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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. City of Denton City Council Minutes 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. 297 298 City of Denton city Council Minutes August 27, 1991 Page 3 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. 299. 300 City of Denton City Council Minutes August 27, 1991 Page 5 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 3O2 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. 303 3O4 City of Denton City Council Minutes August 27, 1991 Page 9 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 305 3O6 'City of Denton City Council Minutes 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. 3.07 3'08 City of Denton City Council Minutes 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. 309 310 City of Denton City Council Minutes August 27, 1991 Page 15 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. 311 312 City of Denton City Council Minutes August 27, 1991 Page 17 (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. 313 314 City of Denton City Council Minutes August 27, 1991 Page 19 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%. 315 316 City of Denton City Council Minutes August 27, 1991 Page 21 (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. 317 318 City of Denton City Council Minutes August 27, 1991 Page 23 (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. 319 32O City of Denton City Council Minutes August 27, 1991 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. 321 322 City of Denton City Council Minutes 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