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Minutes August 10, 1993188 CITY OF DENTON CITY COUNCIL MINUTES AUGUST 10, 1993 The Council convened into the Special Call Session at 4:00 p.m. in the Civil Defense Room. PRESENT: Mayor Castleberry; Mayor Pro Tem Smith; Council Members Brock, Cott, Perry, and Miller. ABSENT: Council Member Chew 1. The Council considered a motion approving nominations to a Sales Tax Citizens Advisory Committee. Mayor Castleberry read the names for the Committee: Tom Harpool, Joe Alford, Derrell Bulls, Dorothy Damico, Alton Donsbach, Neil Durrance, Byron Hart, William Lucker, Roy Metzler, Bill Patterson, Barbara Philips, John Ellis Price, Tom Sass, Ellen Schertz, and Bill Utter, Sr. Brock motioned, Smith seconded to approve the nominations. On roll vote, Brock "aye", Cott "aye", Miller "aye", Smith "aye", Perry "aye", and Mayor Castleberry "aye". Motion carried unanimously. 2. The Council received and considered budget presentations from the following departments: Lloyd Harrell, City Manager, stated that this was the second formal study session on the proposed 1993-94 City budget. Department directors would be making summary presentations on their individual budgets concentrating on major changes from last year and major policy issues contained within their budgets. Discussion the following week would be information from questions from Council. Regarding the Municipal Court, new legislation had passed authorizing Denton's Municipal Court of Record. An individual task force was working to move into that area. An analysis was needed of revenue/expenditure needs to be accommodated within this budget for the Court of Record. City Services General Government Catherine Tuck, Administrative Assistant,- stated that the budget included the City Manager's Office, the City Secretary and Council. The proposed budget was similar to the previous year with the addition of two packages. Those packages were for a public information officer and a change in a secretary position from part- time to full-time. Included in the secretary package was a one time cost for a computer package. Council Member Cott asked about the $20,000 from Utilities for the Public Information Officer. 189 City of Denton city Council Minutes August 10, 1993 Page 2 Tuck replied that $20,000 would be shifted to the Utility Fund which would allow him to divide his activities between utility and general government duties. City Manager Harrell stated that that would not be a new cost to the City but would be a new cost to the general fund with a corresponding decrease to the utility fund. Council Member Cott asked if it were not done to that extent, could utility rates be reduced. City Manager Harrell stated that in the proposed budget $20,000 less would be reflected in the utility department salaries. Tuck continued that there were decreases in the supplies, sundry, and maintenance accounts with an increase in services. The largest increase was in services for travel for CMO, City Secretary and Council. Traditionally, not all seven Council Member attended every event which would allow extra money for non-budgeted trips. This was not the case with this Council. Core areas of interest were maintained but there was less flexibility for unbudgeted areas. Council Member Cott asked if in the past, had the Council ever paid its own way or paid for meals, etc. Tuck replied that as the Council was a volunteer group, the City paid costs for training and meetings but not for personal expenses. City Manager Harrell stated that some communities paid a salary or paid members on a per meeting basis but Denton's Charter did not allow for that. Mayor Pro Tem smith felt that the suggestions for travel were well advised. Leqal Debra Drayovitch, City Attorney, stated that personal services was up due to hiring individuals with more experience which required a higher salary. Two packages were included in the proposed budget for secretarial overtime and for printer maintenance for the office. The services category contained a category for funding an outside attorney to help rewrite the City's Zoning ordinance. No n~w positions were requested. 190 City of Denton City Council Minutes August 10, 1993 Page 3 Council Member 'Cott asked if the $20,000 for the zoning ordinance was the total additional cost. If the zoning ordinance rewrite were not done, could costs be reduced. Drayovitch replied that if the rewrite were not done that money could be spent elsewhere or could be put back in reserve. Council Member Cott asked if the $20,000 was the only amount to spend for the zoning ordinance in the budget. Drayovitch replied that her budget was the only place in the budget for that project. City Manager Harrell stated that if Council decided to leave $20,000 in the budget, it would have to review what was being proposed from the Land Use Planning Committee after the budget process. At that point, Council would have to decide whether to proceed or not proceed with the rewrite. There were no set aside support funds for the project but there would be a commitment on the Planning and Zoning staff for costs already incurred. Council Member Brock asked if the City Manager anticipated that special legal counsel would be needed just to study the ordinance for the Council to decide whether it wanted to adopt it. City Manger Harrell replied that there would be several levels of review. There would be a briefing following the budget which would not involve outside counsel detailing the concept and how it would work. At that point, if Council agreed, staff would work with outside legal counsel for analysis. Council Member Brock asked that if the review were not done, then the funds would not be spent. City Manager Harrell replied correct and that the funds would rollover into next year's fund reserve. Planninq and Development Frank Robbins, Executive Director for Planning, stated that the Community Improvement Division had been merged with Utilities for the proposed budget. The proposed budget reflected a reduction of a professional position being transferred to Utilities. Supplies and services were different from last year due to copying costs. Staff was now producing their own copies. The Certified Local Government survey would not be done. Mayor Pro Tem Smith asked for the cost of the survey. 191 City of Denton City Council Minutes August 10, 1993 Page 4 Robbins replied that the Historic Landmark Commission had proposed a multi-year program which was $10,000 worth of work as the State reimbursed the City. It was felt that the survey could be done in two years at a cost of $10,000 per year. city Manager Harrell indicated that the proposed budget listed all of the packages which were approved by the Executive Staff and those which were not approved. This survey was not included in the packages which were approved and if Council wanted to add it into the budget, $3,954 would have to be added to the budget. Council Member Cott requested that the move of the Community Improvement Department be put in a total summary. Mayor Castleberry asked for a new department organizational chart plus a job description for that area. Council Member Cott asked for a budget for just that department. Robbins continued with the Building Inspections budget. Code Enforcement would now be included in that budget which caused the budget in that category to be increased. Services was increased due to Code Enforcement mowing fund caused by Code Enforcement being moved into Building Inspections. The proposed budget reflected funding to purchase a new vehicle, a network card to connect to the City's main frame and the purchase of a building code book. Council Member Cott asked if the work done by Code Enforcement had ever been ranked by the type of enforcement done. City Manager Harrell replied that that was a policy direction from the Council as far as the level of enforcement for various issues. Council Member Cott suggested that after budget, a study session be done to go over the type of code enforcement on various issues. Council Member Miller stated that Council needed to decide what type of enforcement it wanted but that it must be careful with standards which would be set. Council Member Perry stated that some of that type of ranking had been done in the Parks and Recreation area with the mowing of public areas. 192 City of Denton City Council Minutes August 10, 1993 Page 5 City Manager Harrell stated that Council had had a similar discussion last year when it was decided to terminate after hour patrols by the Animal Control Officers and only respond on a complaint basis. Robbins continued with the Main Street budget which contained no major changes in the proposed budget. The Community Improvement Division had been merged with Planning Inspections and Main Street budgets for the proposed budget. Robbins also reviewed the contributions to outside agencies regarding the Human Resources Committee and allocations to those various agencies. Finance Administration John McGrane, Executive Director for Finance, stated that the administration budget was primarily the same budget as last year. Two packages were proposed for GFOA membership dues and to restore document printing. Printing was taken out of the budget last year but when the quality of the document was looked at along with the increased requests for copies, additional funding was required for the printing of the budget. Council Member Cott asked about the development of a five year financial forecast. McGrane replied that a five year financial forecast had been produced in the past but was not used much. The forecast was discontinued but the Department would like to restore it as a new document. McGrane continued with the miscellaneous expense and contributions to other agencies. In the Utilities Department Council increased last year the amount given for economic development and that amount had been returned to the General Fund. In the salary savings and salary adjustment category, if Council approved the budget, this money would distributed to each department per the adopted budget. The Laylor fund recipients were noted in the various categories. Council Member Cott asked for a discussion on cash projections for the Laylor agencies such as on a quarterly basis. City Manager Harrell stated that the Council was scheduled to approve the budgets of the agencies at an upcoming Council meeting. Mayor Castleberry asked about the dues and publications category. 193 City of Denton City Council Minutes August 10, 1993 Page 6 McGrane replied that that category contained city-wide dues for the Texas Municipal League, the National League of cities and the Council of Governments. Although the category was titled "dues and publications" there were no publication fees included in the amounts shown. McGrane noted that the liability insurance had decreased due to the City's risk management program. City Manager Harrell added that the self-insurance fund had been built up which also helped with the fund. Municipal Judqe Sandra White, Municipal Judge, stated that her budget remained the same as last year. She had two requests for packages which included funding for a permanent part-time judge for 20 hours of work and a request for a computer to be hooked to the mainframe. The part-time judge position would assist with the juvenile case work and the computer request was to upgrade her office work. Council Member Cott asked about the status of the City's Court of Record work and was any of that anticipated in the budget. White replied that the costs were not incorporated into the budget as Court of Record bill had not been approved at the time of the budget preparation. A task force was in place and was considering the impact on various departments. Purchasinq/Warehouse Tom Shaw, Purchasing Agent, stated that there were no major changes over the prior year budget. Two packages were submitted for an upgrade of a PC and a DBase IV software for vendor update. Council Member Cott suggested a study regarding the use of bar codes at the warehouse. Shaw continued with the Warehouse Working capital budget which included funding for a new forklift and for a roof over an outdoor concrete storage area. Customer Service Harlan Jefferson, Director of Treasury Operations, stated that there would be a decrease for the Internal Audit function which was shown as a new division for the 1993-94 budget. The proposed budget also included dollars to reclassify a Customer Service 194 City of Denton City Council Minutes August 10, 1993 Page 7 Supervisor to a Customer Service Analyst and the upgrade of a temporary position to full-time status with a zero net increase in the baseline. Treasury/Cashiering Jefferson stated that this budget was similar from last year with only an increase for additional phone costs. Mayor Castleberry asked a reason for the parking meter receipts loss of revenue. Jefferson stated that the actual for 1991-92 increased due to increased enforcement of fund collection. Tax Jefferson stated that the only change was a change in overtime. No other changes were indicated in that budget. Municipal Court Jefferson stated that the budget reflected a mid-year appropriation to add a 1/4 part-time position. The proposed budget also included a lease for a copy machine and the addition of a new warrant clerk with a zero net increase in baseline. Accountinq and Budqet Operations Kathy DuBose, Director of Accounting and Budget Operations, stated that the major change in the proposed budget was the funding for a Utility Cost Analyst paid for by Utilities and an upgrade of a PC. Council Member Miller asked about administrative transfers. DuBose replied that in prior years both direct costs and indirect costs were listed. This year only direct costs were reflected. McGrane stated that the administrative tran~fe~ were eo~t~ done every year with an outside agency assisting in determining the costs. Council Member Chew arrived at the meeting. Mayor Castleberry asked if the Utility Cost Analyst was a new position. 195 city of Denton city Council Minutes August 10, 1993 Page 8 DuBose replied that it was added last year and was only shifted from the department. Internal Audit Ann Bingman, Internal Auditor, stated that the 1993-94 budget was the same as last year. The proposed budget showed the Internal Audit function as a separate division while prior to 1993-94, the Internal Audit budget was included with Customer Service. The proposed budget also included money to restore telephone funding. Information Services Gary Collins, Director of Information Services, stated that his budget was the same as last year with major increases for two packages. One was for consulting services for the utility billing system and payroll system. The second package was for a virus diagnostic software package. Council Member Brock asked for an explanation of the consulting services. Collins replied that in the past the City had paid a maintenance contract for consulting services on the payroll and utility billing system. That service had discontinued producing new releases and new updates of the software so the City had since been contracting for consulting services with former employees of the consulting service. Administrative Services Mary Ramsey, Administration Services Manager, stated that her budget included a lease for a network backup system. McGrane stated that there had been a question regarding computer systems. The budget did show the debt service requirement which would be paid by either the ad valorem tax portions or transfers to help pay that one year debt service on the general obligation bonds both current and refunded certificates of obligations and contractual obligations. This was for the current year only. city Manager Harrell stated that the way the planning was put together for the certificates of obligations, they would be sold the last half of the next fiscal year. 196 City of Denton City Council Minutes August 10, 1993 Page 9 Municipal Services Municipal Services/Economic Development Linda Ratliff, Economic Development Coordinator, reviewed the economic development projects which had occurred during the past year. She stated that the proposed budget reflected no major changes. Environmental Services Nonie Kull, Environmental Health Services Manager, stated that there were no changes in the proposed budget over last year. The reinspection fee instituted this fiscal year would net approximately $6,757 to date with only one complaint regarding the reinspection fee. Library Eva Poole, Library Director, stated that the proposed budget was impacted by County funding with a decrease over the last several years. Based on discussions with the County Judge, it appeared that funding would decrease again this year. A second concern was additional staff. Instead of filling her former position of Library Services Manager, three lesser positions in the Library would be added. Parks and Recreation Rich Dlugas, Superintendent of Parks and Recreation, presented the budget proposals for Parks Administration, Leisure Services and Parks Maintenance. In the Administration area, the proposed budget divided the office supplies account among the Administration, Leisure Services and Parks Departments to provide for a more efficient management of departmental expenditures. In the Leisure Services Department an increase was shown in office supplies due to a restructuring of the office supplies account. Parks and Recreation showed an increase for a full time mowing and part-time grounds keeper for that division. Additional funds were requested for contractual mowing at the Rails to Trails Park. Another issue was the seller fee. According to the current City ordinance, the City received 10% of gross receipts which were received from any admission fee, beverage or food sales which occurred on public property. This discouraged potential renters to use city facilities and approximately 5-6 major rentals were lost due to that fee. A second concern of the seller's fee was that the provision stated that the fee had to be assessed on any public property such as Fred Moore Park. The Park and Recreation Board 197 City of Denton City Council Minutes August 10, 1993 Page 10 approved an $8 per hour fee for the sale of food, beverage, etc. and would be only at certain facilities and at the two major parks. This would allow events at smaller parks which would encourage additional renters. A second fee issue was the non-resident and administrative fee. These fees were used to set program fees and currently were based on a sliding scale depending on the cost of the class. In past years this tended to discourage non-resident participation and often resulted in a class not meeting. Staff was suggesting to reduce the non-resident fees to .increase participation. Area cities were surveyed and the highest area fee was $3. Residents would be allowed to sign up first during the week of registration before non-residents would be allowed to sign up. The standard administration fee would be $3.50 and $7.00 for non-residents. The Park and Recreation Board approved the fees. Council Member Perry asked about the swimming pool water situation. Dlugas stated that there was algae in water and the water level had been taken down. When new water was added from the City system, that water contained ammonia which increased the growth of the algae. The water had now been cleared. Council Member Perry asked for a total cost to support the athletic programs. Dlugas replied approximately $160,000 for athletic field maintenance not including lighting. Council Member Perry asked if alcohol was allowed to be sold at any of the parks. Dlugas replied it not was not allowed to be sold except for a co- sponsored event by the City. Some parks allowed consumption of alcohol in the parks or in the parking lots. Council Member Miller asked for the amount of fees received from the Civic Center rental. Dlugas replied $613 was received last year. If the policy were revised, he felt the City would get more renters for the Center. Council Member Cott asked if any studies had been done regarding the use of artificial turf on the playing fields and slower growing grass on the non-playing fields. Bob Tickner, Superintendent of Parks, stated that artificial turf was used for a field with varied uses. The trend was to return to 198 City of Denton City Council Minutes August 10, 1993 Page 11 grasses and the upfront cost was extremely expensive for artificial turf. City Manager Harrell stated that he was not aware of any municipal park facility with artificial turf. Council Member Chew asked about staffing at the MLK Center. Dlugas replied that he had had meetings with the MLK staff to look at ways to fund a 1/2 time recreation leader or expand the building attendant hours. The major concern was that if the full time programmers were used for evening hours then they would not being able to do programs during the day. Council Member Perry asked how the staffing at MLK, due to the volume, compared with standard staffing at other centers. Dlugas replied that the staffing was the same as at other centers. Part of the problem at MLK was the way the building was laid out which made it difficult to supervise certain areas. There had been one meeting with the Association regarding the general fund issue and the $3.00 athletic participate fee to assist with maintenance of the new parks at North Lakes. Council Member Miller asked if there was a charge for use of the lighted tennis courts. Dlugas replied no but the courts had to be rented. Council Member Miller expressed concern for this issue due to the potential emotional conflicts over the issue. City Manager Harrell stated that $17,000 would be spent at North Lakes and that the proposal was that the fee be spread out to all users of lighted city facilities. The charge would be on a per team fee basis. The taxpayers would be picking up $62,000 worth of maintenance fees for the additional fields. This would tie in with a particular expense for the activity. Council Member Chew felt that a $3.50 per child per activity seemed expensive. Dlugas continued with the recreation fund and provided examples of activities funded through this account. There were no major budget changes proposed for this division. 199 City of Denton City Council Minutes August 10, 1993 Page 12 Facilities Manaqement Bruce Hennington, Facilities Manager, stated that this budget included proposals for funding for the operation of the Denton Municipal Complex, restoring utility funds, increasing Center for the Visual Arts electrical funds, a Technician II position, ADA renovations and library maintenance. It also included a reduction of funds due to Service Center debt refinancing. city Manager Harrell stated that the City paid the Greater Denton Arts Council Laylor funds but that the City was responsible for utility costs plus maintenance up to $6,000 and janitorial work. Council Member Miller stated that a problem needed to be addressed at the Library. The inner doors were very heavy doors and wheelchair patrons were not able to open them. Currently those doors were being kept open but would not be during the winter months and thus a problem could develop. Hennington replied that three options were being developed to solve that problem. Automatic doors would cost over $7,000. Mayor Pro Tem smith asked if the City were in general compliance with the ADA regulations. Hennington stated that a city would be in compliance when it had a plan and followed that plan. Denton was probably above compliance according to the law. Council Member Brock asked for a review of what the City was currently paying for rental space. Hennington replied the rent was approximately $90,000 per year with a 5% increase. Notification had been made that the City would be moving out in 9 months. That rent money would be applied to operation and maintenance for the Denton Municipal Center. Human Resources Tom Klinck, Personnel Director, stated that the Human Resources administrative budget would overall be the same as last year. The proposed budget included funding of $28,000 for legal assistance and $19,000 for a wellness program. There would be a reduction of $11,435 for tuition reimbursement costs and $7,200 in Special Services which would be moved to a miscellaneous fund and would be managed separately. One of the reasons ~or this was that the civil Service exams were mandated by law and needed to budgeted directly. The tuition reimbursement funds were being separated also because 20O City of Denton City Council Minutes August 10, 1993 Page 13 they were benefit costs which were allowed to be set by the Council as a part of the budget process. Last year the reimbursement level was at 80% and was proposed to be 50% this year. There were approximately 79 participants and in order to meet the budget, the amount of reimbursement had to be reduced. The wellness awareness program would enhance awareness, education and communication for wellness issues to the employees. Some of the initiatives already in place included a smoke-free workplace, drug-free workplace, employee assistance program, free use of the Parks and Recreation facilities, and a discount program at the TWU Wellness Center. A request was for $19,000 to assist in start-up fundamental initiatives such as a risk appraisal to obtain a base line for all employees. The money would also provide for incentives to recognize and promote wellness, assess/implement pilot exercise alternatives, and an educational series on various issues. City Manager Harrell stated that the Wellness Committee was an appointed committee of City employees. That Committee had been working on wellness programs and working with employees to increase wellness awareness. Their recommendation was for far more than the $19,000 proposing for the program. Klinck stated that the Committee recognized that in the long term, wellness would have impact on insurance costs and productivity. He continued that the proposed budget included $28,000 for legal assistance for human resource issues due to an increase in federal and local laws which were employment related. There was a need to revise and implement new policies. The dollars would be used for legal expertise in the area of human resources. Council Member Miller asked for the amount of tuition aid the City was currently spending. Klinck replied that $11,435 in the baseline funding had already been spent with the summer programs left to fund. Council Member Miller asked if there was a constant dollar amount and if there were greater participation, then the amount of reimbursement was lower. Was that included in the Dolicy. Klinck replied that the policy provided that each year the reimbursement level would be set as a part of the budget process. Betty McKean, Executive Director for Economic Development and Municipal Services, stated that if the money were used by mid-year, no one else would be reimbursed. 201 city of Denton City Council Minutes August 10, 1993 Page 14 Council Member Miller felt that it was an odd way to budget something as important as to encourage employees to improve their knowledge and skills. He suggested that Council look at that item in terms of what it would cost to keep it at least at the current level. Klinck replied that to keep it at the same level would require $7,750 at an 80% reimbursement level. Council Member Chew agreed that this area should be increased instead of being decreased. Council Member Brock stated that last year the standards were changed as to what would be reimbursed. Compensation and Benefits Klinck stated that the market analysis and adjustment philosophy of the Council was that the City would strive to be competitive at the 50th percentile of the composite market based on actual salaries paid within the market. With the implementation of the results of the Mercer Study finalized in January of 1992, Council adopted a two part compensation philosophy to assist in developing recommendations. The City needed to remain competitive in the labor market in order to attract new talent and retain the current talent and make fiscally responsible and economic realistic decisions relative to pay adjustments. Klinck reviewed the market analysis and adjustments procedures dealing with the current classification and compensation plan. Part of that included a salary survey from comparable organizations that Denton drew labor from and lost labor to. Last year there was no market adjustment given with the market moving approximately 4-5%. This year it appeared that the market was moving approximately 3-4% and added to the lapse last year, the City was approximately 8.8% behind the market. Klinck also reviewed compensation adjustments and the philosophy of Council for those adjustments which was to compensate employees in direct relation to the value of the position and their contributions to the success of the City and their department goals and objectives. As the City continued with the program, refinements were needed to the pay system. It was suggested to decrease the number of categories from four to three levels of performance and reduce the quartiles from four to two. The matrix would represent above and below market. It was important to try and move higher performing and satisfactory employees to market in four year if the employee exceeded performance and 6 years if the employee met performance. In budgeting for these dollars it was assumed that the distribution would be 30% in the exceeds category and 60% in the meets category. 2O2 City of Denton City Council Minutes August 10, 1993 Page 15 Council Member Miller stated that this would assume that the market remained constant over the four year period. Klinck replied yes. It was desired to award employees above the market based on how the market was moving plus award all employees. In order to do that it was recommended to move the ranges 2%. It was also recommended that there be staggered implementation for non-civil service employees with a Police and Fire movement of 4% and a seasonal movement of 2%. council Member Miller asked why Civil Service was not moving 4.6% as well as other categories. Klinck replied that a determination was how the market was moving generally and the budgeted amount of dollars available. This was a pay for performance as opposed to the step program for Civil Service. Council Member Miller requested information regarding the cost for a 4.6% increase for Civil Service employees. Klinck outlined a proposed incentive plus program which was an immediate recognition awards program. This would provide immediate recognition and cash awards for outstanding service. There would be an average of $25-$250 with benefits and had budgeted for three- quarters of the employees both civil service and non-civil service. Council Member Miller asked if this would be a bonus or be built into an employee's pay. Klinck replied that it would be a cash award. Regulations required it to be taxed. The guidelines provided for $25-250 per individual or team member. The work would be contributed to a special project outside normal job duties and responsibilities. It would be a unique contribution beyond the usual and customary activities of an individual job or work group responsibilities. City Manager Harrell stated that the Public Utilities Board had been suggesting this incentive plu~ program f~r th~ last several years. Mayor Castleberry asked if there were another method of incentive. He felt that the money in a future check might not have a big effect. Klinck replied that a voucher would be used so that an employee would receive immediate recognition. 203 city of Denton city Council Minutes August 10, 1993 Page 16 Council Member Cott asked if there would be checks or balance on how the money was given. Klinck replied that the department director would authorize the amount. Council Member Brock asked for the total dollar amount. Klinck replied that there was $75,000 in the general fund. Each department would have a budget which would provide for approximately $150 for three-quarters of that department. Council Member Miller stated that this was not in major budget issues and felt that it should be. Council Member Cott suggested that if Council proceeded with this project that a 6 month review be done regarding the program. Council Member Miller stated that these programs were good but was not sure about adding a new program while cutting back on basic programs. Klinck continued with the proposed benefit enhancements which included TMRS Senate Bill 505, prior service buy-back and Senate Bill 593, military service credit and TMRS at 6%. Senate Bill 505 was a series of three benefits with the most important to improve retirement eligibility. Currently the requirements were 10 years of service at age 60, 25 years at age 50 and 28 years of service at any age. The improved plan would required 10-24 years of service eligible at age 60 and 24 years or more of service at any age. The overall cost was approximately $15,000 to the general fund. Prior service buy-back enabled an employee to buy time back for prior municipal service. Military Service Credit allowed an employee with 10 years of TMRS credit to purchase up to 60 months active military service. Senate Bill 593 allowed for restricted prior service credit for non-TMRS service anywhere in the united States and enhanced retiree supplemental death benefits. The TMRS benefit proposal included employees 1% , a benefit adjustment of 5% and a City contribution of 7.5% for a 12.5% contribution. Fire employees would contribute 4%, a benefit adjustment of 5% and a City contribution of 9% for a total of 14%. Council Member Miller asked if there was a difference of opinion between what the city was saying it was doing and the perception the firefighters had as to what the City was doing. He felt that needed to be clarified. 204 City of Denton City Council Minutes August 10, 1993 Page 17 City Manager Harrell stated that staff was preparing a response. One year a determination was made that in lieu of a pay increase the City would pick up tha 5% of the employee share of TMRS. That decision was applied to non-civil service and to the firefighters. The firefighters stated that that was not an employee contribution, it was a "pay kicker". Drainage Lee Allison, Director of Water Operations and Engineering, stated that the issues facing drainage as reflected in the proposed budget were operational as opposed to financial. Instead of trying to add to resources, it was proposed to maintain at target level. There was an indicated need of $1.3 million for all projects needed in the City. Several years ago, drainage moved from the Street Department and now working as a maintenance group. The proposed budget did eliminate one position but also added several temporary positions in order to assist with summer work load. A goal for the year was to develop a written operation and maintenance guild for maintenance of the drainage ditches. Utilities Bob Nelson, Executive Director for Utilities, stated that the expected revenue in 1994 was approximately $69,108,600 with expenses at approximately $68,982,000. Important factors regarding the budget included the increased cost of TMOA, the increased cost of natural gas, a reduction in personnel, and a restructured organization. The average increase for an electric customer would be 3.2% with an average residential customer's bill increasing from $66.21 per month to $68.13 per month. In the water area, revenues were expected to be approximately $13,825,000 with expenses at approximately $13,458,000. Operations were fairly stable with a need to prepare for the 1999 $2,100,000 Ray Roberts increase. There would be a change in sales to Corinth and Lake Cities Municipal Utility Authority to the UTRWD in 1994. The average increase would be 4% with an average residential customer's bill increasing $1.17 per month from $29.00 for 8,500 gallon average to $30.37 per month. Wastewater exDected revenues were projected at $8,607,000 with expenses at $8,067,000. Factors to be considered with the wastewater area were increased environmental regulations, debt service and ROI payments on a new $9 million plant, repayment of past debt of $6 million to the Electric Department, and added depreciation costs. It was anticipated that there would be a 13% average increase with an average residential customer paying an additional $2.16 per month from $16.59 to $18.75 per month. Revenues for the sanitation fund were expected to be approximately $5,094,600 with expenses to be approximately $5,087,000. Major 2O5 City of Denton City Council Minutes August 10, 1993 Page 18 considerations included restructuring and an emphasis on recycling, a change in yard waste service, a composting program, new landfill engineering/permitting costs. An average increase of 8% was expected with a residential customer's bill increasing $.50 per month to $11.15 per month. Fleet services would project a greater focus on preventative maintenance, shop rates at 75% of private market and a break-even operation. Electric Jim Harder, Director of Electric Utilities, stated that the electric budget had been changed for the budget year 1993-94. The electric fund would now be budgeted and reported on the Federal Regulatory Commission's chart of accounts which was standard reporting for the electric utility industry. Personnel was decreasing by three individuals due to the restructuring of the departments in the Electric Division. There was an increase in the purchased power category due to the TMPA rate structure increase and an increase in the rate charged to the City from TMPA. He detailed rate projections for Denton electric based on the 1993 TMPA refinancing structure. Nelson stated there was $10 million of contingency available for the electric utility. There was a margin for any unusual years or unusual expenditures. Council Member Chew left the meeting. Water Lee Allison, Director of Water Operations and Engineering, stated that for the third year in a row operation and maintenance expenses had been reduced. Four major issues for the Water Department included Lake Ray Roberts increases, growth, and regionalization in dealing with the Upper Trinity Regional Water District. The Construction Manager position would be eliminated with the retirement of the individual in that position. Council Member Brock asked what the plans were for an additional water tower. Nelson replied it was scheduled for the 1995 CIP. hydraulic studies were in process at this time. Preliminary Wastewater Howard Martin, Director of Environmental Services/Financial Administrator, restated the wastewater expenses and revenues. If 206 City of Denton City Council Minutes August 10, 1993 Page 19 fixed assets were removed from the operating budget there would be almost the same budget as the prior year. The miscellaneous category increase represented a repayment to the Electric Department. The fixed asset category increase was due to replacement of collectors and interceptors across the City. He presented a projected percentage of rate increases for the next several years. Community Services Bill Angelo, Director of Community Services, stated that there were many changes in this proposed budget which included the creation of a recycling budget, the transfer of the litter crew to the commercial department, and a reallocation of an administrative transfer. New programs included a fully automated study and pilot for residential customers, a utility technician for residential customers, a commercial driver, a commercial supervisor, a load inspection program at the landfill, a chlorinated fluorocarbon program at the landfill, gas monitors at the landfill, a landfill engineer, geotechnical services at the landfill, Vision Denton, a contribution to beautification, and a solid waste franchise fee. New recycling programs included a recycling coordinator, an in- house and office paper recycling program, a separate yard waste/composting program, cardboard recycling, plastics recycling, cable swap network, waste oil collection expansion and recycling site expansions. Regarding the yard waste/composing program, yard waste collection would be on Wednesday only. The material would be taken to the landfill and reduced to a mulch. That mulch would be given to the Wastewater Treatment Plant for co-composting with sludge. Residents would be allowed 6 bags per week and anything over that would be charged $.50 per bag and would be allowed one cubic yard of brush. Council Member Cott stated that the City could not look at break even with these, it needed to make a profit. Angelo stated that recycling would not pay for itself at this particular point in time. Council Member Perry stated that reduction of landfill waste would be beneficial as opposed to making a profit. Council Member Miller stated that there was a need to be careful of any hidden costs which might be involved. Mayor Pro Tem Smith asked for the guidelines as to how much to reduce the flow to the landfill. 207 City of Denton city Council Minutes August 10, 1993 Page 20 Angelo replied it was 40% but no one would be able to meet that goal. Mayor Pro Tem Smith asked for the percentage of reduction with these proposals. Angelo replied it would be approximately 15% for all of the programs. Mayor Castleberry felt that most of the major industries were already recycling and selling their own products. city Manager Harrell stated that the proposed budget recommended discontinuing the pilot curbside recycling area. Motor Pool and Fleet Services Angelo indicated a major decrease in motor pool expenses. New programs included two additional employees for Step - Up level BOM, a truck wash facility, funding for EMIS enhancement/replacement and implementation of inventory systems, part-time intern to maintain interest allocation program and project motor pool revenues and expenses, two part-time interns for four months to work on fleet utilization study and mechanic training funds. With no further business, the meeting was adjourned at 10:20 p.m. SEq TA Y CITY OF DENTON, TEXAS CITY OF DENTON, ACC0013A