Minutes August 27, 1991296
CITY OF DENTON CITY COUNCIL MINUTES
AUGUST 27, 1991
The Council convened into the Work Session at 5:15 p.m. in the
Civil Defense Room.
PRESENT: Mayor Castleberry; Mayor Pro Tem Hopkins; Council
Members Alexander, Chew, Perry, Smith and Trent.
ABSENT: None
1 The Council convened into Executive Session to discuss
legal matters (held a discussion regarding Flow Hospital), real
estate, and personnel/board appointments.
2. The Council received an update and held a discussion
regarding a final report on the Mere.er Study.
Tom Klinck, Director of Personnel, outlined the background and
approach of the Mercer study which was an intense employee
compensation study which commenced in the fiscal year 88/89 and
continued through fiscal year 90/91. The final report would
outline Mereer's recommendation for pay plan implementation in
the 91/92 fiscal year with full implementation for non civil
service employees in 92/93. The guidelines the City presented
Mercer were to develop a revised and comprehensive salary
management program, revise the pay for performance process,
simplify and standardize the current program, and ensure the
city%s pay practices were competitive with the current market
and equitable throughout the City organization.
Klinck stated the study was performed in four phases. Phase I
included internal equity issues or the relationship of current
positions across nine different salary structures. Phase II
required a market analysis of the positions and salary
structure design. Phase III developed a pay for performance
program to allow employees to move through the salary structure
system, and Phase IV outlined recommendations for
implementation for the new compensation program.
A definition of strategy for compensation was a key issue
identified by managers and supervisors. Most organizations
compensate for the basic or fundamental parts of doing the job
and management and supervisory skills. The City of Denton
identified technical skills necessary to perform certain ~obs
was an important criteria in terms of the overall strategy.
The recommendation to Council was to compensate an employee
based on value of the position, value of the position's
contribution to the organization and performance and have a
competitive salary structure tied to the composite job market.
The salary management study addressed classification,
compensation, pay for performance and procedural components.
Survey. results and market analysis were used to define lob
equity within the organization. Klinck outlined procedures
used to set the salary structure.
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August 27, 1991
Page 2
Tom Riley, of William M. Mercer, Inc., discussed the findings
of the job survey. After jobs were broken down into
components, each was compared and contrasted matching specific
duties and responsibilities. The analysis was done on a 47%
job match. In total, the overall pay position of city jobs was
below the competitive market with 12% of the jobs significantly
below the job market and two jobs significantly above. Job
evaluation data and competitive market analysis were combined
to develop a citywide salary structure. Riley explained the
salary structure outlined in the final Mercer report.
Riley outlined the recommendation for a salary plan that would
close the gap between jobs and attempt to bring more employees
to mid range which would occur over the years. Because of
limited dollars, recommendations to close the gap on a priority
basis would first address jobs below 80% of market, civil
service lobs and then all other city positions.
Riley stated the recommended pay plan in the non civil service
area would have 13 pay grades with salary ranges based on the
market comparison and 12% increases between grades. Civil
Service positions had limitations imposed by law. Civil
Service regulations required payment of the same base rate to
all employees in each level which eliminated step systems or
open ended salary ranges. Civil Service also required
seniority advancement rates. The recommended police and fire
rates were based on the regulations and outlined in the final
report.
Council Member Trent questioned the longevity value for the
base rate and if that were an entry level salary.
Riley responded that there was a recruit or entry level rate.
Further discussion was held regarding the Civil Service pay
structure and the Mercer recommendation and the recruit level
pay information.
Council Member Alexander stated that in the Civil Service
structure that recruitment does not occur for entry at mid
level. Consequently, people reaching mid level in five years
are the current recruits. Therefore, the city must be
competitive in the recruit market in order to acquire the best
and brightest in the region.
Riley stated the seasonal pay plan had been included in the
market survey. The seasonal pay plan would not be recommended
for implementation until fiscal year 92/93.
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August 27, 1991
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Riley outlined the Executive structure developed from the
competitive market data. The Mercer recommendation was for
salary ranges which top out at a control point and stop.
Executives would not receive increases beyond the control point
but would be eligible for awards from the long term business
strategy incentive program. Further explanation of the
Executive plan continued.
Tom Klinck stated that the study provided an improved salary
structure and a pay for performance program which would allow
reward for outstanding performance with greater flexibility and
more efficiency.
Pay for performance was recommended for a Phase II
implementation in the 92/93 fiscal year to allow time to
adequately train managers and supervisors on utilization of the
Performance Rating Incentive document. The PRI objectives were
outlined and explained.
Council Member Alexander stated that funds set aside for one
time lump sum increases would need to be determined at budget
time, but all money set aside would not necessarily be
implemented.
City Manager Harrell emphasized that the pay for performance
concept would not be an automatic increase for employees as the
current step plan had been. The pay for performance concept
would allow the city to reward top and outstanding performers
and differences in levels of contribution to the organization.
Council Member Alexander stated that the program required
resources and management commitment along with extensive
training of supervisors plus communication to employees
concerning change of philosophy, change in supervision and
workplace environment.
Harrell stated that funding limitations which delayed full
implementation of the Study would allow a year of training in
preparation for full pay for performance concept.
Further discussion regarding the rating of employees in the pay
for performance system and the training of supervisors to set
objectives and standards for employees continued. Klinck also
outlined the budgetary procedures for the PRI dollars.
Council Member Alexander questioned if there were any way under
the law the city could structure a pay for performance plan
into the Civil Service structure.
Klinck stated that case law does not indicate any possibility.
City of Denton City Council Minutes
August 27, 1991
Page 4
Klinck reported that job descriptions had all ready been
provided to managers and supervisors to be upgraded, and work
was all ready completed on titles and re-titles. The appeal
process recommended by Mercer was in place. The remaining
items to be addressed were rewriting of policies and procedures
to be brought before the Council for approval with an
implementation date.
Betty Wilkins, Personnel Specialist, stated that the main
objective of supervisor training was to work with supervisors
and managers to set real clear goals and objectives for
employees. She outlined the training program and guidelines
which would be utilized to make sure the performance
expectations were clear.
Klinck concluded by stating that the Mercer Study
recommendation for fiscal year 91/92 for the non civil service
employers was to implement the pay structure of 13 grades tied
to the competitive rate and that 91/92 would be a transition
year. The study also recommended bringing the approximately
12% non civil service employees to the new minimum of the
assigned salary grade and all other employees would be awarded
a 3% market adjustment effective either January 1, 1992, or
October 1, 1991. In the 92/93 budget year, staff would bring
forth cost alternatives for implementation of the pay for
performance plan.
Harrell clarified that there was a cost of approximately
$143,000 to bring the 12% of employees to minimum which would
affect approximately 80 people. If the employee would not
receive a 3% increase by being brought to minimum, the
difference would be awarded to get them to 3%. Civil Service
employees were required by law to be rewarded, their step
increases due before January 1. Therefore, staff recommended
non civil service employees also be awarded their merit step
increases due prior to January 1, assuming a January 1
implementation date. If the award were greater than 3% that
would be the increase for the year. If less than 3%, the
difference to bring the employee to 3% would be granted.
Klinck stated that 128 employees' review dates would fall
between October 1 and January 1. The Civil Service
recommendation was the two pay structures outlined to Council
with a 3% market adjustment.
Council Member Smith asked what amount of money had been
included in the proposed budget.
Klinck stated in the proposed budget the non civil service
portion which would bring 12% of employees to minimum and
allowed a 3% market adjustment with a proposed January 1
implementation date plus Civil Service adjustments would total
$507,000. An October 1 implementation would total $676,000.
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August 27, 1991
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The Council convened into the Special Call Session at 7:00 p.m.
in the Council' Chambers.
Pledge of Allegiance
The Council and members of the audience recited the Pledge of
Allegiance.
Item fi3 was considered.
3. The Council held a public hearing regarding the
adoption of the proposed 1991-92 City of Denton Annual Program
of Services.
Lloyd Harrell, City Manager, stated that this had been a
difficult budget because of some very difficult financial
constraints which impacted not only the community in general
but also the City government. Some of those constraints set
the tone for the budget and dictated some of the actions in
preparing the budget. On the revenue side, this continued to
be a difficult period for the City. That resulted in three
primary effects of that difficulty. The first was the
implementation of the Freeport Amendment. About a year and a
half ago, the City Council voted to exempt business personal
property that was in transit within the State of Texas. That
action taken by the Council resulted in a decrease of tax
revenue to the City government of approximately $360,000. That
represented approximately $.02 on the tax rate. That was a tax
benefit and a tax break given by the Council in hopes that long
range, it would promote economic development but at least short
range, it caused the City a fairly severe financial problem.
Secondly, not only did the City have the loss of the Freeport
but as a community, the revenue source for the City continued
to lag. This year that was growing at a 2% rate. The
projected budget continued the projected growth rate at a
level. On the expenditure side, the two main areas which
impacted the budget was the goal of trying to bring Fire
Station Six on line. The other major impact was the new pay
and classification program for City employees. He
characterized the budget as a belt tightening budget. The
increase in the proposed budget both in the General Fund and
all funds combined, the rate of budgetary increase over last
year's budget, was at about 3%. That was responsible in the
hard economic time the City was in. Excluding the Fire
Department that was talked about for bringing Station Six on
line, there was a net decrease in the General Fund of three
employees. Last year there had been a net decrease of 3.5
employees. The proposed tax rate was either $.6851 per $100
valuation Or $.6951 per $100 valuation deDendin~ on several
options available to the Council. Either of those two rates
would be under the effective tax rate of $.7038 which was the
rate a governmental unit required to bring in simply the amount
City of Denton City Council Minutes
August 27, 1991
Page 6
301
of revenue that was brought in the previous year. Either
proposed rate was actually a decrease of tax revenues. The
budget continued the current programs. There were no drastic
cuts in levels of City services. There were some small steps
in improving services such as improving ambulance service,
increasing the tax exemption granted to individuals over 65
years of age and doubled the demolition effort for substandard
programs.
The Mayor opened the public hearing.
Sally Leihgeber, representing the Denton Tennis Association,
stated that she wanted the address the proposal made by Council
Member Trent to have an overall recovery of 60% by the Parks
and Recreation Department. Denton operated at approximately
38% which was comparable or better than other surrounding
areas. Irving was at 12%, Carrollton was at 26% and Grand
Prairie was at 31%. As a group, the Association was disturbed
by the fact that Council Member Trent was targeting tennis by
wanting it to come up to 100%. Why was it different from the
other special interest programs. The program now operated at
approximately 50%. Council Member Trent wanted that leisure
activity to be totally self-sufficient. One way to accomplish
that was to double the present fees which were -already
compatible to those in the Metroplex. If that happened, a
majority of the users would be lost. Classes that currently
cost $36 would be $72. Tournament entries would go from $11 to
$22, league from $21 to $42. She was sure that most users
could not adjust to that kind of an increase. The second
suggestion was to privatize. Council Member Trent compared
Denton to Plano when he made that suggestion. Plano was twice
the size of Denton, had three and a half times the tax base,
and four and a half times the tax revenue. She did not feel
that comparisons were equal. In the late 1970's bonds were
vote on by the people to build the facilities for the people of
Denton, not to establish a private money-making venture.
Council Member Trent spoke as if he wanted only the immediate
users to assume the cost as though they were the only ones who
received the benefits. The Association felt that the tennis
program, along with other leisure programs, provided benefits
~or not only the immediate users but the community at large
with positive aspects of the programs. The youth were busy
doing positive things rather than negative. Senior citizens
were benefiting from a healthier way of life thereby keeping
health costs down. The Parks and Recreation profile was
studied by industries looking to relocate. These were benefits
for everyone. She wanted to correct three statements which
appeared in an article in the Denton Record-Chronicle. One
statement claimed that there were three working pros. There
were actually only two at the tennis facility. Another
statement indicated that there were no lessons or leagues
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City of Denton City Council Minutes
August 27, 1991
Page 7
offered in the evenings or weekends. In fact, they were
offered in the evenings. The weekends were used for
tournaments, rentals and court reservations which produced
revenue. The article also indicated that the Denton Tennis
Association paid $20 per year for the use of the courts on
Saturday mornings. This was not correct. Most of the
participants had annual passes but there was no fee charged for
those hours due to the fact that the Association was
co-sponsored by the City. Over the years the Denton Tennis
Association had contributed far more than that. The current
support would not exist if the facility went private.
Ed Bonk stated that he was a member of the Denton Senior
Advisory Board. He felt that there were two major differences
in the comparison used between Denton and Plano. One was that
the median family income from Plano was 50% more than in
Denton. The other was that percentage of people over 65 was
two and a fourth times as great in Denton than in Plano. The
Senior Center provided a place for volunteers to help other
seniors in the City. That service could not be measured in
dollars and cents. He urged the Council to not look to the
Senior Center for more financial aid.
Billy Jack Normile spoke in support of the tennis program. He
felt that the tennis center supported the City's youth and
children. The youth in Denton received good instruction at the
Center and asked the Council to reconsider any ideas for making
the Center self-supporting.
Travis Ratcliff stated that many families benefited from the
programs in the Parks and Recreation Center, particularly the
tennis program. His family had utilized the tennis program and
felt that the program provided a superb leisure service to the
average tax paying public. He felt the staff at the Center was
extremely capable. He felt the Center was a public service
which was truly economical to the taxpayer, splashed with
professional intellect, personal enthusiasm and overwhelming
respect for their charges.
Wayne Hudgens stated that he had been involved with the tennis
center and other sports programs in the City for 10 years. His
children were involved in the tennis programs. He felt that he
probably would not have taken them to a private center either
in or out of the City. The Center provided excellent
opportunities for youth in ways such as developing friendships
and maturity, in addition to tennis. He felt the programs were
developing future leaders in Denton.
City of Denton City Council Minutes
August 27, 1991
Page 8
Carl Williams expressed a concern regarding increased fees. He
was involved in sports programs and for programs at the Martin
Luther King Center. He felt that sometimes political
philosophy became penny wise and dollar foolish. He asked the
Council not to raise fees. Children would not be able to pay
fees if they were raised. Small things could not be measured
in dollars and cents.
George Holden spoke regarding the Senior Center. The Senior
Center offered for people who had retired and who were on a
fixed income, an inexpensive way to keep their lives creative.
There were many hours of volunteer service at the Senior Center
which benefited many seniors. If the costs were raised, the
usage would decrease seriously.
Dorothy Damico, Chair-Human Services Committee, asked that the
Council support the recommendations made by the Human Services
Committee. The Committee had the responsibility to keep the
Council informed of the human service needs in the community
and to make recommendations to the Council on funding for those
needs. She stated that she was lobbying for two groups of
people. One group was the people who used services and one
group who served on Boards and Commissions and volunteers in
the City. She asked the Council to follow the recommendations
by the Human Services Committee.
Jane Malone, President of the Denton Soccer Association, stated
a concern in regards to making the sports programs
self-supporting. The Parks Department supplied the fields for
play but the program did not cost the City any other dollars.
If they used the City buildings after hours, they paid rent.
She received many calls regarding sports activities for youth
from people moving into the area. She asked the Council to not
raise the activity fees as it would limit those who would be
able to participate.
Jesse Coffey stated that according to the Annual Program of
Services, the public hearing was scheduled for the following
week. He wondered why it was scheduled for August 27, the same
night as the DISD public hearing on their budget. On page
51-52 of the budget recommendations, staff recommended a 3%
increase for pay raises. On page 55, there was a request for
an increase in planning and inspection fees. On page 56, there
was a request for an increase in parks and recreation fees.
Increased taxes were requested on page 67, a 10% increase in
the water rate and a 15% increase in the sewer rate. According
to the City's figures prepared by the Personnel Department of
the City of Denton, the number of employees had increased 27%
since 1982. The salaries had increased $9 million in the last
five years, from $19,679,000 to $28,281,000 - a 44% increase.
Another increase in salaries was proposed in the 1991 budget.
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His employees had their last increase in June of 1989. , There
was a proposal for an increase in building and inspection
fees. The Denton Record-Chronicle reported that there were
only 78 building permits issued through July. He compared
those figures to those of Flower Mound (over 400), Southlake
(400), Grapevine (200), Keller (over 200), Lewisville (over
200). What was wrong with Denton. He felt staff was fond of
having committees study issues, like increases in salaries. He
suggested a committee on why people were not moving to Denton.
Page 95 of the budget showed that in 1989-90 the budget showed
a projected income of $83,855,000 in the utility system. In
1989-90 the revenue exceeded the expenditures by $4 million.
What happened to the $4 million as it was not reflected in the
next budget. He asked the Council to "deep six" the budget and
go back and not increase fees and taxes. There was over $50
million in reserve, $4 million could not even be accounted for.
Mo Joiner stated that he understood Council Member Trent wanted
the sports programs to be 100% self-sustaining. For years, the
programs in the Denton Sports Association, football, two
baseball programs, soccer and girls softball, had been 100%
self-funded. They were in a budget crunch the same as the City
and the programs were being threatened by the $5 fee required
by the City. If the Council could not find fat to cut or
places to raise revenue, he would be willing to pay more taxes.
Wayne Allen stated that he had a proposal which might ease the
City's problems in funding some of the sports programs. He
suggested a sports authority for adult and youth programs.
This would be an authority and would be the bottom line. It
would be made up of one member of each of the sports, groups so
that all would be represented. The City would lease the sports
authority the sports facilities for 20 years for $1.00 as it
did with the Arts Council. The City would maintain all
facilities and would supply the Authority a building for
offices, storage, meeting and conference rooms. The Authority
would take the burden off the City to run and maintain all the
sports activities, In order to make the program work, it would
need to receive 1% of the hotel tax. He wanted to pursue the
idea further with the Council if it desired.
COuncil Member Chew asked if the Authority would be the final
authority and the Council would not have any input.
Allen replied no that the Director of Parks would be an
ex-officio member. The contract would have to be tied back to
the City Council. The Authority would relieve the City of
financial burden and political burden of running the sports
program.
City of Denton City Council Minutes
August 27, 1991
Page 10
Council Member Trent felt the idea had good merit and proposed
that staff meet with Allen to investigate the proposal.
Alice Pockrus stated that she used the Senior Center as did a
great many other people. She felt that those individuals would
be harmed if the fees were raised.
Edward Coomes, member of the Library Advisory Board, thanked
the Council for the current funding level for the Library.
Linnie McAdams stated that she would like to see an expansion
of library services in order to reach those who currently could
not use libraries. She also felt that the idea that everyone
who used a service should pay for it, was good in theory but
was not practicable. If fees continued to increase, poorer
families would not be able to participate. This might lead to
criminal activities. The citizens voted for the centers
because they thought they were valuable additions to the
neighborhoods. She knew that the Council had a given amount of
money for the budget but asked them not to cheat on the
children.
Joe Dodd stated he knew how the budget procedure worked and
that anything said at the public hearing would not change
anything. He would like to pay more taxes and particularly
sales taxes. But as the Council was trying to keep taxes down,
he would suggest other areas where the Council might raise
money. In the spirit of charging a toll for I35, perhaps the
City could charge an exit fee for people to get into Denton.
There could be a student discount but a commercial surcharge so
that anyone who wanted to spend money in Denton would be weeded
out. In the spirit of the sprinklers that the City required as
it cut down on the need for a fire department, perhaps the City
could require that apartment units over 50 and strip centers
have their own security. That would mean less policemen. In
the idea of user 'fees, it would help keep the riffraff and
people who probably should not live in Denton as they did not
make enough money. He suggested charging for the Fire
Department and Policemen. That was a valuable service.
Perhaps the City could have another bond election and after
having received permission to use the money, the City could
divert it to some other causes like the two recreation center
programs. He suggested a blue ribbon committee to think of
services that could be broken out, like the storm water, call
it something else and send the citizens a separate bill for it.
Bob Powell stated that as a precinct chairman, his older
constituents were upset about chicken fried steak. They asked
why taxes were going up but they had to go to Lewisville to an
Owens Restaurant for chicken fried steak. They wanted to know
why the restaurant was not allowed to build in Denton. He
replied that it was apparently the Council's idea that they did
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August 27, 1991
Page 11
not want any more restaurant growth in Denton. This was a
retired couple on a fixed income who did not have a lot of
money to spend and did not have a lot of money for taxes. They
were upset with the Council because they were going to raise
taxes. They were upset with the School District because they
were going to raise taxes and the County also. They did not
understand why they could not spend their money in Denton on a
simple product like a chicken fried steak.
Jean Coda stated that she was against the idea of having a fee
charged for the seniors to use the Senior Center and that it
would be a hardship for the people. She felt there were other
ways to raise money for the budget.
Ken Gold, Denton Fire Fighters Association, thanked the staff
for the budget proposal for Station Six. He felt that Option
04 was the best available. He felt that hiring nine fire
fighters, the method chosen in Option 04, would have saved
money in overtime as opposed to the method of hiring eight. As
a City employee, he felt the history of pay raises had been
conservative and that the raises did not even meet inflation.
George Gilkeson stated that he would like to purchase an
airplane for himself and for his grandchild but he could, not
justify buying the airplane because he could not afford it. He
suggested to the Council that if the City could not' afford it,
don't do it.
The Mayor closed the public hearing.
Item 02 was considered.
2. The Council considered a motion to approve the 1991-92
hotel/motel tax recipient budgets as presented and submitted to
the City Council.
City Manager Harrell stated that state law required the Council
to review and formally approve the budgets of the various
organizations which received hotel/motel tax funds.
Council Member Trent questioned the
funds. Specifically would the City
regarding the allocation of funds.
correct allocation of
stand up to an audit
City Attorney Drayovitch stated that she believed Council
Member Trent was referring to the money currently being paid to
the Arts Council for renovation of the old steam plant.
Council Member Trent replied correct and under the wording of
the State statue, he requested she reference how that money was
to be allocated.
City of Denton City Council Minutes
August 27, 1991
Page 12
City Attorney Drayovitch replied that the State statue allowed
a city to expend hotel occupancy tax monies for historical
restoration and preservation projects that would encourage
touristic convention delegates to visit preserved historic
sites or museums, in or at the immediate vicinity of convention
center facilities or located elsewhere in the municipality or
even in the vicinity of the municipality. In 1978-79 the
Council determined that the renovation of the old steam plant
was a project that they wanted to dedicate funds towards.
Since that time, money had been paid to the Arts Council for
that project. That money could only be spent to restore that
historic site. In answer to the question could it withstand an
audit, she understood that none of the money the City had given
for that purpose had been spent. No violation of the statue
had occurred.
Council Member Trent asked how long the Arts Council would
continue to collect that money without spending it before
something had to be done. Either return the money to the
taxpayer or use it to restore the building.
City 'Attorney Drayovitch replied that the Arts Council held the
money under a fiduciary obligation and could not be spent for
any other purpose. The money could not be spent for purposes
of the arts as there was a statutory limit of 15% of the monies
collected for hotel tax could be spent for the arts. In her
opinion, the money would have to be given back to the City and
that the City could only spend it for one of the purposes
authorized by the statute.
City Manager Harrell stated that in the current budget, only
six months of funding was provided to the Arts Council for the
steam plant. In March of the following year, the quarterly
allocations for that purpose would cease.
Council Member Perry stated that he believed that in the
beginning, the percentage of hotel/motel occupancy tax that
could be distributed to the Arts Council, by law, was greater
than it currently was. Even under those condition, that money
was still in their reserve.
Council Member Alexander felt that good progress had been made
with the contracts with the tax recipients. He felt that the
reports received this year regarding the budgets of the
organizations were the best the Council had received.
Alexander motioned, Chew seconded to approve the 1991-92
hotel/motel tax recipient budgets as presented and submitted to
Council.. On roll vote, Trent "aye," Alexander "aye," Hopkins
"aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
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August 27, 1991
Page 13
Following the conclusion of the public hearing, the City
Council reconvened in the Civil Defense Room.
1. The Council held a discussion and gave staff direction
regarding budget issues for the 1991-92 fiscal year.
Lloyd Harrell, City Manager stated that they were now at the
point where Council needed to start making budget decisions at
least tentatively. Items discussed at the current meeting
could be deferred to the following meeting or a tentative
decision could be made with the understanding that the decision
could be changed at a future meeting prior to formal adoption.
There were two meetings scheduled for Council to work through
all of the various issues. In addition to the current meeting,
the meeting on September 10 would be a budget session only.
Decisions needed to be made by September 10 for formal budget
approval at the September 17th meeting. The balancing of the
budget started with a minus $310,000 which represented the new
figures from the Appraisal District. There was an implication
that this was a very tight year for the economy and the City
should tighten the budget even more. He cautioned the Council
that as the administrative staff looked at the budget, next
year was not going to be any better than the current year.
Reason included the assessed value on property was set as of
January 1. There had not been any major building activity so
that there probably would not be a large increase in the
assessed value. The other item was that staff recognized that
this was a very tough economic year and did whatever it could
to hold down the tax rate. The proposed budget included
revenue sources which would not be available next year such as
the Flow reserve, the insurance fund and a return on investment
from the hydro units. The only way the tax rate was held below
the effective rate was due to those sources which would not be
available next year.
Harrell reviewed the tax rate and the Truth in Taxation State
law. The current rate was $.6551. The proposed rate was
either $.6851 or $.6951. The effective rate was $.7038. That
meant because the assessed rate had gone down, because of
Freeport and the general 4% decline in assessed value, for the
City to get the same amount of tax revenue that was received
from $.6551, the tax would have to be $.7038. The tax rate
times the assessed value equaled the revenue. If the assessed
value went up the tax rate went down. If the assessed value
went down, the tax rate went up. State law held that the City
could go 3% above the effective rate,without a public hearing,
publication, etc. The rollback rate was the tax rate more than
an 8% increase or $.7244. Over that would subject the rate to
a referendum and would roll the rate back to $.7244. He stated
that anything less than $,7038 was a tax decrease.
City of Denton City Council Minutes
August 27, 1991
Page 14
Harrell continued with the budget discussion items listed under
separate cover' and presented in the agenda back-up.
(i)
meeting.
meeting.
Major budget items - would be discussed later in the
Tax roll adjustments - would be discussed later in the
(3) Water tower - this item was painting the water tower
one color as opposed to multicolor which would save $30,000.
The Public Utilities Board recommended not to paint the tower
this year and set aside $100,000 this year and $100,000 or
$70,000 next year and do the project next year.
Council Member Alexander stated that this would have no impact
on the General Fund.
Harrell replied that it would have no impact and was factored
into the Public Utilities Board recommendation.
(4) Remove vacant positions from the Utilities budget -
there were 23 vacant positions when starting the Electric
budget in April. Ten of those positions had been filled since
the submission of the budget. Thirteen positions remained
vacant. It was the position of the Director of Utilities to
hold 10 or 11 positions vacant. Ten vacant positions, if
removed, would mean $300,000 from the Electric Department
budget. The Public Utilities Board recommendation was to leave
the vacant positions in the budget and monitor throughout the
year. Late next year there might be the possibility of an
electric rate decrease if the positions had not been filled.
Council Member Perry asked if the positions were left funded
and as each month passed that they were not filled, that the
money be returned to the budget.
Harrell replied that that was the current procedure. As the
months went by and the position was not filled, that money was
not available to spend on something else.
Mayor Pro Hopkins asked why that did not affect the utility
rate.
Harrell replied that $300°000 decrease would allow a small
additional decrease on rates.
Bob Nelson, EXecutive Director for Utilities, stated that it
would be five hundredths of a cent per kilowatt reduction. The
problem was that it was not on the fuel adjustment side. It was
on the fixed cost side of rates.
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Mayor Pro Tem Hopkins stated that part .of the money was for
growth projects. Why could that not be taken out of there.
Why did the budget have to be inflated. She felt that the
Electric budget in general was inflated by $300,000 and then
the rates were adjusted to budget that inflation.
Mayor Castleberry felt that positions which were not going to
be filled should not be funded.
(5) No rate increase in Utilities - The Public Utilities
Board was recommending a 3% decrease in the electric rate.
With regards to the water budget, the original recommendation
was an 11.77% increase in the water rates. After that budget
had been filed, Council decided not to go with a joint
ownership arrangement with the Upper Trinity Regional Water
District. When that decision was made, it caused another
$400,000 problem in the budget as the budget had been based on
previous Council's direction that that would be an acceptable
arrangement. That Upper Trinity decision meant that to balance
the budget a 15.46% rate increase was needed. The Public
Utilities Board made the recommendation that items 1-6 be left
out of the water budget in Exhibit I. Those items included
shifting economic development plan lines from current revenue
to bond funds, eliminate a proposed supervisory position at the
Water Treatment Plant, delaying the painting of the water
.tower, postponing the demolition of two wells, reduce
miscellaneous waterline replacement and reduce replacement of
waterlines in the street program. If that were done, the rate
increase would be at a 10% level. There were two other
options, not recommended by the Public Utilities Board, which
the Council could consider. There was a $5 million outstanding
loan the Electric Department made to the Water Department to
cover past losses. Philosophically each of those funds should
stand alone. The budget had $500,000 to start repaying that
loan. If the Council wanted to delay $250,000, the rate
increase would be 7.8%. If the Council wanted to delay the
full $500,000, the rate would be 5.59%.
Mayor Pro Tem Hopkins asked if Council could add numbers back
in if it wanted to and keep at that rate of increase.
Harrell replied yes.
Council Member Alexander stated that he was not in favor of not
beginning repayment of the loan. In regards to the Utility
employees, he felt the Council had to rely on the executives to
tell them how many employees were needed to provide electric
utility service in a safe, effective manner.
Council Member Perry stated that he would like Council to look
at all. options regarding the Upper Trinity Regional Water
District instead of closing off the whole process. The Upper
Trinity was in an early stage of development and the Council
needed to preserve options with an open mind.
City of Denton City Council Minutes
August 27, 1991
Page 16
Harrell continued that the wastewater rate increase was
proposed to be 15%. The Public Utilities Board made a policy
recommendation that the way the City billed for sewerage usage
be changed to try and make it more fair. Currently the policy
was to take three winter months and average. The proposed
change was to take four winter months and eliminate the high
month. That would cost $194,000 on the revenue side. The
Public Utilities Board found additional cuts in the sewer
budget to be able to keep the rate at 15% and still accommodate
the $194,000 decrease. The rate could be dropped to 11.5%
increase but the same average billing would be needed. Solid
waste was proposing no increase except for at the landfill for
outside users.
(6) Salary adjustments - would the adjustments
effective October 1, 1991 or January 1, 1992.
be
(7) High tech requirements for police and fire - John Cook
and Mike Jez had stated that their number one capital
improvement priority was a computer aided dispatch system
which, unfortunately, was extremely expensive.
(8) Library computerization - the number one priority in
this area was the automation of the card catalog which would
cost approximately $311,000.
(9) Budget reserve level - new figures as of 10 months
indicated that if the reserve were lowered to 10%, $166,000
would be available. If the reserve were lowered to 9%,
$449,611 would be available and if lowered to 8%, $732,353
would be available. Harrell cautioned that the Council should
not rely too heavily on the fund balance, it would be difficult
for next year as that money would not be available. Another
caution was where to find money for unexpected or expected
items such as the FAA grant which the City had to match
$t00,000.
Mayor Pro Tem Hopkins stated that it also affected the City's
bond rating for future bond sales.
Council Member Trent asked if there was a break point on the
bond ratings.
John McGrane, Executive Director for Finance, stated that there
was no hard, fast rule but usually in the 8-10% range.
Reserves would be between one and a half months to two months
for expenditures. The bond agencies did not like to see a city
using the fund balance on a regular basis.
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(10) Reductions in growth related areas - over the last
three years in the Building Inspections area, there were two
positions dropped which represented a decrease in 20% of the
employees in that department. In the Planning Department, 1.9
employees had been dropped which represented a 16% net drop in
that department and in the Engineering Department two positions
were dropped which was a total of four positions over the last
three years. That represented a 15% reduction.
(11) Temporary hiring - Harrell stated that the hiring of
temporaries were a good buy as the City was not responsible for
benefits and the cost to the City was lower than if a full-time
person were hired. An in-house temporary service had been
started in the Word Processing Department.
(12) Overtime - 55% of all the overtime pay was located in
the Police and Fire Departments in the General Fund. Those
were mandated costs with minimum manning schedules.
Council Member Trent questioned the overtime in the Parks and
Recreation Department.
Steve Brinkman, Director for Parks and Recreation, stated that
much of that overtime was due to evening work on ball fields
and Saturday trash crews and ball field maintenance.
(13) Ten month balance - that item was included in the
discussion with the reserve level.
(14) Travel and seminar budget policy - the Council
adopted travel policy was included for back-up and Harrell
suggested that following budget discussion, the policy be
discussed at at work' session.
(15) Recreation programs (self-supporting philosophy) - a
question had been raised to see if the recreation programs
could be 60% self-supporting. That position differed from
Council philosophy which was adopted two years ago. That
philosophy detailed items the Council wanted to be 100%
self-supporting, items to be paid by the General Fund and items
which were special interest which would be split. The first
area investigated was was it possible to do an overall across
the board fee increase to obtain the 60% level. Analysis was
that it would raise fees so high that the City would lose
participants and would be self-defeating. Such an increase
would nearly double fees to obtain the 60%. Other areas looked
at included were there places where fees were not charged that
other cities were charging and was that a possibility. One
possibility was a facility user charge fee which would give the
City approximately $63,000. This would involve a user fee at
the rate of $12 per child per year and $24 per adult at all
City of Denton City Council Minutes
August 27, 1991
Page 18
recreation centers. Another possibility was to increase the
administrative fee on programmed activities. Those types of
revenue options would give the City approximately $116,000.
Expenditure reductions were also looked at which would not
seriously impact programs. Those reductions would provide
$33,000. A target number was $350,000 which represented the
60%. A theraputic recreation program was offered which was
subsidized by the General Fund at $41,000. This program could
be eliminated which would bring the total to $191,000. That
was the best estimate for possible fee increase which would not
drive away participants and some possible expenditure
reductions. If the Council wanted to do more than that, then
the Council needed to look at some of the facilities offered
and eliminate facility offerings.
Council Member Perry stated that he did not hear any public
comment at the public hearing which would support the raising
of fees. He felt that in some cases, it might be better to cut
fees such as in the swimming program. There may have already
been children who were not able to use programs and may want to
make the programs more open which would increase usage.
Council Member Alexander stated that his son participated in
the swimming lessons this summer and that there were few other
participants in the program. He felt the reason might have
been the cost of the program and felt that the City might
generate more revenue if some fees were reduced.
Council Member Perry stated that the Library was a City
facility which citizens could use for free and the usage
reflected that.
Council Member Smith stated that if Council deviated from
current Council policy to raise fees and not provide the
recreational and park services currently offered, that would
require a policy change on the part of the Council. She also
questioned the extensive work Parks and Recreation did on the
responses to questions. The amount of manhours and time and
paper that was spent, that the Council did not mandate to do
that.
City Manager Harrell replied that that was a problem which
needed to be addressed.
Council Member Smith felt that that issue should be addressed
at the earliest opportunity.
Council Members Chew and Alexander agreed.
Mayor Pro Tem Hopkins felt that some of those issues would best
be addressed after the budget.
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Council Member Chew felt that Council needed to discuss a
policy of giving direction to staff. He had a problem with one
person directing staff to prepare information that other
Council Members might not interested in.
Mayor Pro Tem Hopkins felt that another aspect would be that if
one Council Member was going to ask staff to prepare
information which would require a lot of work, there might need
to be a majority of the Council who agreed with that request.
(16) Tennis program (free enterprise) - the current program
was being subsidized by $49,000 which was coming from tax money
going in to support the program which cost approximately
$100,000. There were three options to raise the $49,000 in
order to make the program self-supporting. One was to raise
fees. Staff did not feel that was practicable as the current
fees were currently competitive. Another possibility was to
privatize the operation which would mean that the City would
not longer be involved in the program, put the facility up for
bid and have an individual run the facility under a contract
with the City. An example had been used that the City of Plano
had successfully run a program which was privatized. Staff had
concerns as to whether that kind of program would make sense
for Denton due to the difference in demographics between Denton
and Plano and the fact that the Plano facility was much more
extensive than Denton's. If the Council wanted to seriously
investigate the possibility, staff could prepare the
specifications for bids, etc. The last option was that if the
Council did not want to subsidize the tennis program, then the
City should cancel the program.
Council Member Trent asked if anyone had investigated the Plano
program.
Betty McKean, Executive Director for Municipal Services and
Economic Development, stated that she had her staff visit the
facility last week. They did a square footage check, visited
with staff, visited with their Finance Department. They also
did a similar visit to a center in Dallas. She felt
feasibility would involve the kind of amenities and facilities
as was at the City of Plano and the way the bond program
financed the quality of the operation.
Council Member Trent felt that Plano did not start out
immediately as they were today. That they grew into the
current program. That was the vision he had for Denton.
Council Member Perry indicated that if that idea were to be
pursued further, it needed to be done a~ a majority of the
Council.
City of Denton City Council Minutes
August 27, 1991
Page 20
Mayor Pro Tem Hopkins stated that it was a definite change in
philosophy including bond issues and what the citizens were
involved in. Denton was different than Plano.
Council Member Alexander felt that the City was not helping
citizens appreciate all the things the City was doing for them
such as the improvements at Evers Park. He felt citizens might
not understand that that facility was funded by bond money. He
felt there needed to be strategies developed to help citizens
understand what they were getting for their money.
(17) Revenue vs. expenditure budget summary - a question
had been raised that there was a substantial excess of revenue
over expenditures for total budget. Most of the explanation
for that was related to the TMPA rate rebate which the City was
hoping to receive. If the rebate materialized, another rate
adjustment might be possible on the electric side.
(18) Long range planning regarding water, etc. - a memo was
included in the agenda back-up regarding this issue.
(19) Budget implications for Upper Trinity River - this was
a $400,000 decision which would be dealt more at the next
meeting.
(20) Building improvements-maintenance items - these items
were dealt with in the major issues report. In that report, it
was proposed that those improvements be done through
certificates of obligation. This was suggested as the length
of time on the bonds would be shorter than the bond issues put
out to the voters for approval.
Council then debated the Major Budget Issues Report.
(1) General Fund Balance - Typically there was an 8-10%
reserve level. The budget was proposing to reduce the reserve
level by $550,000 to help balance the budget. Another
possibility was to reduce the fund to a 10% level which would
supply another $166,000 for the budget.
Council Member Alexander stated that he would like to see the
level be around 10% but not. go below that level.
Consensus of the Council was to lower the fund balance to the
10% level which would add $66,848 to the budget and $100,000 to
be used for the Airport matching grant.
Council Member Alexander suggested a statement be included in
the budget document that it was the Council's policy to hold
the fund balance level at 10%.
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(2) Fire Station 06 - three options were originally
presented. A fourth option was later presented which would
hire nine fire fighters starting June 1992. The station would
be opened December 12, 1992 and when opened, Station One would
close.
Hopkins motioned, Chew seconded to proceed with option ~4. On
roll vote, Trent "aye," Alexander "aye," Hopkins "aye," Smith
"aye," Chew "aye," Perry "aye," and Mayor Castleberry "aye."
Motion carried unanimously.
(3) Ambulance placements at fire stations - the
recommendation in the budget was to upgrade all of the reserve
ambulances to front line ambulances and to purchase one
additional ambulance for the fleet.
Alexander motioned, Perry seconded to approve the
recommendation. On roll vote, Trent "aye," Alexander "aye,"
Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
(4) Demolition of substandard structures - the
recommendation in the budget was to allocate an additional
$15,000 for the program which would supplement $15,000 from the
CDBG funds.
City Manager Harrell reminded Council that there were more
restrictions associated with the use of the CDBG funds and if a
particular structure did not qualify, the City would not be
able to tear it down.
Perry motioned, Chew seconded to not approve the extra $15,000
from the General Fund and only use CDBG funds. On roll vote,
Trent "nay," Alexander "aye," Hopkins "aye," Smith "aye," Chew
"aye," Perry "aye," and Mayor Castleberry "aye." Motion
carried with a 6-1 vote.
(5) Pay plan implementation - to implement the pay plan
for January 1992 would require $143,000 in the budget. To
implement the plan in October 1992 would require $47,940 in the
budget.
Mayor Castleberry asked if those employees receiving large
increases could receive them in tiers instead of a lump sum.
City Manager Harrell stated that the Mayor had asked if some
type of arrangement could be made whereby tiers were set up for
increases for this year. Very few of the employees would be
affected but a statement may be made if that were done. If the
increase cut-off were at $4,000 12 employees would be
affected. If the figure went down to $3,000-$3,500 a few more
were affected. It would be approximately $17,000 worth of
savings at the $4000 level.
City of Denton City Council Minutes
August 27, 1991
Page 22
Chew motioned, Alexander seconded to implement alternative ~1
which would be to phase in the recommendations and only fund an
amount necessary to bring all the positions up the the minimum
rate, effective January 1, 1992.
Council further discussed the issue with the possibility of
deferring a decision until the next meeting.
Chew withdrew his motion and Alexander withdrew his second.
City Manager Harrell stated that if the cut-off were at $3,000,
$17,000 would be saved; at $3500, $11,959 would be saved; and
at $4,000, $8,288 would be saved. There was not a lot of money
saved by doing tier raises.
(6) Salary adjustments - the budget recommendation was to
give a 3% salary adjustment effective no later than January 1,
1992. The budget indicated that if an employee received an
increase to bring his salary to the minimum which was more than
3%, that would be the total raise. If an employee received a
raise to minimum but it was not a 3% raise, he would receive
the extra to bring it to 3%. If an employee had a merit review
date between October 1 and January 1 and received a merit
review which exceeded 3%, he would not receive any other
adjustment. Any employee not in any of those categories, Would
receive a 3% increase.
Mayor Castleberry asked about employees at the top of the range.
City Manager Harrell replied that the way the plan was proposed
was that this year would be a transition year. The new pay
plan and the pay for performance system would not happen until
the following year. The proposed plan would allow those
individuals who were over the grade to still receive their 3%
increase this year. Next year they would not receive an
increase until their salary fell within the Dob grade.
Council Member Perry stated that he was ready to vote on both
item ~5 and on item %6.
Perry motioned, Chew seconded to implement the plans as
proposed in the budget as of January 1, 1992. On roll vote,
Trent "nay," Alexander "aye," Hopkins "aye," Smith "aye," Chew
"aye," Perry "aye," and Mayor Castleberry "aye." Motion
carried with a 6-1 vote.
(7) Benefits adjustments - this item was deferred to a
later discussion.
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August 27, 1991
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(8) Revenues
discussion.
Property tax - this item was deferred to a later
Bo
discussion.
Sales tax - this item was deferred to a later
C. Other Revenues
Planning and Inspections fees - this was a
recommendation for a plan review fee.
Alexander motioned, Chew seconded to implement the
recommendations of the budget proposal. On roll vote, Trent
"nay," Alexander "aye," Hopkins "aye," Smith "nay," Chew "aye,"
Perry "aye," and Mayor Castleberry "aye." Motion carried with
a 5-2 vote.
Council Member Trent indicated that he felt the Council was
sending a bad signal to those trying to locate a business in
Denton.
Municipal Court fees - this was a recommendation
for increased fines for parking tickets.
Chew motioned, Alexander seconded to implement the budget
recommendations. On roll vote, Trent "aye," Alexander "aye,"
Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
Parks and Recreation fees - this was a
recommendation for an increase in the swimming pool admission
fee.
Perry motioned, Chew seconded to not increase the fee to $1.25
and leave it at $1.00. On roll vote, Trent "nay," Alexander
"aye," Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and
Mayor Castleberry "nay." Motion carried with a 5-2 vote.
(9) Positions - the recommendation was to eliminate the
positions as indicated in the proposed budget.
Hopkins motioned, Trent seconded to implement the budget
proposal, on roll vote, Trent "aye," Alexander "aye," Hopkins
"aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
(10) Other agency contributions
City of Denton City Council Minutes
August 27. 1991
Page 24
A. Human Services - the recommendation was to keep
the funding at the same level of $115,600 and to not fund
health related agencies which would be AiDenton and the
Prenatal Clinic.
Hopkins motioned, Trent seconded to accept the budget
recommendation including the health related issues. On roll
vote, Trent "aye," Alexander "aye," Hopkins "aye," Smith "aye,"
Chew "aye," Perry "aye," and Mayor Castleberry "aye." Motion
carried unanimously.
Council Member Perry stated that the Prenatal Clinic did much
more than the dollars allocated. Once the Council was clear of
the Flow issue, he would like the Council to reevaluate the
policy on health related issues.
Council Member Alexander stated that he would like to see a
certain amount of dollars designated for human services and
then rely on the Human Services Committee recommendation for
the allocation of those dollars.
B. Transportation - the budget recommendation was to
keep the current level of funding and to not add $16,000
requested by SPAN.
Council Member Chew left the meeting.
Council Member Trent motioned to implement the
recommendation. Motion died for a lack of a second.
budget
City Manager Harrell stated that $10,000 was needed to restore
non-employment related needs for Handi-Hop. The $6,000 was for
Senior and Public transportation. The $6,000 amount had not
been researched as well as the $10,000 for needs.
Hopkins motioned, Alexander seconded to fund an additional
$10,000 for Handi-Hop and deny the $6,000 for senior and Public
transportation. On roll vote, Trent "nay," Alexander "aye,"
Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "nay." Motion carried with a 4-2 vote.
Council Member Chew returned to the meeting.
(11) Tax exemptions for persons over 65 - 'the budget
recommendation was to increase the exemption by another $1,000.
Trent motioned, Perry seconded to implement the budget
recommendation. On roll vote, Trent "aye," Alexander "aye,"
Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
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Page 25
(12) Split tax payments - budget recommendation was to
eliminate the split tax payment option.
Trent motioned, Chew seconded to implement the budget
recommendation. On roll vote, Trent "aye," Alexander "aye,"
Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
(13) Street Improvements - budget recommendation was to
maintain the current budget allocation and to investigate
calling a street bond election by January 1, 1992.
Hopkins motioned, Perry seconded to implement the budget
recommendation. On roll vote, Trent "aye," Alexander "aye,"
Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
(14) Building Improvements
allocate 1/4 of $.01 tax
Certificates on Obligation.
- budget recommendation was to
increase for debt service on
Smith motioned, Chew seconded to implement the budget
recommendation. On roll vote, Trent "aye," Alexander "aye,"
Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
Council Member Alexander stated that he would like to see a
reevaluation of the issues later if possible. He would like to
do a larger amount if possible.
(15) Take home vehicle program - budget recommendation was
to continue the individual assigned vehicle program.
Chew motioned,
recommendation.
Smith seconded to implement the budget
Council Member Trent asked if the City Attorney had reviewed
the memo prepared by Deputy City Manager Svehla and what was
her opinion regarding the City's liability.
City Attorney Drayovitch stated that the liability was a risk
and whether the risk was worth taking was not her position to
decide.
Council Member Trent asked if the issue needed to be deferred
to the following week.
Council Member Chew stated that there had been much research
done on the issue and he was ready to vote.
City of Denton City Council Minutes
August 27, 1991
Page 26
On roll vote, Trent "nay," Alexander "aye," Hopkins "aye,"
Smith "aye," Chew "aye," Perry "aye," and Mayor Castleberry
"aye." Motion carried with a 6-1 vote.
Mayor Castleberry asked that staff continue to study the
liability issue.
(16) Recreation program funding - no decision was necessary
on this item. It was for discussion purposes only.
(17) Internal Auditor - no decision was necessary on this
item as there was no budget implications. The Finance
Department would reorganize and provide for an internal auditor
function.
Mayor Castleberry suggested a vote on the matter.
Hopkins motioned, Trent seconded to proceed as suggested by
staff. On roll vote, Trent "aye," Alexander "aye," Hopkins
"aye," Smith "aye," Chew "aye," Perry "nay," and Mayor
Castleberry "aye." Motion carried with a 6-1 vote.
City Manager Harrell suggested deferring the Major Issues
Section dealing with utilities until the following meeting.
Council then considered the issues listed in the budget
discussion items.
(1)
(2)
Major budget issues - completed.
Tax roll adjustments
1. Additional roll supplement increases
Alexander motioned, Hopkins seconded to implement staff
recommendation. On roll vote, Trent "aye," Alexander "aye,."
Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
2. Health insurance adjustments
smith motioned, Hopkins seconded to implement staff
recommendation. On roll vote, Trent "aye," Alexander "aye,"
Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
3. $.01 ad valorem tax increase - this item was
deferred to a later meeting.
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August 27, 1991
Page 27
4. Sales tax increase - options included $80,000
which was a larger base but due to a lower recent check, staff
was suggesting placing the amount around $30-40,000.
Alexander motioned, Smith seconded to place the amount at
$40,000. On roll vote, Trent "aye," Alexander "aye," Hopkins
"aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
budget.
Flow Hospital - use $22,000 of that fund for the
Perry motioned, Chew seconded to implement staff
recommendation. On roll vote, Trent "aye," Alexander "aye,"
Hopkins "aye," Smith "aye," Chew "aye," Perry "aye," and Mayor
Castleberry "aye." Motion carried unanimously.
6. Contingency fund - this item was deferred to a
later meeting.
(3) Water Tower - this item was deferred to a later
meeting.
. (4) Vacant positions - this item was deferred to a later
meeting.
(5) No rate increase in utilities - this item was deferred
to a later meeting.
(6) Salary adjustments effective October 1, 1991 - this
item was deferred to a later meeting.
(7) High tech requirements for police and fire departments
- Council felt this item could not be considered at this time
due to budget constraints.
(8) Library computerization - Council felt this item could
not be considered at this time due to budget constraints.
(9) Budget reserve level - this item had been decided
earlier.
(10) Reductions in growth related areas - no decision was
required. This item was for information purposes only.
(11) Hiring of temporaries - no decision was required.
This item was for information purposes only.
(12) . Overtime - no decision was required. This item was
for information purposes only. -
City of Denton City Council Minutes
August 27, 1991
Page 28
(13) Ten month balance - no decision was required.
item was for information purposes only.
This
(14) Travel and seminar budgets (policy) - no decision was
required. This item was for information purposes only with a
suggestion to bring the item back for a work session discussion
if Council desired.
(15) Recreation program - current policy would continue.
(16) Tennis program - current policy would continue.
(17) Revenue vs. Expenditure budget summary - Council
decided to footnote the budget regarding the TMPA figure.
(18) Long range plans regarding water, etc. - no decision
was required. This item was for information purposes only.
(19) Budget implications for the Upper Trinity - no
decision was required. This item was for information purposes
only.
(20) Building improvements/maintenance -
Alexander proposed one-half cent be used
proposed one-quarter cent.
Council Member
instead of the
Council Member Chew agreed.
City Manager Harrell stated that if no other changes were made,
the tax rate would then increase by a quarter of a cent to
$.6876. Another option would be to change the sales tax rate
and pick up the dollars there.
Consensus of the Council was to adjust the sales tax rate to
accommodate the one-half cent for building needs.
The following was a list of the proposed balanced budget items:
323
Program
Appraisal Adjustment
Fund Balance
Demolition
-310,000 $-310,000
+66,848 -243,152
+15,000 -228,152
32'4
City of Denton City Council Minutes
August 27, 1991
Page 29
Pool -8 000
SPAN -10,000
Additional Roll +140,000
Insurance +84,000
Sales Tax +40,000
Flow Hospital +22,000
1/2~ for repairs -48,000
Sales Tax Adjust. +8,152
Tax Rate of $.6851
-236 152
-246 152
-106,152
-22,152
+17,848
+39,848
-8 152
With no further business, Hopkins motioned, Trent seconded to
adjourn. Motion carried unanimously.
BETTY/WILLIAMS
DEPUTY CITY SECRETARY
CITY OF DENTON, TEXAS
CITY OF DENTON, TW. XAS/
¢fl N'I' Slr WA'.TERS
~TY S~CRETARY
CITY OF DENTON, TEXAS
3440C