Minutes August 28, 1990CITY OF DENTON CITY COUNCIL MINUTES
AUGUST 28, 1990
The Council convened into the Work Session at 5:15 p.m. in the
Civil Defense Room.
PRESENT:
Mayor Castleberry: Mayor Pro Tem Boyd; Council
Members Ayer, Gorton, and Trent.
ABSENT:
Council Members Alexander and Hopkins
1. The Council held a discussion and gave staff
appropriate direction regarding budget issues for the 1990/91
budget year.
Council Member Hopkins joined the meeting.
LLoyd Harrell, City Manager, stated that the format for the
meeting would be a discussion of the major budget issues and
other items requested by the Council.
General Fund Maior Issues
(1) General Fund - over the last few years, the Council had
followed a fiscal policy of maintaining a General Fund
undesignated and unreserved balance within a range of 8% to 10%
of total expenditures. In balancing this year's budget,
$575,000 of the unreserved balance was proposed to be
implemented into the budget. This ~would reduce the projected
unreserved balance to 9.7% of totaI expenditures. It was hoped
that this would be a one-time reduction in the reserve. The
9.7% would be a worse case scenario.
Council Member Alexander joined the meeting.
Council Member Trent asked for some examples that a portion of
the balance would be used for for one-time capital expenditures.
City Manager Harrell replied major street work or to fund
recreational centers which were now proposed to be postponed.
Council Member Trent stated that it appeared to be a good move
to take the $575,000 out of the balance because it was getting
too high.
Harrell replied that the Council had been traditionally
comfortable with an 8-10% reserve. If it would get much more
than that, the taxpayers might question why the Council was
levying the amount of property tax that was being levied. A
certain amount was needed to protect for unforeseen emergencies
and disasters which might come into the City.
Council Member Gorton asked if some of the reserve money could
be used to off-set health benefits rather than pay raises. He
asked how that would impact the reserve fund.
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Page 2
Consensus of the Council was to hold the fund at the 9.7% and
utilize the $575,000 to balance the 1990-91 budget.
(2) Revenues - The property tax alternatives were: (1)
$.6483 was the amount included in the proposed budget, would
finance the proposed budget and have enough money to finance as
submitted with $367,000 extra: (2) $.6183 was based on the
1989-90 tax rate and would require an additional $225,000 to
balance the budget: (3) $.6298 was the figure from the budget
as submitted with salary freezes; (4) $.6553 was back to the
effective tax rate with the same money as last year.
Council Member Gorton stated that he could consider holding the
effective rates to maintain what was had last year. The
Council needed to look to the future and not just one year at a
time.
Sales Tax - Harrell stated that the staff recommendation was to
keep the sales tax at a 2% estimate and continue to monitor the
revenue source for any potential fluctuations.
Other revenues - Harrell stated that the budget was based on
about $100o000 worth of fees and charges that would be
increased because it had been some time since that happened.
Three methods were used to determine the increase in fees which
included a review of the 1983 Grfffith Revenue Study which
analyzed fees and actual costs of providing service; taking
those fee amounts and applying an annual inflation factor and
comparing the amounts to the North Central Texas Council of
Governments and other metroplex cities; and contacting each
department director for input and recommendations.
Approximately one-half of the amount was made up by increasing
the ambulance service fee.
Mayor Pro Tem Boyd cautioned that a fee might be raised too
high so that there would be a decline in the use of the
service. Was the City making the service too high and running
the risk of not receiving payment for the service.
Harrell replied that the percentage of ambulance pays was about
the same because of the nature of the business.
(3) New Fire Station - The proposed budget had $150,000 to go
towards the reserve fund to increase the amount to $615,000.
That money would be used to cover the estimated $480,000 yearly
operation and maintenance costs associated with the second
station.
Consensus was to follow the staff's recommendation to fund
$150,000 to the reserve fund.
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August 28, 1990
Page 3
(4) New Positions - Harrell stated that in the 1990-91 budget,
there were no new positions recommended for the General Fund.
Some positions and programs had been eliminated: animal control
supervisor with a net savings of $20,200, a plumbing inspector
with a net savings of $39,500, a maintenance worker at the
Airport with a net savings of $11,000 and an intern and
associated supplies/equipment for the Quest operation for a net
savings of $11,000. In addition, it was proposed to hold
several positions open: park planner for one-half a year with a
net savings of $20,000, a recreation specialist and a Civic
Center supervisor for three-quarters of a year with a net
savings of $18,000 per position. All of those affected
positions net the City approximately $137,000 which was
incorporated into the budget.
Council Member Trent felt that the net savings on the Airport
worker was not $11,000 but more like $6,000 due to the fact
that the City would have to contract to cut the grass.
Harrell replied that the gross figure was much higher,
approximately $22,000, and approximately $11,000 was plugged in
for contract mowing work. Thus the net savings would be
$11.ooo.
A discussion was held by the Council rega~ing the maintenance
worker at the Airport and the other positions affected by the
proposed budget.
Consensus was to look at all of the positions at a later date
after further budget discussion.
(5) Salary Adiustment - Harrell presented the following
alternatives for possible salary adjustments. The adjustments
would allow for a modest salary increase for employees from a
high of 3.1% to a low of 1.3%:
#la - would provide a 2% market adjustment effective
October 1, 1990 for all employees with
$25/month/employee for insurance costs effective
January 1, 1991. Average yearly salary adjustment per
employee would be 2.08% for 100% of the employees.
That would cost the General Fund approximately
$466,000.
9lb - would provide a 2% market adjustment but would
be delayed from October 1, 1990 to January 1, 1991.
The cost if the adjustment were effective January 1,
1991 would be $380,000 with a 1.58% average yearly
salary adjustment per employee.
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The advantage of package ~1 would be that it would
help with recruitment, all employees in the
organization would receive the same benefit and it
would cover all of the health insurance increases that
would be experienced. The disadvantages were that the
market adjustment was not based on merit, the
employees would recognize the $25 per month health
insurance suppIement this year and would be well
received but that that would probably be soon
forgotten, and it froze merit increases for City
employees with possiSle litigation for Civil Service
employees.
%2a - this alternative restored the merit and Civil
Service step program and would be effective October 1,
1990. A $25/month health insurance supplement would
be effective January 1, 1991. 62% of the employees
would be eligible for a salary adjustment with an
average salary adjustment per employee of 2.58%. Cost
of this alternative would be $387,000.
%2b - in this alternative, merit and Civil Service
step programs would be included with an effective date
of January 1, 1991 plus the $25/month health
supplement effective January 1, 1991. Again the
percent of employees eligible to receive salary
adjustments would be 62% with an average yearly salary
adjustment per employee of 1.33%. The cost of this
alternative would be $316,000. The advantages would
be that it was close to the current system and took
away the litigation threat. The disadvantages were
that many employees would not get an increase other
than the $25 health insurance supplement, employees
would soon loose track of the supplement, it did not
help with recruitment, and the delay of three months
would build in costs for the next budget year.
%3a - this alternative, effective October 1, 1990,
would provide a merit increase for those eligible and
would be coupled with a one-time payment for those at
the top-of-the-range based on an evaluation and
performance for up to a 2% increase. 100% of the
employees would be eligible for an increase with an
average yearly salary ad3ustment Of 2.25% per
employee. The cost would be $393,602.
#3b - would provide the same benefits as #3a with an
effective date of January 1, 1991. The cost would be
$327,980 with an average yearly salary adjustment per
employee of 1.6%.
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August 28, 1990
Page 5
139
The advantages of ~3 were that all increases would be
based on merit except for Civil Service. the one time
payment for people at the top-of-the-range would not
be built into the base budget, the merit system would
remain, and all employees would be eligible for some
type of increase. Disadvantages would be in the
recruitment area and the fact that it was a new
concept and would have to be well explained to the
employees.
Council Member Alexander asked for the number of employees who
were at the top-of-the-range for one, two, three, and five
years.
Council Member Gorton asked how the one-time payment would
affect the net take home pay. Would that be a benefit or not.
~4 - would offer merit increases and annual market
adjustments by pay ranges. The lower pay families
(Service/Maintenance, Clerical/Office Support,
Technical/Para-professional and Seasonal) would
receive a 3% annual market increase. The higher paid
areas (Professional. Management/Supervision, Fire,
Police and Executives) would receive a 2% increase.
The cost would be $466,000 with an average yearly
salary adjustment of 3.13% per employee. The
advantages were that it was the most similar to the
current pay program, all employees would get some type
of increase, and helped with recruitment.
Disadvantages were that non-merit increases were built
in, in order to afford the option, all was keyed to a
January 1, 1991 implementation date, and costs would
be built in for the next year.
Council Member Ayer asked for a comparison of tax rates to fund
the increases.
Harrell replied that if there were no further cuts in the
budget, the current levy when proposed was $.6483. If that
rate were used, $367,000 would be available for salary
increases. The effective rate of $.6553 would provide $505,000.
(6) Benefits Adjustments - Harrell stated that there was no
choice in relation to the Fire Pension contribution. This was
the last year of the phase-in.
(7) Other Agency Contributions
Human Services - Harrell stated that the current budget, as
submitted to Council, had the human services funded at the
amount of $101,520. If the contribution were held even, the
amount would be $115,600. If that were done, $14,000 of
additional revenue or additional expenditure cuts would have to
be done. A 10% cut in funding would require $104,320 and an
additional $3,000 would be needed. Staff recommendation was a
10% decrease.
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City of Denton City Council Minutes
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Page 6
Transportation - this item showed a 10% cut at $41,400. The
proposed budget indicated the $41,400 figure.
(8) Tax Exemptions For Persons Over 65 - Staff was
recommending an increase of the exemption by $1,000 which would
place the total exemption at $19,000. Cost to the City would
be $14,627.
(9) Improvements Program - The same recommendation was
presented as before in postponing the building of a new
library, two recreational centers and a law enforcement center
until the economy improved.
(10) Street Improvements - If an additional $.02 tax increase
were implemented, $370,000 would be generated to allow an
additional 7 miles of street to be done. If additional cuts
were made in the budget, this would be an area to redirect any
additional money.
(11) Budget Reductions - The following were proposed budget
reductions:
(a) eliminate the funding to youth athletic officials
- this would net the City $15,500. The Parks Board
recommended either to fund the officials or to
eliminate the administrative fee for persons
participating in youth athletics.
(b) Potential Court Judgments for Flow Hospital - the
$200,000 was eliminated.
(c) Auto Accident Liability - $50,000 in budgeted
savings would be realized.
(d) City Hall Roof Repair - This was the one area in
which a Certificate of Obligation was needed for the
next year.
Other Fund Ma~or Issues
Proposed rate increases were:
Electric - no rate increase
Water - 9.97%
Wastewater - 9.46%
Refuse - 6%
Sanitation - 6% increase
Harrell continued that the rest of the back-up consisted of
questions from the Council expressed at earlier meetings.
City of Denton City Council Minutes
August 28, 1990
Page 7
141
Harrell stated that the Mayor had requested he spend some time
on the issue of Training/Travel. He felt that there was some
very real inherit value in training. If one looked at the
entire budget, only 4/lOths of 1% of the budget was spent on
training/schools/seminars. The General Fund operation total
amount for training/schools/seminars in actual dollars was down
approximately 3% over last year and adjusted for' inflation,
decreased the figure to 8%. Most of the increases were in only
three different line items. One in the Fire Department where
training would be for 15 paramedics, the second in
Engineering/Data Processing for GIS, and the third for training
for a new librarian. If those three were taken out, the actual
increase would be 8% and adjusted for inflation would be 13%.
Discussion was held by the Council concerning travel expenses,
room expenses and conferences.
The Council convened into the Special Called meeting at 7:00
p.m. in the Council Chambers.
PRESENT:
Mayor Castleberry;
Members Alexander,
Trent.
ABSENT: None
Mayor Pro Tem Boyd; Council
Ayer, Gorton, Hopkins and
1. The Council considered a m0~ion to approve the 1990/91
hotel/motel tax recipient budgets as presented and submitted to
the City Council.
John McGrane, Executive Director for Finance, stated that
according to state law, each of the recipients of the
hotel/motel tax had to submit to Council for approval their
budgets. Each of the organizations had done that and were
reviewed. The City Attorney felt that one motion would cover
all the budgets which included the Denton Convention and
Visitors Bureau, the Greater Denton Arts Council, the Greater
Denton Arts Council Building Fund, the Denton County Historical
Museum, the Denton County Historical Foundation and the North
Texas State Fair Association.
Hopkins motioned, Gorton seconded to approve the 1990-91
hotel/motel tax recipient budgets. On roll vote, Trent "aye,"
Alexander "aye," Hopkins "aye," Gorton "aye," Ayer "aye," Boyd
"aye," and Mayor Castleberry "aye." Motion carried unanimously.
2. The Council received a report and gave
appropriate direction concerning alternatives for the
Luther King, Jr. Outreach Library Program.
staff
Martin
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City of Denton City Council Minutes
August 28, 1990
Page 8
Lloyd Harrell, City Manager, stated that per Council direction,
staff went back and looked at the Outreach Program which was
schedule to be discontinued, to see what kind of options the
City would have to continue the program. Several options were
presented from continuing the existing program in its present
form with current hours to a program which would involve
purchasing a book mobile for the community. For each option,
advantages and disadvantages had been discussed. Staff was
recommending Option V in which the Literacy Center would
provide children with recreational reading materials in the
form of periodicals, popular paperbacks and hardback books.
Included in that option were (1) volunteer staff would be
provided from NICE, MLK Advisory Board Committee Members, NAACP
Youth Group, members of the Community with RSVP coordinating
and scheduling the group; (2) the Parks and Recreation Board
had approved the use of the two meeting rooms to the left of
the entrance of the Center. The Literacy Center would be open
10 hours per week with procedures for use of the building
provided to RSVP: (3) library cards would be issued and
materials provided by the Library and added to by members of
the community. Magazine subscriptions would be paid for by
local fraternities, sororities, and members of the local
community. These subscriptions would be arranged by the
Collins Youth Council; (4) Friends of the Emily Fowler Public
Library would match up to $500 contribute~_by other community
groups to purchase a wide assortment of paperback books; (5)
procedures would be developed for the material collection by
the Library staff. Training of the RSVP volunteers would also
be provided by the Library staff; (6) the project would be
evaluated after six months and the status would be reported to
the Council and (7) SPAN would provide transportation for any
child who wanted to come to the main library. This proposal
would provide Southeast Denton a Literacy Center in the
neighborhood, fully maintained and operated by the residents
with local donations. There would be no impact on the 1990-91
budget. However, with the normal use of the collection, there
would be an estimated replacement cost of materials of
approximately $2,000.00 in the next year's budget. The Center
should be opened by September 10, 1990.
Council Member Gorton stated that the minutes of the Library
Board indicated that the volunteers would be managed by the MLK
Advisory Board and assumed that the MLK Advisory Board reported
to the Parks Board which reported to the Council. What was the
line of responsibility.
City Manager Harrell replied that the Library Board would have
no direct responsibility in the day-to-day operations. RSVP
would coordinate the daily supervision of the program.
City of Denton City Council.Minutes
August 28, 1990
Page 9
Council Member Gorton asked who would be responsible for the
ultimate answer with a problem.
Joella Orr, Librarian, replied the ultimate answer would be to
the Library Board.
Council Member Ayer-stated that SPAN was not mentioned in the
agreement and as they did play an important role, they should
be included in the agreement.
Hopkins motioned, Alexander seconded to accept Option V. On
roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Gorton
"aye," Ayer "aye," Boyd "aye," and Mayor Castleberry "aye."
Motion carried unanimously.
3. The Council convened into Executive Session to discuss
legal matters, real estate, and personnel/board appointments
(considered an appointment to the Public Utilities Board). No
official action was taken.
With no further business, the meeting was adjourned.
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CITY OF DENTON
3297C
BOB CASTLEBEERY, MAYO~
C TY OF D .,TON. T .XA
/