Minutes December 19, 1989310
CITY OF DENTON CITY COUNCIL MINUTES
DECEMBER 19, 1989
The Council convened into the Work Session at 5:15 p,m. in the
Civil Defense Room.
PRESENT: Mayor Stephens; Mayor Pro Tem Ayer; Council
Members Alexander, Boyd, Gorton, Hopkins and
McAdams.
ABSENT: None
1. The Council convened into the Executive Session to
discuss legal matters (considered action in Denton County vs.
City and In Re: Flow), real estate and personnel/board
appointments (considered an appointment to the Building Code
Board).
5:45 p.m.
The Council then convened into open session.
1. The Council received a report on the telephone system
from ~Mel Horne of Doug Arnold, Ltd.
Lloyd Harrell, City Manager, reviewed the history of the ~ystem
and the process involved in choosing a new system.
Mel Horne, Doug Arnold, Ltd., stated that the present system
was at capacity and had out lived its usefulness. There was no
control of long distance costs and an extensive use of
off-premise extensions. Four bids were received for a new
system with GTE being the low bidder. The new system would
have increased capacity as well as features such as automatic
route selection, call detail recording and reporting, automatic
call distribution, voice mail, battery backup, music on hold,
message waiting light and TI carrier service. Horne reviewed
the technical aspects of the four systems and recommended that
the Council approve the bid from GTE.
2. The Council received a report and gave direction to
City staff regarding solid waste charges and licensing fees.
Lloyd Harrell, City Manager, stated that staff was developing
specifications for bids for exclusive and non-exclusive
providers for solid waste collection. This process would take
approximately four to five months to complete. Council had
asked for a survey regarding what was being charged in
surrounding communities in order to determine if an interim
license fee and a small rate increase should be implemented in
the City of Denton. This license fee and rate increase would
allow the City to break even during the budget year. Staff was
recommending a fee between 5-10% and was asking for Council
direction.
City of Denton City Council Minutes
December 19, 1989
Page 2
Jerry Cott, Government Relations Committee-Chamber off, Commerce,
suggested that a franchise fee be placed on both City and
private haulers.
City Manager Harrell replied that certain projects such as City
beautification and recycling was sponsored by the Solid Waste
Department and thus was contributing more than a franchise fee
would cover.
Consensus of the Council was to have staff prepare the
documents necessary for the license fee and rate increase for
the next regular Council meeting.
3. The Council received a briefing on and discussed
pr'oposed revisions to the contracts for hotel/motel occupancy
tax recipients and the hotel tax ordinance and considered
extending current contracts through January, 1990.
Debra Drayovitch, City Attorney, presented a summary of Council
Committee recommendations and how the proposed contracts
differed from the current contracts. Under present contracts,
hotel tax revenues were paid to three entities: the Chamber of
Commerce, the North Texas Fair ASSociation, and the Denton
Cultural Confederation. The Chamber and the North Texas Fair
ASSociation did not regularly fund other agencies from hotel
tax revenue. The Denton Cultural Confederation, was
established as a conduit to distribute hotel tax revenue to the
Greater Denton Arts Council, the Denton County Historical
Foundation, and the Denton County Historical Museum. The
Council Committee recommended that the City have contracts with
each of the five entities regularly receiving hotel tax
revenue. The Council Committee also felt that if the City were
to continue to pay hotel tax revenue to the Arts Council for
the renovation of the Steam Plant building, the City should
have two contracts with the Arts Council, one relating to the
renovation project and one relating to the promotion of the
arts. Staff had developed an alternative to the proposed
contract for the renovation project. The City Council might
want to consider simply retaining the one percent in a separate
account for that purpose. The Council Committee recommended
separate contracts for the Denton County Historical Museum and
Denton County Historical Foundation with an allocation of the
one percent between them. Those two entities had agreed to the
separate contracts. Other changes based on revisions in the
State law and the Committee's recommendations were (1) defined
hotel tax revenues, (2) added a provision that hotel tax
revenue may be spent for administrative costs only if they were
'incurred directly' in performing authorized activities, (3)
added a provision that revenue may not be spent for travel
unrelated to an authorized activity or job performance, (4)
added a provision that the agency submit and Council approve
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December 19, 1989
Page 3
in advance the annual budget, (5) added a provision.~requiring
an agency to maintain a separate account for the funds received
and prohibited commingling with other funds, (~)' added a
provision that the City Manager be given notice of the meetings
of the governing bodies of recipients, and that those meetings
be open to the City Manager.
Consensus of the Council was to continue a work session
discussion at the next regular Council meeting before meeting
with each entity to discuss provisions of the new contracts.
Current contracts would be extended through January 1990.
The Council then convened into the Regular Session at 7:00 p.m.
in the Council Chambers.
PRESENT:
Mayor Stephens; Mayor Pro Tem Ayer; Council
Members Alexander, Boyd, Gorton, Hopkins and
McAdams.
ABSENT: None
Mayor Stephens presented Bob Nelson, Executive Director for
Utilities, a plaque of appreciation from the Texas Municipal
League.
1. The Council considered approval, of the minutes of the
Regular Session of September 19, 1989, November 7, 1989, the
Joint Session of November 13, 1989, the Executive Session of
November 15, 1989, and the Regular Session of November 21, 1989.
Council Member Gorton asked that Exhibit "B" in the November
21, 1989 minutes reflect whether the document was a staff
analysis or a SWAC recommendation.
Mayor Pro Tem Ayer noted a typographical error on page 26 of
the November 7, 1989 minutes which should have read
"privatization" instead of "private"
Gorton motioned, Hopkins seconded to approve the minutes with
the noted amendments. Motion carried with a 6-0-1 vote with
Council Member Boyd abstaining as he was not present for one of
the meetings.
2. The Council received comments from Roy Appleton, Jr.,
Bill Doig, and F'rank Martino of the Senior Management Council
representing the Denton Chamber of Commerce regarding the
Freeport Amendment.
City of Denton City CounCil Minutes
December 19, 1989
Page 4
Bill Doig, Senior Management Council of the Denton Chamber of
Commerce and Plant Manager of Peterbilt, stated that the voters
in Denton County showed overwhelming support (75%), for the
Freeport Amendment. To uphold the Freeport Amendment meant a
strong support of economic development in the community. The
Chamber of Commerce and Peterbilt hoped that the City was
farsighted enough to look into the long-term. In the-long-term
the City, County and School District needed to develop the tax
base. The way to do that was through economic growth, through
economic development in the business community. The Freeport
Amendment would not affect the 1990 budget for the City and
School District. There was still a lot of time to plan ahead.
He stated that Peterbilt was in favor of the Mayor's suggestion
to form a task force to look at where the City, County and
School District could go and plan for the future. For the
long-term, the Freeport Amendment needed to be upheld.
Council Member Boyd stated that he understood that if the
CoUncil did not act to reinstate the taxes on the Freeport
items, that the City would lose approximately $446,000 in tax
revenue in 1990.
Doig stated that he understood the City would not lose_ any
revenue until 1991. He understood the City's budget for 1990
was based on 1989 revenue. All industry would continue to pay
their 1989 taxes based oa the present tax base.
Frank Martino, Chair-Senior Management Industrial Committee,
stated that his business was within the City limits, his
business chose City power over TP & L, and paid City taxes. He
stated that within the City of Denton there had been three
occurrences that the City did not have any control over which
had benefited the City. The first major benefit was I35 east
and west with the split in Denton. The City did not have any
control over that but it made Denton a pivotal point of a
tremendous growth area. The second benefit was the Dallas-Fort
Worth Airport. It had a great effect on Denton. The third
benefit was the Alliance Airport. He felt that air freight
would be the next ma~or emphasis in the area. The Alliance
Airport would draw more businesses for central distribution
centers. Growth would come to the area but would it come to
the City. A message would be sent to industries looking at the
area if the City refused to grant the Freeport Amendment.
Roy Appleton, Jr. stated that he was speaking as a
representative of Denton Publishing Company, the Senior
Management Council, and as Chairman of the Denton Economic
Development Advisory Board. The issue was included in the
recent State election as a means of helping rebuild and
broadening the state's economy and subsequently its tax base.
The fact that the voters wanted the economy improved and
approved of this as one means of doing so was demonstrated by
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December 19, 1989
Page 5
the overwhelming majority who voted it throughout Tex~s, in the
City of Denton and Denton County. The corridor along I35W from
Fort Worth through north and northeast Tarrant County'to Denton
showed every indication of being the next great growth area in
the State. The acquisition of large tracts of land in Denton
and Tarrant Counties by a few large players confirmed that
potential. Fort Worth, Denton County and the Denton
Independent School District had approved the Freeport tax
exemption. The City of Dallas had approved the tax after
1990. A vote to deny or delay a decision would send a strong
negative signal about the City of Denton to companies
interested in Denton and to everyone in the economic
development arena. The argument advanced by some that to allow
the exemption in 1990-91 would not allow enough time to adjust
budgetary matters was hard for the businessman to understand.
The argument that time was needed to collect data and to
determine what the exact impact would be was debatable.
Because it was questionable whether truly accurate data could
even be collected. Denton's economy needed improving and the
Freeport exemption 'was one tool to help it improve. This was
an investment in the future, not a gift to some special
interest. He requested approval of the amendment.
Council Member Boyd stated that if the amendment were approved
for 1990, the effect would be to reduce the next budget year
appropriations by approximately one-half million dollars or
raise the tax rate two cents in order to make up for the lost
money. It was troubling him that what was happening was that
the tax burden was being shifted from the manufacturing
industries to the homeowners. He asked Appleton if that was
the appropriate thing to do.
Appleton replied that Boyd may have left out one possibility.
New business might come to Denton to broaden the tax base and
make up the difference. Boyd's assumption was what the City
had currently was what the City would have in the future.
Appleton's position was that this was an investment. He felt
that by following the will of the people, new and additional
business would be brought to Denton that would increase
revenues rather than restrict revenues. A lot of businesses in
Denton would not be affected by the amendment. He was not
proposing shifting the tax off of a few industries on to the
property owner. He believed it would increase the tax base for
all and would lighten the load for everybody.
Council Member Boyd stated that the Council had to make
decisions in current times. Appleton might be right that over
a period of years that the money would be replaced by industry
coming in. The question was when would it come in and would it~
come in in enough quantity to make up that significant amount
of money. There was a small group of businesses which would
get a very large impact from this amendment. Most of the rest
of the businesses would not. He stated that in effect Appleton
was asking the average citizen to subsidize this economic
development.
City of Denton City Council Minutes
December 19, 1989
Page 6
Appleton replied that he was asking the Council to follow the
wishes of the citizens as expressed at the polls to make this
investment in the future. The voters chose to, make that
investment by nearly a 70% vote.
Council Member Alexander stated that he was not sure that the
voters would remember and fully agree with the same principal
next August when the Council would be talking about setting the
tax rate for the following fiscal year. If approved, the
Council would have to recognize that it would have some
repercussions and probably a reduction in City services or an
increase in the City tax rate. He wanted a pledge of
cooperation from the Chamber to work with the City when those
decisions needed to be made.
Appleton replied that the Chamber would be happy to work with
the City to explain the Freeport Amendment to citizens.
Council Member McAdams felt that in talking to the average
working person owning a house, not a single person had the same
kind of zeal for the amendment when it was suggested that it
either meant a reduction in service or an increase in taxes for
them. Then they want to take another look at the amendment and
wait a little bit. The Council did not want to be pushed into
letting something go that they could not get back. The City
had demonstrated a number of ways its commitment to economic
development. The Council was not saying that the amendment was
not a good idea. It was saying take another look at the
amendment and make sure what it was doing.
Mayor Stephens felt that the question was when and how to grant
the exemption. January first was the deadline for 1990. April
first was the deadline for subsequent years. The Council could
waive the exemption as late as July when figures were obtained
from the Central Appraisal District. Questions were raised on
how to keep services the same with the reduction in money.
3. The Council received comments from Jesse Coffey
regarding the Freeport Amendment.
Mr. Coffey withdrew his request to address the Council.
Public Hearings
A. The Council held a public hearing and considered
adoption of an ordinance providing for a change from Planned
Development (PD-124) for Single Family Seven (SF-7) to Single
Family Seven (SF-7). The site was approximately 7.1156 acres
located on the north side of Silver Dome Road, south of Grant
Parkway, and east of Greenfield Parkway. Z-89-017 (The
Planning and zoning commission recommended approval.)
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December 19, 1989
Page 7
The Mayor opened the public hearing.
Bill Tinsley, Director-Denton Baptist Association, s%ated that
this was a request for a change of zoning from Planned
Development Single Family to Single Family for the development
of a church. There were no anticipated problems with the roads
around Hodge School during non-school hours.
J. B. Strange, owner of property in the area, stated that he
was in favor of the proposed development. He was involved in
the original zoning of the property and had reviewed the plans
for the property. He was in agreement with the proposed plans.
Ken Cartwright, Business Manager-First Baptist Church of
Denton, stated that the new church would be a mission church
sponsored by the First Baptist Church. He felt the new church
would be a part of economic growth in the community.
NO one spoke in opposition.
The Mayor closed the public hearing.
Frank Robbins, Executive Director for Planning, showed slides
of the area of the proposed zoning. The developer would have
to build sidewalks and would have landscaping requirements.
Staff felt that there were enough regulatory controls in place
with the Landscape Ordinance and Subdivision Regulations to
take care of any existing problems. The Planning and Zoning
Commission recommended unanimously to approve the zoning case.
The following ordinance was considered:
NO. 89-184
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING
FOR A CHANGE FROM PLANNED DEVELOPMENT TO SINGLE FAMILY
(SF-7) ZONING DISTRICT CLASSIFICATION AND USE
DESIGNATION FOR 7.1156 ACRES OF LAND, LOCATED ON THE
NORTH SIDE OF SILVER DOME ROAD, SOUTH OF GRANT
PARKWAY~ AND EAST OF GREENFIELD PARKWAY~ AS IS MORE
PARTICULARLY DESCRIBED HEREIN; PROVIDING FOR A PENALTY
IN THE MAXIMUM AMOUNT OF $2~000.00 FOR VIOLATIONS
THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE.
McAdams motioned, Hopkins seconded to adopt the ordinance. On
roll vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens
"aye." Motion carried unanimously.
City of Denton City Council Minutes
December 19, 1989
Page 8
B. The Council held a public hearing and ¢.onsidered
adoption of an ordinance providing for a change from Planned
Development (PD-109) to Single Family Seven (SF-7) -for 22.914
acres of land located east of Audra Estates Subdivision,
northeast of Mack Place Subdivision, and northwest of Bellaire
Heights, approximately 1000 feet south of Audra Lane.
Z-89-018 (The Planning and Zoning Commission recommended
approval.
The Mayor opened the public hearing.
Bud Hauptman, Metroplex Engineering, presented overhead
transparencies detailing the area and the street arrangements.
Council Member Gorton left the meeting.
Hauptman stated the proposed development would have better
street arrangements and complied with SF-7 zoning.
Council Member Boyd stated that one of the comments from an
adjoining land owner was that access should be from
Mockingbird. Was the property contiguous with Mockingbird.
Council Member Gorton returned to the meeting.
Hauptman replied that the property was separated from
Mockingbird. Additional land would have to be purchased and
the zoning changed in order to provide any type of access to
Mockingbird.
No one spoke in opposition.
The Mayor closed the public hearing.
Frank Robbins, Executive Director for Planning, stated that the
only condition that was added to the Planned Development that
would separate it from any other SF-7 zoning district at the
time the planned development was granted was that sidewalks
would be required on one side of the street. All other
standards of SF-7 zoning at that time would apply. The
Subdivision regulations had changed and now required sidewalks
on both sides of the street. This proposal would improve the
street alignment.
Council Member Boyd stated that assuming no street/drainage
connections were made, would the property function correctly
for ingress, egress and drainage considerations.
Robbins replied yes.
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December 19, 1989
Page 9
The following ordinance was considered:
NO. 89-185
AN ORDINANCE OF THE CITY OF DENTONv TEXASv PROVIDING
FOR A CHANGE FROM PLANNED DEVELOPMENT TO SINGLE FAMILY
(SF-7) ZONING DISTRICT CLASSIFICATION - AND USE
DESIGNATION FOR 22.914 ACRES OF LAND LOCATED EAST OF
AUDRA ESTATES SUBDIVISION, NORTHEAST OF MACK PLACE
SUBDIVISION AND NORTHWEST OF BELLAIRE .HEIGHTS~ AS MORE
PARTICULARLY DESCRIBED HEREIN; PROVIDING FOR A PENALTY
IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS
THEREOF; AND PROVIDING FOR AN EFFECTIVE DATE.
Hopkins motioned, McAdams seconded to adopt the ordinance. On
roll vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens
"aye." Motion carried unanimously.
Se
Consent Agenda
McAdams motioned, Gorton seconded to approve the Consent Agenda
as presented. Motion carried unanimously.
A. Bids and Purchase Orders:
1. Bid #1046 -Secretarial Workstations
2. Bid #1047 - Wooden Transmission Poles
3. Bid #1041 - Computer Facility Air Conditioner
4. Bid #1043 - Demolition and Clearing #14
B. Tax Refunds
Consider approval of a tax refund for
Talenfeld Real Estate & Investment.
6. 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:
City of Denton City Council Minutes
December 19, 1989
Page 10
31'9
NO. 89-186
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.
Gorton motioned, McAdams seconded to adopt the ordinance. On
roll vote, McAdams "aye," Alexander 'aye,' Hopkins "aye,'
Gorton 'aye,' Ayer 'aye," Boyd 'aye," and Mayor Stephens
"aye." Motion carried unanimously.
B. The Council considered adoption of an ordinance
accepting competitive bids and providing for the award of
contracts for public works or improvements.
The following ordinance was considered:
NO. 89-187
AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING-
FOR THE. AWARD OF CONTRACTS FOR PUBLIC WORKS OR
IMPROVEMENTS; PROVIDING FOR THE EXPENDITURE OF ~FUNDS
THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE.
McAdams motioned, Alexander seconded to adopt the ordinance.
On roll vote, McAdams "aye," Alexander "aye,' Hopkins 'aye,"
Gorton 'aye,' Ayer "aye," Boyd "aye," and Mayor Stephens
'aye." Motion carried unanimously.
Item 7.A. was considered.
7. Resolutions
A. The Council considered approval of a resolution
granting approval to the North Texas Higher Education
Authority, Inc. to issue student loan revenue bonds or
otherwise borrow money, use the proceeds of said bonds or other
evidences of borrowing and make certain findings in connection
therewith.
The following resolution was considered:
NO. R89-077
A RESOLUTION GRANTING APPROVAL TO THE NORTH TEXAS
HIGHER EDUCATION AUTHORITY, INC. TO ISSUE STUDENT LOAN
REVENUE BONDS OR OTHERWISE BORROW MONEY~ USE THE
PROCEEDS OF SAID BONDS OR OTHER EVIDENCES OF BORROWING
AND MAKE CERTAIN FINDINGS IN CONNECTION THEREWITH.
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City of Denton City Council Minutes
December 19, 1989
Page 11
Ayer motioned, McAdams seconded to approve the resolution. On
roll vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," Boyd "aye," and May~r Stephens
"aye." Motion carried unanimously.
The Council returned to the regular agenda order.
6. Ordinances
C. The Council considered adoption of an ordinance
providing for the taxation of property exempt under Article
VIII, Section l-j, Texas Constitution beginning with the 1990
tax year.
Lloyd Harrell, City Manager, presented an update on new
developments with regard to action taken by neighboring cities
and the options available to the Council. Fort Worth indicated
that they would not be taking any action either prior to
January first or April first and would allow the Freeport
Exemption to go into effect. Dallas would keep the taxation of
the Freeport products for the next budget year (1990-91) and-
then exempt those goods thereafter. Generally, the central
cities in the area appeared to be moving immediately towards
implementing the exemption while the suburban cities appeared
to be retaining the tax at least for the present. The
Metroplex Mayor's Association recommended to continue the tax
until more information could be obtained. It also stated a
need for a detailed cost benefit analysis performed by an
outside agency. There were three options available to the
Council. (1) Table the item and take no action. No action
prior to January 1, 1990 meant that there would be no taxation
of the goods for the next fiscal year and no action prior to
April 1, 1990, no taxation for any future years. Once the
decision was made, it was irreversible. There was no definite
dollar amount determined at the present. The Denton Central
Appraisal District was the only source, at this point, to be
able to give any kind of rough estimate. They indicated that
the implementation of the Freeport Amendment would mean the
exclusion of 80% of the business personal property tax in the
community. If that were correct, that would mean approximately
$420,000 from next year's budget that would be lost if no
action were taken and the amendment were allow to go into
effect. If the item were tabled, if the amendment went into
effect and if the loss were that amount of moneY, an
approximate two cent increase in the tax rate or a substantial
cut in City services would be necessary. (2) Pass the
proposed ordinance which would continue the tax starting the
next budget year and continuing in future years. Without any
further Council action, the tax would be in place and the items
would not ~ ~ump~. The decision would be reversible and the
Council could take action to exempt the items. The advantages
from that kind of action would be that because the decision was
City of Denton City Council Minutes
December 19, 1989
Page 12
321
reversible, the Council could wait up until the time the tax
rolls were certified to implement the exemption for the next
fiscal year. A decision could be made as late as September
that the Freeport items could be exempt. At that point in
time, the Council would know how much revenue would be lost.
If the Council had the dollar figures, a more realistic debate
could be held within the context of the budget as a major
budget issue, whether to implement the exemption at' that point
or not. Choices would then have to be made about increasing
the general tax rate to make up the difference or cut
services. (3) Amend the ordinance to implement the "Dallas
option" which would continue to tax the goods for the 1990-91
fiscal year but exempt thereafter.
Mayor Pro Tem Ayer asked that assuming the $420,000 figure was
correct and assuming the Council did approve the exemption and
did not raise taxes, would the City Manager give examples of
how large a cut would have to be taken from the budget.
City Manager Harrell replied that the cuts would have to be in
programs and services. For example, the Police Department
would have to eliminate the six new COPS positions, the three
narcotics officers, and five dispatchers authorized in the
current budget.
Mayor Pro Tem Ayer stated that he was not suggesting that one
large chunk be taken from one department but rather spread it
among departments. This was a demonstration on the magnitude
of what the dollar amount represented.
City Manager Harrell continued that a $420,000 cut in the
budget would represent about three-fourths of the City's total
street patching and overlay program. It would wipe out all of
the contributions made to other agencies which amounted to
approximately $166,000 and still leave approximately $250,000
worth of cuts to find. It would close the Senior Center,
Martin Luther King, Jr. Recreation Center and North Lakes
Recreation and still be about $60,000 short.
Mayor Pro Tem Ayer stated that there was no doubt that the
Council was committed to economic development. He felt that
many people who voted for the Freeport Amendment did not
realize what they were doing in terms of their own taxes.
There was a very positive campaign waged for the amendment and
none of the negative aspects had been advertised. It was a
good amendment. It provided cities and counties with still one
more option for promoting economic development. The amendment
did not enact a tax reduction, it simply provided cities with a
local option to do so. The Legislature recognized that cities
would need some time to adjust to the amendment because of the
manner in which it was written and the spacing of the actions
in order to implement it. The Council had the opportunity to
keep options open. There was not much information about the
impact on the amendment at this point. He felt it was prudent
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City of Denton City Council Minutes
December 19, 1989
Page 13
fiscal responsibility to keep options open. He :~.felt the
Council needed to take their time on this item, to gather
information, and study all of the facts. The Council had
responsibility to the entire City and there were a lot of
people in the City who might be affected adversely by the
amendment. It did not make good fiscal sense to close options
when to keep the options open would not damage anyone~
Council Member Gorton stated he felt there was a fourth
option. If no action were taken before January 1, 1990 but
taken before April 1, 1990, the goods could be taxed in 1991
and in all future years.
City Manager Harrell replied that that was correct. If no
action were taken at this meeting, the goods could not be taxed
for the 1990-91 fiscal year. April first was the next
deadline. If positive action were not taken by April 1, 1990
to continue the tax, then the goods could not be taxed from
then on.
Council Member Gorton stated that he was willing to yield to-
the business community on the issue for this brief period of
time. He challenged the business community to before April 1,
1990 com~ up with a plan of action to inform the citizens of
the due effects of not allowing the tax to continue. He would
yield to the wishes of the citizens as they voted in this brief
period of time. He was willing to yield one year's worth of
taxes for an educational process so the citizens could see the
effect of exempting these areas of taxation and what the true
impact would be on a local basis.
Council Member Hopkins stated she wanted to start with the
figures from the Appraisal District. She understood that they
did not know because they never separated it. But no one had
spoken to what might happen. The City might not necessarily
get $420,000. If it were $420,000 this past year, it might not
be that much next year. There had already been a cut in a
shift at Peterbilt. NO one had said what would happen to
Peterbilt, Tetrapack, and Andrew. If the economic downturn
continued and did not improve, the City would not see
$420,000. The City might not see $200,000. It could go the
other way just as well as it could go up. Yet the City was
saying to other companies not to come to Denton because the
City was not willing to take the risk. When the Denton
Independent School District and the County Commissioners
respected the voters decision, she did not feel it was her
place to override it. The voters were people who work at
Peterbilt, Tetrapack, Andrew and Boeing and they understood
about taxes. She did not feel it was going to be that big of a
shock to them. The citizens knew what they voted for and it
was obvious to most people who voted, that when a tax was
excluded that was previously collected, that it was picked up
by someone else. It was not a fair tax. If the Council voted
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December 19, 1989
Page 14
323
not to allow the exemption, the Council would be send.ing out a
negative message. NOt only to companies looking to relocate
but also to companies the City needed not to cut back or move
away from here. The Council could not bind a future Council to
the wishes of the present Council. She felt the Council should
vote to exempt now but if not, a positive statement, should be
made for the business community to say that the tax would be
kept for 1990-91 year only and exclude later. This was more
important t'han many other things being done and if some of
those had to be taken out of the budget next year, then so be
it. And if the taxes had to be raised two cents, the Council
would be following what 70% of the voters said they would be
willing to do.
Council Member Alexander stated that there were two good
arguments on each side. When the Council first put the item on
the agenda, he felt the Council would be working with the DISD
and the County Commissioners to study and review and keep
options open for a while. Things had changed since then with
the School Board granting the exemption. He was concerned
about waiting and not making a decision. He was concerned that
the benefit acquired from granting the exemption over the
long-term would have to be a benefit that could be made evident
now. He was inclined to suggest one of two options (1) table
the issue and let the tax exemption go into effect or (2) keep
the tax in place for 1990 and to make it clear that the tax
would not be in place following that date. The considerations
for economic development were out in the future. Companies
looking at Denton were thinking about locating and building
facilities here. Those facilities would be constructed and
ready in time to enjoy the exemption. That would give the City
a full year to make adjustments and to make plans to either
reduce services or increase taxes. He felt that the strongest
statement the Council could make would be to table the
ordinance and allow the exemption to go into effect.
Council Member McAdams stated that tax abatement or the
Freeport Exemption was not be the only thing businesses looked
at. At this moment, she did not see the best way to make up
the dollars. She did not feel that sent a negative message to
an industry looking at Denton. Businesses already in the City
would be experiencing a break in the tax due to the actions by
the DISD and the County. The Council could say that it had a
commitment to this but was asking for time to get the budget in
order. If a smaller amount of money was being talked about,
she would not hesitate. But it involved perhaps a significant
tax increase to people who already experienced an increase in
City, County and School taxes while reducing taxes on others.
She felt it would be a mistake to take it off this year but
hold options for next year. She felt it was necessary to hold
on to the option for'the future while studying the effects.
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City of Denton City Council Minutes
December 19, 1989
Page 15
Council Member Boyd felt it was ironic that the Council
struggled every year to give a greater tax exemption to
citizens over 65 but could give only $1,000 each year because
the budget couldn't take too large hit all at once. NOW the
Council would be asking for a considerably larger hit and also
a possible increase in taxes. With the Freeport exemption, the
tax structure in Denton may be more attractive to manufacturing
industries, but it also may be less attractive to other
industries. Other industries would not benefit from the
exemption and would have to increase taxes. It might be that
Denton would want to be a transportation hub or a manufacturing
center. It might also be that Denton would want to be in
banking or publishing or a number of other industries that
would not benefit from the exemption. This amendment would
mean restructure of the tax structure to benefit a narrow range
of industries.
Mayor Stephens felt that no one was in opposition to granting
the exemption but that the question was how and when. He
suggested that if the tax provision were continued, that the
management could look at possible reductions of programs in-
lieu of a tax increase to continue a suitable level of
service. He felt that the exemption should be granted as soon
as possible but not more than one to two years. This would
send a signal that the City was in favor of phasing out the tax
as quickly as possible without doing extreme level of damage to
the City's level of service and without putting an extra tax
burden on citizens and business/industry taxpayers.
Council Member McAdams stated the City had coming on-line two
additional fire stations which needed adequate staff and also
had already promised the community another community center
which would also need staff. The Senior Center was being
expanded. The City had an obligation to have those physical
facilities serve the public if the City was willing to spend
money on them. .That meant additional dollars. The next year's
budget did not just include the cost of the present year, it
already included an increase. The Council needed to think
about what it would say to the community if it could not
provide the basic things that it had already promised them.
The following ordinance was considered:
NO. 89-188
AN ORDINANCE PROVIDING FOR THE TAXATION OF PROPERTY
EXEMPT UNDER ARTICLE VIII, SECTION 1-jr TEXAS
CONSTITUTION BEGINNING WITH THE 1990 TAX YEAR; AND
DECLARING AN EFFECTIVE DATE.
City of Denton City Council Minutes
December 19, 1989
Page 16
Alexander motioned, Boyd seconded to amend the ordinance to
implement the "Dallas plan" which would continue tO tax the
goods for the 1990 budget but to announce that the Council
would implement the exemption in the 1991 budget.
Council then held a discussion regarding the wording for the
amendment.
A brief recess was taken in order to determine the exact legal
wording necessary for the amendment.
Following the recess, City Attorney Drayovitch suggested the
amendment be written in a new Section II as follows: "That the
Council hereby announces its intent that all of that property
described in the Texas Constitution, Article VIII, Section 1-j
shall be exempt from taxation beginning January 1, 1991".
Council Member Alexander stated that he was satisfied with that
wording for his motion of amendment.
On roll vote, McAdams "aye," Alexander "aye,"
Gorton "nay," Ayer "aye," Boyd "aye," and
"aye." Motion carried with a 6-1 vote.
Hopkins "ayet"
Mayor Stephens
Boyd motioned, Alexander seconded to instruct staff to prepare
an ordinance for the January 2, 1990 City Council agenda
exempting the tax beginning January 1, 1991. On roll vote,
McAdams "aye," Alexander "aye," Hopkins "aye," Gorton "aye,"
Ayer "aye," Boyd "aye," and Mayor Stephens "aye." Motion
carried unanimously.
D. The Council considered adoption of an ordinance
designating and establishing speed zones on Loop 288 from Audra
Lane to the 1-35E west frontage road; providing for a penalty
of a fine not exceeding two hundred dollars and providing a
severability clause.
Rick Svehla, Deputy City Manager, stated that this was a
request from the Highway Department to rezone the speed zones
on Loop 288 from I35 to approximately US 380 based on radar
studies done on the facility. The Citizens Traffic Safety
Support Commission recommended approval.
The following ordinance was considered:
NO.89-189
AN ORDINANCE DESIGNATING AND ESTABLISHING SPEED ZONES
ON LOOP 288 FROM AUDRA LANE TO THE 1-35E WEST FRONTAGE
ROAD; PROVIDING FOR A PENALTY OF A FINE NOT EXCEEDING
TWO HUNDRED DOLLARS ($200.00); PROVIDING A
SEVERABILITY CLAUSE; AND DECLARING AN EFFECTIVE DATE.
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City of Denton City Council Minutes
December 19, 1989
Page 17
Ayer motioned, Boyd seconded to adopt the ordinance.~ On roll
vote, McAdams "aye," Alexander "aye," Hopkins .aYe,. Gorton
"aye," Ayer "aye," Boyd "aye," and Mayor Stephens "aye."
Motion carried unanimously.
E. The Council considered adoption of an ordinance
amending Southview's Development Phasing Schedule3 (PD-132).
(The Planning and Zoning Commission recommended approval).
The following ordinance was considered:
NO. 89-190
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING
THE DEVELOPMENT SCHEDULE FOR PLANNED DEVELOPMENT
DISTRICT NO. 132 (SOUTHVIEW); AND PROVIDING FOR AN
EFFECTIVE DATE.
McAdams motioned, Hopkins seconded to adopt the ordinance. On
roll vote, McAdams 'aye," Alexander "aye,' Hopkins "aye,"
Gorton "aye," Ayer 'aye," Boyd "aye,' and Mayor Stephens-
'aye.' Motion carried unanimously.
F. The Council considered adoption of an ordinance
awarding a contract for the purchase of gas from Lone Star Gas
Company; and providing for the expenditure of funds therefore.
(The Public Utilities Board recommended approval).
Bob Nelson, Executive Director for Utilities, stated that the
next four ordinances dealt with gas contracts with Lone Star
Gas.
The following ordinance was considered:
NO. 89-191
AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF
GAS FROM LONE STAR GAS COMPANY; PROVIDING FOR THE
EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN
EFFECTIVE DATE.
McAdams motioned, Boyd seconded to adopt the ordinance. ~ On
roll vote, McAdams "aye," Alexander "aye," Hopkins "ayet"
Gorton "aye," Ayer "ayer" Boyd 'aye,' and Mayor Stephens
"aye." Motion carried unanimously.
G. The Council considered adoption of an ordinance
awarding a contract for the transportation of gas to Lone Star
Gas Company; and providing for the expenditure of funds
therefore. (The Public Utilities Board recommended approval).
City of Denton City Council Minutes
December 19, 1989
Page 18
The following ordinance was considered:
NO. 89-192
AN ORDINANCE AWARDING A CONTRACT FOR THE
TRANSPORTATION OF GAS TO LONE STAR GAS COMPANY;
PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFORE; AND
PROVIDING FOR AN EFFECTIVE DATE.
McAdams motioned, Gorton seconded to adopt the ordinance. On
roll vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens
"aye." Motion carried unanimously.
H. The Council considered adoption of an ordinance
authorizing the Mayor to execute a contract with Lone Star Gas
Company and the cities of Bryan, Greenville and Garland for the
transfer of gas; and providing expenditure of funds. (The
Public Utilities Board recommended approval).
The following ordinance was considered:
NO. 89-193
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A
CONTRACT WITH LONE STAR GAS COMPANY AND THE CITIES OF
BRYANt GREENVILLE AND GARLAND FOR THE TRANSFER OF
GAS; PROVIDING EXPENDITURE OF FUNDS; AND DECLARING
AN EFFECTIVE DATE.
McAdams motioned, Gorton seconded to adopt the' ordinance. On
roll vote, McAdams "ayet" Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye,' Boyd "aye," and Mayor Stephens
"aye.' Motion carried unanimously.
I. The Council considered adoption of an ordinance
awarding a contract for the purchase of spot gas from Enserch .
Gas Company; and providing for the expenditure of funds
therefore. (The Public Utilities Board recommended approval).
The following ordinance was considered:
NO. 89-194
AN ORDINANCE AWARDING A CONTRACT FOR THE PURCHASE OF
SPOT GAS FROM ENSERCH GAS COMPANY; PROVIDING FOR THE
EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN
EFFECTIVE DATE.
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City of Denton City Council Minutes
December 19, 1989
Page 19
McAdams motioned, Hopkins seconded to adopt the ordinance. On
roll vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," Boyd "aye," and May~r' Stephens
"aye." Motion carried unanimously.
J. The Council considered adoption of an. ordinance
of the City of Denton, Texas, approving payment of the City of
Denton's share of the annual administrative fee for
participation in the Upper Trinity Regional Water District; and
authorizing the expenditure of funds therefore..
The following ordinance was considered:
NO. 89-195
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING
PAYMENT OF THE CITY OF DENTON'S SHARE OF THE ANNUAL
ADMINISTRATIVE FEE FOR PARTICIPATION IN THE UPPER
TRINITY REGIONAL WATER DISTRICT; AUTHORIZING THE
EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN
EFFECTIVE DATE.
McAdams motioned, Ayer seconded to adopt the ordinance. On
roll vote, McAdams 'aye," Alexander 'aye," Hopkins ~aye,'
Gorton 'aye,' Ayer "aye," Boyd "aye," and Mayor Stephens
"aye." Motion carried unanimously.
7. Resolutions
A. Item 7. A. was considered earlier in the meeting.
B. The Council considered approval of a resolution
whereby the City of Denton approves the 1989-90 fiscal year
budget, in accordance with the provisions of Article 1432e
V.A.T.S., as amended, of the Denton County Emergency
Communications District.
The following resolution was considered:
NO. R89-078
A RESOLUTION WHEREBY THE CITY OF DENTON APPROVES THE
1989-90 FISCAL YEAR BUDGET, IN ACCORDANCE WITH THE
PROVISIONS OF ARTICLE 1432e V.A.T.$., AS AMENDED, OF
THE DENTON COUNTY EMERGENCY COMMUNICATION DISTRICT;
AND PROVIDING FOR AN EFFECTIVE DATE.
McAdams motioned, Hopkins seconded to approve the resolution.
On roll vote, McAdams "aye," Alexander 'aye,' Hopkins "aye,"
Gorton 'aye,' Aye~ "aye," Doyd "aye," and Mayor Stephens
'aye." Motion carried unanimously.
City of Denton City Council Minutes
December 19, 1989
Page 20
C. The Council considered approval of a resolution
recognizing 1990 as the centennial year of the Uniyersity of
North Texas.
Mayor Stephens stated that the resolution came as a request
from Chardean Newell and that part of the resolution had been
omitted. Mayor Stephens requested that the following be
included in the resolution in the next to last "Whereas": "and
graduate degrees by 1988, and also has developed into one of
five major research and teaching institutions of higher
learning in the State of Texas, and is now the fourth largest
in student enrollment".
The following resolution was considered:
NO. R89-079
A RESOLUTION RECOGNIZING 1990 AS THE CENTENNIAL YEAR
OF THE UNIVERSITY OF NORTH TEXAS.
Ayer motioned, Boyd seconded to approve the resolution with the-
additional wording as noted. On roll vote, McAdams "aye,"
Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye,"_ Boyd
"aye," and Mayor Stephens "aye." Motion carried unanimously.
D. The Council considered approval of a resolution
requesting DART to secure the option on the Union Pacific
right-of-way from Lewisville to Denton.
Jesus Nava, Assistant to the City Manager, stated that this
resolution would involve DART acquiring a long-term option for
the railroad right-of-way from Lewisville to Denton. In order
for DART to discuss the option 'with Union Pacific, DART
requested a resolution from both the City Council and the
Chamber of Commerce.
The following resolution was considered:
NO. 89-080
A RESOLUTION REQUESTING THAT THE DALLAS AREA RAPID
TRANSIT AUTHORITY (DART) CONSIDER THE PROTECTION OF
THE FORMER MKT RAIL LINE, CURRENTLY OWNED BY THE UNION
PACIFIC RAILROAD, FROM ITS EXISTING SERVICE AREA IN
CARROLLTON AND CONTINUING ON THROUGH TO THE CITY OF
DENTON; AND PROVIDING FOR AN EFFECTIVE DATE.
McAdams motioned, Boyd seconded to approve the resolution. On
roll vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens
"aye." Motion carried unanimously.
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City of Denton City Council Minutes
December 19, 1989
Page 21
8. The Council considered approval of a motion
authorizing the City Manager to execute an agreement with the
Texas Historical Commission for services in connection with the
Urban Main Street Program.
Jane Finley, Main Street Manager, reviewed the achievements of
the Main Street Program during the past year.
Hopkins motioned, Gorton seconded to approve the request. On
roll vote, McAdams "aye," Alexander "aye," Hopkins "aye,"
Gorton "aye," Ayer "aye," Boyd "aye," and Mayor Stephens
"aye." Motion carried unanimously.
Miscellaneous matters from the City Manager.
City Manager Harrell had no items for Council.
10. There was no official action on Executive Session
items from the Work Session.
11. New Business
The following items of New Business were suggested by COuncil
Members for future agendas:
A. Mayor Pro Tem Ayer suggested the public be made
aware of the report on privatization.
12. The Council did not meet in Executive Session during
the Regular Session.
With no further business, the meeting was adjourned at 10:00
p.m.
N'I PEp WALTERS
Y SECRETARY
CITY OF DENTONt TEXAS
3222C