do not fund the new positions. This would allow $27,627 to be
allocated elsewhere within the General Fund.
2. Increase the tax rate over the $.5928 and use the increased amounts to
do further beautification efforts.
3. Fund one additional position and approve the reorganization.
-15-
1.58
Major Issues Report to Mayor and City Council
July 5, 1988
Recommendation: Staff recommends that because of the critical need for
beautification improvements in the city that the one additional position be funded
and the reorganization in the Planning Department take place.
12. VISUAL ARTS CENTER - The city, as part of its contractual obligation with
the Greater Denton Arts Council, provides maintenance, utilities and some custodial
services fo~ the Visual Arts Center. Custodial support for 1988-89 is budgeted at
$3,?50, maintenance support at $12,000 and, utility payments at $17,000. The Arts
Council had requested maintenance and improvement items totalling $53,100 as
opposed to the $12,000 recommended.
The alternatives for the Visual Arts Center are:
e
Provide the same level 'of support to the Visual Arts Center as we do
for other city buildings. This would result in a total allocations
of $32,7~0.
Fund the requests of $53,100 of maintenance and improvement items as
requested by the Greater Denton Arts Council. This would require an
additional allocations of $41,100.
3. Investigate modifying the lease agreement with the Greater Denton
Arts Council so this level of support could be reduced or elim/nated.
Recomendation: Staff's recommendation is to maintain the Visual Arts Center
and provide custodial and utility support at the same level as we do for any other
city building.
13. TAX EXEMPTIONS FOR PERSONS OVER 65 - City Council has expressed the
concern that individuals on fixed incomes, especially those over 65, are generally
not able to absorb additional property tax increases. It was discussed by Council
that, in order to address this concern consideration be given to increasing the
over 65 property tax exemption. The current exemption is $16,000. In the past,
City Council has reviewed the proposal to increase the exemption, but because of
the tight fiscal constraints has not been able to implement an increase. However,
this year Council has established an exemption goal of $25,000 to be implemented
over time. Staff has been reviewing options to achieve Council's stated position
of increasing the exemption to $25,000. Under the current number of exemptions
that are filed, every $1,000 increase would eliminate $13,338 of tax revenue to the'
Major Issues Report to Mayor and City Council
July 5, 1988
General Fund.
be $53,352.
159
If the exemption was increased to $20,000 the tax revenue loss would
If the exemption was increased to the target amount of $25,000 the
loss of revenues would increase to $120,042.
The alternatives for the over 65 exemptions are as follows:
1. Do nothing. Leave the exemption at the current amount of $16,000 and
utilize the $13,338 for another purpose.
2. Increase the exemption to $25,000 immediately and eliminate $120,042
of expenditures in the General Fund, or increase the tax rate above
$.5928.
Se
Implement a goal of increasing the exemption by $1,000 to a total of
$17,000.
Recommendation: Staff's recommendation would be to increase the exemption by
$1,000 for the 1988-89 fiscal year.
14. ECONOMIC DEVELOPMENT - The City provides monetary support for a Joint
effort between the City and the Chamber of Commerce for economic development (this
year proposed at $34,000 and $50,000 for next year). In addition, the City
provides approximately 16.6%, or $26,776, of its total Municipal Services
Department budget for economic development. The draft proposed budget for 1988-89
continues this level of support. Discussions did occur during the review process
concerning the possibility of requiring the Economic Develo~nent Office of the
Chamber of Commerce to provide this support for the City of Denton.
The alternatives for economic development are:
1. Leave the funding as it is currently allocated.
2. Require the Chamber to assume the activities that are currently being
done by the City. This would allow $26,276 to be allocated elsewhere.
Increase the City's effort in the area of economic development.
Staff's recommendation is to leave the fundin~ at its
e
Recomndatton:
current level.
15. Geographic Information S~stem - Another major issue is the installation
of a Geographic Information System. Staff has been reviewing a proposal to develop
and install a geographic info~mation system. This is a computerized software system
-17-
160
Major Issues 1{eport to Mayor and City Council
July 5, 1988
that allows for computerized mapping and informational data retri~val. The system
would be the cornerstone system for a number of future automotive functions. The
plan that is under development calls for a five year lease/purchase program with
phased in operations for various departments. The proposed implementation plan
calls for the Utility Department to be the first and only user of the system in
1988-89. The package includes additional hardware equipment for Data Processing, a
software geographic information system and additional staff necessary to fully
implement the system in the utility area. Total staff cost for the package for the
first year is $84,§63. Total first year costs of the package, including personnel,
equipment, lease, and license costs, are $246,891. Of the first year cost,' the
Utility Fund would provide the entire amount. After the first year program, the
annual General Fund portion of the cost of the system will be approximately
$120,000 per year for the length of the lease/purchase plan. After the system is
purchased, annual maintenance and personnel costs would be required.
Alternatives to th~ Geographic Information System are:
1. Do not implement the system.
2. Implement a scaled down version with Utilities being the majority user.
This would allow for a limited use system that would be used primarily by
the Utility Department.
3. Fund the five year /mplementation lease/purchase program of the Geographic
Information System.
~ecos~endation: The staff reco~nendation is to lease/purchase the Geographic
Information System on a five year basis, and to fund first year costs with Utility
System funds.
16. Transportation En~ineerin~ - The last major issue for the General Fund
deals with transportation engineering and traffic signalization. In the draft
proposed budget several new packages for the Traffic Engineering Division are
recommended. The major addition to the budget is $20,000 for contracting with a
traffic consultant. The consultant will review major traffic problems areas in the
city and make recommendations as well as examining the traffic implications of
private development.
In addition to the consultant, there is $20,000 allocated for the purchase of a
wedge concrete saw, a hot melt applicator and two Jackb-mmers. This equipment will
allow the crews to be more efficient and productive when working in the field on
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Major Issues Report to Mayor and City Council
July 5, 1988
current problem areas.
161
The last new package included is the prop6sal is $5,000 for
transportation planning. This program will allow for the purchase of the North
Texas Council of Governments' TRANSPLAN/NEDS and TRACS software programs. The
TRACS software package is a local area' site impact analysis program which tests the
impact of new developments on the local roadway system. The TRANSPLAN/NEDS
software program will provide for computer assisted transportation planning. It
will aid in.the forecasting capabilities of highway and transit networks.
The alternatives for Transportation Engineering are:
1. Eliminate from the budget the new packages. This allows for the
reallocation of $45,000 to other areas.
2. Increase the budget allocation for Transportation Engineering. This would
necessitate the finding of additional resources or expenditure reductions.
3. ~eep the new package of consulting services, equipment and software in the
proposed budge~.
Staff's recommendation is to fund the $45,000 of new
Reco~endation:
packages.
MAJOR ISSUES - UTILITY FUND
The proposed utility budget for 1988-89 as submitted to the Public Utility
Board, shows total revenues for the operating b~dget of $81,923,000 in expenditures
and $83,123,000 revenues.
New Positions - In the draft proposed budget, the electric department has 6.5
additional positions. This brings the total positions from 14~.0 to 146.5. Total
additional cost for these positions is $114,111. The positions are as follows:
1. Computer Administrator. The primary responsibility of this position will
be to act as the project manager for the AM-FM, Geographic Info~mation System for
the Utility Department. It will assist in the design of the specifications for the
system and will assist in the preparation of the requests for proposals. This
position will also help in the oversight of centraliaed computer acquisition,
inter-connects and centralized programs, maintenance. Th/s position also will
furnish assistance to all utility departments for purchase of future equipment,
trouble shooting, and training.
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Major Issues Report to Mayor and City Council
July 5, 1988
2. Secretary/Electric Administration. This secretarial position will provide
additional clerical staff to the Electric Utility which includes eight divisions.
Included in its area of responsibility w~ll be Energy Management which has been
added to the Electric Utility this past year, and the Budget Rate Adm~nistrator
functions which have been relocated to the Service Center. The present staff
consists of one senior secretary, one secretary and one clerk/typist to serve
management .personnel. Due to the additional work load imposed by the load
management and customer incentive programs, this position is being recommended for
funding in the 1988-89 budget.
3. Special Projects Supervisor/Electric Production. Tkis position will
coordinate and supervise the installation and operation of the back up diesel units
at the electric power plant. In addition, this position w~ll oversee special
projects such as remodeling activities, assessment of building needs and custom
construction projects at the plant.
4. Maintenance Apprentice/Electric Production. The maintenanc~ a~prentice
will service turbines by checking clearances on components and repairing and
replacing damage of unduly worn parts. It will service h/Eh pressure boilers,
service condensors (by locating and stopping air leaks), and cleaning tubes. It
w~ll also be responsible for the inspection and repair of general planning
equipment.
5. Electric Apprentice/Electric Communications. This position is required to
have adequate staffing to maintain the radio system for all city departments.
6. Results Engineer/Electric Production. The results engineer w~ll be
responsible for the plan and design extension modifications of the Spencer Electric
Generation plant. It w~ll act as a project engineer and coordinator of major
construction projects a~ Spencer Plan~ and will assis~ in computer programs and
computer studies of the Spencer Plant. It will study Plant performance and make
recommendations for improvements.
7. Admtutetrattve Assistant/Electric Adm~n/strattou. Thle poetttou is a
permanent part-time position which w~ll report to the Executive Dlrector of
Utilities. The position will be utilized to perform routine tasks including
document research, prepare reports, graphs, and charts as required. It w~ll gather
factual and/or statistical data, investigate customer complaints, analyze findings
and take the necessary action.
Major Issues Report to Mayor and City Council
July 5, 1988
The Water/Waste
Water Department currently has budgeted for the addition of
seven and one-half positions. This brings the total positions from 108.25 to
115.75 Total additional cost for these positions is $182,015.
1. Administrative Assistant in Waste Water Administration. This position
would bring to the Waste Water utility a full time position which is currently
being shared by Water/Waste Water and Electric Utilities divisions. The individual
will act as. secretary of the Denton County Water Study and as laision between the
Utilities Department and Customer Service division.
2. Geographical Information System Technician/Waste Water Engineering. This
position will allow for the gathering, coding and input of data bases for the new
AM-FM Geographic Information System. This position will also review data to insure
for accuracy.
3. Civil Engineer/Waste Water Engineering. This position will be responsible
for engineering design, analysis construction and facilities management. It will
also be responsible fo. management of consultant services and special assignments.
This will allow the present engineering staff to work less overtime hours and
reduce the dependency on outside services.
4. Light Equipment Operator/Sewer Collection. This position will provide
support personnel to implement OSHA standards and highway safety procedure such as
barricades and flagging when field work is required.
5. Field Technician/Waste Water Engineering. This position will be
responsible for managing and conducting field activities such as sewer filming,
sewage flow testing, pressure monitoring, fire hydrant flow/C-Factor testing and
leak detection and management of geographical information system.
6. Two Seasonal Technicians/Engineering. These technicians will be
responsible for assisting field technicians in sewage flows, testing pressure and
monitoring, etc. These positions will allow more in-depth analysis of infiltration
and flow analysis to obtain field information as required for meeting deadlines and
will allow the office technicians to meet deadlines within the office. This will
be funded at .25 full time equivalent
7. Light Equipment Operator/Water Distribution. This will allow utilities to
provide for implementation procedures initiated by OSHA and standards in highway
safety procedures.
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,16 4
Major Issues Report to Mayor and City Council
July 5, 1988
8. Water Treatment Plant Maintenance Technician/Water. This position will
provide on site maintenance at the new Ray Roberts Water Treatment Plant. The'
plant is scheduled to be operational by May, 1991. In order to allow for necessary
training and development for this technical position, it will be involved with the
construction and implement phases of the new plant. The position will be filled
approximately October/November 1988. Construction should begin in February, 1989.
ELECTRIC SUMMARY
No rats increase or decrease is planned in electric rates for 1989. However,
the opportunity for refund exists in the 1988 fiscal year. During fiscal year
1988, variable fuel costs lessened the 2.0t per KNH charge due to the ability to
purchase natural gas on the spot market prices less than contract prices. A refund
of approximately 5.251 or .4~ per K~H will reduce 1988 revenues by $2,888,000. The
staff is currently looking at ways to be able to refund this amount to the utility
customers. This will also have significant savings in the General Fund because the
General Fund is a larse user of electric utilities for ica city buildings and street
lighting program. The savings to the General Fund were used as resources for the
1988-89 budget.
WATER SU~_ ~Y
An 8.5% increase in water rates is projected effective in October, 1988. This
will be the last half of the increase needed to pay the cost for the Ray Roberts
Project with the first half occurring in 1987-88. A water rate study is presently
under way to determine the cost allocations and rate design for specific customer
classes. The water department budget is based on revenues of $10,119,000 with
expenditures of $10,198,000. The large increase in expenditures is due to RaY
Roberts payments. The fiscal year 1989 payment will be $1,882,000.
WASTE~ATERSU~iRY
No change is proposed for the sewer rate. Total expenditures
budgeted at $6,169,000. Total revenues estimated at ~6,270,000.
for 1989 are
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Major Issues Keport to Mayor and City Council
July 5, 1988
SANITATION FDND
165
The Solid Waste Department performs the function of collecting and disposing of
all residential and the majority of commercial refuse generated in the city. The
department is composed of residential collections, commercial collections and
disposal divisions. The rates for the residential service will remain at the same
level. The commercial rates will increase April 1, 1989 based on the proposal that
was submitted to Council earlier this year. The plan was a ~wo-step phased
approach that called for $.74 per cubic yard increase in roll-off charges and $.13
per cubic yard for dumpeters in this fiscal year and an additional $.?4 and $.12
increases respectively for 1989.
It is anticipated in the 1988-89 budget that $7,050 will be collected from
various recycling programs and should significantly exceed the cost of the
operation of the program. Any excess revenues from the program are pledged to
furthering beautification efforts.
On the expenditure.side, the additional packages provided in next year's budget
are one additional commercial truck driver, additional trash receptacles for the
square at a cost of $1,840, "Help Keep Denton Clean" signs at at cost of $750 and,
an expanded recycling program and a $1,000 reward for recycling. The expanded
recycling program will expand the current recycling program to include the
collection of computer paper from selected sites. The $1,000 reward program for
recycling news print will institute a program where a customer will receive a
monetary reward for recycling. This program has been very successful in other
cities and can be funded from the recycling revenues. The cost for the additional
position of commercial truck driver is $25,854 and will be offset by a decrease in
overtime costs.
SUN~ARY
This has been a very difficult budgeting process as indicated in the major
issues report. Some minor service levels were not restored in the current funding
level so that moderate new programs could be instituted. There are a few new
positions added to the budget which will allow us to address areas that have become
an increasing concern over the past two fiscal years. This repart has been an
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166
~ajor Issues Keport to Mayor and City Council
July 5, 1988
attempt to bring these issues to the forefront and highlight thew so that Council
can discuss these issues, and if corrective measures are necessary, it will allow'
for discussion and proper decision prior to the submission of the proposed annual
program of services for 1988-89.
Should you desire any additional information, or have questions prior to the
presentation of this report at the Council Work Session, please contact John
McGrane, the staff, or me, and we will be more than happy to assist you.
Lloydt~. ltarrell /
JFMcG: LVH: a f
3561F
-24-
EXHIBIT
CITY COUNCIL
CITY OF DENTON~ TEXAS
V-45
The City Council held a public hearing on July 5, 1988 to consider the petition
of Vera T. Gershner requesting a variance of Article 4.03 of Appendix A of the
Code of Ordinances of the City of Denton, Texas.
After consideration and discussion of the following criteria, the Council
approved the variance by a vote of 6-0 at its
meeting on July 5, 1988. The Council based its decision on the following
responses to the criteria:
1. Granting of the request would not violate any master plans.
No master plans apply to driveway approaches.
167
The special or peculiar conditions upon which the request is based relate
to the topography, shape, or other unique physical features of the prop-
erty, which are not generally common to other properties.
Dr. Gershner has had a home built with a four car 8arase.
The house and sarape were designed to be handicapped assessible.
An error was made when the site plan was reviewed. The error was
recosnized when the contractor applied for a curb cut permit. This
permit was not applied for until the house and ~ara~e were complete.
Hollyhill at this location has only 4 houses which would be affected.
The special or peculiar conditions upon which the request is based did not
result from or were not created by the owner's or any prior owner's action
or omission.
The owner was not at fault for the desisn of the house and
garage in relation to the City ordinances, but will be the
one who has to live with the results.