Minutes August 8, 1995 CITY OF DENTON CITY COUNCIL MINUTES
AUGUST 8, 1995
The Council convened into a Work Session on Tuesday, August 8, 1995
at 4:00 p.m. in the City Council Chambers.
PRESENT: Mayor Castleberry; Mayor Pro Tem Biles; Council Members
Cott and Miller
ABSENT: Council Members Brock, Krueger, and Young.
City Manager Harrell stated that this was the formal start of the
budget hearings. At this meeting and the next, Council would have
presentations from staff providing an overview of their particular
operation and how it was being impacted by the proposed budget.
This was a time for Council to raise questions regarding these
budgets and their proposals. The August 15th meeting would start
at 4:00 p.m. with formal budget presentations until 7:00 p.m. The
August 22nd meeting would schedule the public hearing regarding the
proposed budget.
Council Member Young joined the meeting.
city Manager Harrell stated that the Council would also hear from
the hotel/motel tax recipients at the August 22nd meeting. The
meeting of August 29th and September 5th were devoted entirely to
Council's discussion regarding the budget. September 5th would
begin a preliminary budget balancing.
Council Member Cott asked if the economic development discussion
would be a part of the process.
City Manager Harrell stated that at the next agenda, Council would
have an ordinance formally approving the contract which Council had
discussed. Council would also have, as part of the budget, the
Utility Department contribution to the economic development effort.
Council Member Miller asked if Council should only ask questions
for clarification as the reports were received from staff and not
go into long discussions.
City Manger Harrell stated that it would be helpful if Council
asked questions for clarification only and request additional
information if necessary. As the budget stood today, in order to
balance the budget the Council would need to either reduce
expenditures by $341,000 or add revenues of that amount or a
combination thereof. There was a $93,800 loss in the certified tax
roll. It had been projected that the Appraisal District would not
reduce the appraised value as much as they did. Two County
contributions had an effect on the budget figures. There was an
increase in the contribution to the library fund with an increase
of $1,400 over what was projected in the budget. However, there
was a loss in the County ambulance contribution of approximately
~26,279. Last ¥~a~ th~ County adopted a formula for EMS service
which called for lj3 population, 1/3 for amount of territory
serviced and 1/3 for the number of calls made. Last year there was
a severe drop in the number of ambulance calls for the County which
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drove the number down substantially.
Council Member Krueger joined the meeting.
City Manager Harrell stated that this might be a one year drop as
the number of runs had already increased this year.
Council Member Young asked what the County and the City did
pertaining to the library.
City Manager Harrell stated that last year the County developed a
formula to fund library services in the County which remained
constant for this year. The preliminary numbers for the sales tax
receipts had been received. June was down $79,000 from the
projected budget and July was down $143,000. The budget process
would then start with a deficit of $341,000 which needed to be
included in either a budget reduction in expenditures or an
increase in revenue. One other unknown was the amount of rate
increase in the health insurance premium. There were two remaining
months of sales tax numbers which would have to be considered
during the budget process.
1. The Council received reports and held discussions regarding
the following budget hearings:
General Government - Joseph Portugal, Assistant to the City
Manager, stated that the general government administration
interfaced with many other city departments. There were four major
packages for this department. Those package included (1) a records
management package for $1,000 for microfilming; (2) $2,580 to
restore funding for the City Manager's office to attend the Texas
City Manager's Association conference; (3) a laser printer for
$1,680; and (4) a COG intern at $1,800.
Richard Foster, Public Information officer, presented the budget
for the Public Information Office. The budget reflected $28,740 to
fund a citizen newsletter. Currently the newsletter was included
in the three times per year Parks and Recreation brochure. This
package would change the newsletter to a quarterly stand alone
direct mail newsletter. At least for the next fiscal year, 75% of
the total cost of the newsletter was funded by the Utilities
D=purtment. This budget also inoluded $386 for a new printer. The
cable television budget included a video producer/director who
would be funded by a $.25 fee on cable television subscriptions.
There were no other changes in the proposed budget.
Council Member Krueger asked about the increase in supplies.
Foster replied that that was the package for the citizen newsletter
which was offset by the Utility Department.
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Council Member Krueger asked about the increase in services.
Foster stated the supplies would be the sorting and the postage.
The services included the newsletter project.
Council Member Young asked if the newsletters were mailed with the
utility bill.
Foster stated that the proposal would have this be separate from a
utility bill. It was felt that a direct mail piece would have a
greater readability for the citizens rather than included with
another item.
City Manager Harrell stated that another concern was the
comprehensive list of items which were already placed in with the
utility bill. The small size of the utility bill would prohibit
the size of the newsletter which could be mailed.
Council Member Young felt that money could be saved by sending the
newsletter with the utility bill.
city Manager Harrell indicated that staff would develop information
regarding that proposal.
Mayor Pro Tem Biles asked for a report on other types of
publications and the format of those publications which the city
sent out.
Council Member Krueger suggested integrating Parks and Recreation
brochures, library publications, etc. into one newsletter for
savings.
Mayor Castleberry asked about reductions in advertising which might
be included in the newsletter.
Council Member Krueger asked if the increase in cable television
personal services was the increase of a half-time person.
Foster replied correct that the position would be a full time
position but only full-time for half of the year.
Mayor Pro Tem Biles asked if the individual would produce the
television commercials for the City.
Foster replied that the individual would supervise the broadcasts
of the Council meetings and could help produce a weekly news
program dealing with current events and issues, interviews with the
council members and Drogramming for other deDartments.
Council Member Krueger asked for the general resources on the
revenue side.
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City Manager Harrell stated that those were primarily tax funds
which would be used to balance the budget.
Legal - Herb Prouty, City Attorney, stated that his budget was
much the same as last year. Document production was reduced due to
the lack of a full staff for most of the year and it was
anticipated that higher levels would be achieved during the next
year. It was also anticipated that there would be more work
associated with the Municipal Court of Record for the next year.
Two budget changes were to continue the conversion of their law
books to CD ROM which was more efficient for legal research. It
also freed up space for the department. Another budget change was
a request for filing cabinets for $2,230.
Mayor Pro Tem Biles asked about outside counsel fees.
Prouty stated that outside counsel fees were reflected in the
services account. The services account would be down next year.
Some of funds in that account were dedicated for legal work for
another department such as a rewrite of the zoning ordinance. The
rest of the amount was for outside counsel for complex cases. As
the Department was short staffed last year, not as many cases could
be handled. That should change now that the department was full
staffed.
Human Resources - Tom Klinck, Director of Human Resources, reviewed
the department's strategic services and major goals. Overall his
1994-95 budget would be under budget due to staff turnover. The
proposed budget for his department was greater due to health
insurance increases. He was requesting funding for three personal
computers and for the COG Discount Plan. The budget reflected a
reorganization within the division which down-graded a professional
position and eliminated temporary/seasonal hours to fund an office
clerical position. The budget provided for funding to implement a
drug and alcohol random testing program as outlined by the
Department of Transportation. The $9,000 was for three-fourths of
a year as it was implemented January 1, 1995. It was anticipated
that $16,000 would be needed for the program for the next fiscal
year.
Council Member Cott asked if any risk management had been applied
to the drug te~ting item~.
Klinck replied that as a result of implementing that program, there
had been some improvement in risk management activities. The City
was required by the Department of Transportation to test 25% of the
City's 200 commercial drivers for alcohol and 50% for drugs.
Council had d~termin~d to apply those same standards to all
employees in safety sensitive positions.
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Council Member Young asked about funding for the JTPA Program. He
also asked about benefits for half-time employees.
Klinck replied that the JTPA program was funded by the Federal
government through the State. The City did not budget for any
funding as it was not a City program.
Mayor Pro Tem Biles asked about the occupational nurse position.
Klinck replied that it would be a twenty hour professional services
contract. The City would contract with an individual to provide
the services for the City.
Mayor Pro Tem Biles asked where that was reflected in the budget.
Klinck replied that it would be a zero cost increase paid for by
the Risk Retention Fund.
City Manager Harrell stated that the City had established a risk
retention fund which was funded by assessments made by each
operating department. These funds were used to pay law suit
claims, workers compensation claims, etc. The cost involved with
the occupational nurse would rollover in savings a sufficient
amount on reduced workers compensation claims to pay for the cost
of that allocation.
Council Member Krueger suggested that a way to increase revenues
might be to provide drug testing services to other entities such as
the School District.
Klinck replied that he had a meeting with representatives of the
School District, the University of North Texas, Texas Woman's
University and the State School and was in the process of putting
together a coalition to provide services to those entities. Such
an arrangement could also work with smaller cities for this
service.
Review of Proposed Compensation Package - Tom Klinck, Director of
Human Resources, stated that the Council's philosophy for market
analysis and adjustment was to strive to be competitive at the 50th
percentile of the composite market based on actual salaries paid
within the market. A survey done in the Spring of 1995 indicated
that the City was behind the area market. The compensation
adjustment philosophy 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 objections.
The January 1994 adopted compensation matrix provided for a 4.6%
average overall pay increase and 4.6% for police and fire.
Council Member Miller asked for the average pay increase.
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Klinck replied that the average increase was 4.7% but stayed under
budget total. The compensation proposal for non-civil service was
a 3% market adjustment to the ranges of salary and a matrix which
would provide for a 4.8% average increase. Civil service was
recommended for a 4.8% range adjustment for the pay ranges and
schedule step increases effective January 1, 1996.
Council Member Krueger stated that one factor in a salary range was
once the salary was to the mid-mean point the convenience factor
came into consideration. It was convenient to live in Denton
rather than another city. He asked if that was figured into the
mean range.
Klinck replied that above the market increases were not as great as
those below the market plus the evaluation was based upon
performance. The benefits proposal recommended a 5% health
insurance increase effective January 1, 1996 with negotiations
still continuing. An item which was not recommended for funding
was an increase in the retirement program. The City's retirement
program was currently at 6% 2-1 match while other area cities were
at 7% 2-1 match. This affected the City's ability to recruit and
retain individuals in the organization.
The Council convened into a Closed Meeting in the Civil Defense
Room on Tuesday, August 8, 1995 at 5:30 p.m. No official action
was taken.
Council then returned to staff budget presentations.
Municipal Judae - Sandra White, Municipal Judge, stated that the
Municipal Judge's office consisted of a full-time judge, one
permanent part-time judge, two assistant contract judges and one
secretary. She reviewed her objectives for fiscal year 1995-96 and
workload measures which were detailed in the budget manual. Changes
in her budget reflected funding for services. Three packages were
proposed for her budget. One package recommended for funding was
to add services to pay for dues and publications dealing with
employment contracts of the judges on staff. Additional costs for
office supplies and books for CD ROM disks was necessary. Each
judge needed his own bench book and penal code for personal use.
Another package dealt with a modem for the printer for the
secretary. There were other item= which were not included in th~
Judge's budget which could be discussed at another time.
Council Member Cott asked for the total number of hours per week
the judges were needed.
White replied that ourrently the permanent part-time judge would bo
working 20 hours, most of those hours would be in the evening
hours. The part-time seasonal judges were on-call judges with no
set schedules.
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Vehicles - City Manager Harrell stated that one of the major budget
issues was to replace some of the City's vehicles in a fairly
comprehensive way. There would be various vehicle packages in the
proposed budget.
Harlan Jefferson, Director of Fiscal Operations, presented the
status of the City's fleet. A problem existed in that there was no
current replacement schedule which could result in a safety hazard
to operators and potential increased costs for maintenance. He
presented overheads dealing with the average age of the fleet by
department. The worst area was the Airport with the Police
Department patrol area having the best replacement cycle of
vehicles. Maintenance cost comparisons of the vehicles per
department was also noted.
Council Member Krueger asked if there was a regular scheduled
maintenance program.
Jefferson replied that there was a regular preventative maintenance
program which was run by the Fleet Services Department for all
vehicles.
City Manager Harrell stated that this presentation was given to
Council to provide an idea of the overall condition of the vehicle
fleet. Staff felt that one problem area was that the fleet had
been neglected over the years due to tight budgets. Vehicles which
should have been replaced had not been replaced due to limited
budgets. This report was to provide a general feel of the City's
fleet condition.
Jefferson stated that there was a strong relationship between the
age of the vehicle and the use and the age of the vehicle and
maintenance costs. He presented slides of vehicles in the fleet
relative to maintenance and age. A fleet utilization study was
done to evaluate the size of the fleet and appropriate use of the
vehicles.
Council Member Young felt that the fleet was aging and maintenance
costs were high. Something needed to be done quickly in this area
to update equipment.
Treasury Operations -
Motor Pool - Harlan Jefferson, Director of Fiscal Operations,
stated that last year 32 vehicles were eliminated which generated
$89,000 in revenue from the annual auction. This money was
credited to the appropriate department motor pool accounts.
Certificates of obligation were not issued but rather reserves were
used to replace equipment.
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Council Member Miller asked if interest was calculated on the use
of the reserves.
Jefferson replied that interest was calculated on what the charge
would be on a 3 year treasury note.
Council Member Young asked if the vehicles had warranties and how
long were the warranties when purchased new.
Jack Jarvis, Fleet Supervisor, stated that any time a vehicle was
purchased the warranty was picked up from the dealership. Each
warranty differed with the piece of equipment with some equipment
having extended warranties available.
Council Member Krueger stated that the City loaned money from the
reserve to departments to purchase vehicles and then had to pay
back with interest.
Jefferson stated that in the past a department would purchase a
vehicle from the motor pool with the funds up front. The
department would have to have the capital that year to purchase the
vehicle. Over the next five years the department would pay back to
the motor pool for replacement of that vehicle. Because of
financial constraints over the years, the lease-purchase option was
considered. A large portion of the fleet capital built up in the
reserve and those were the dollars which were used.
Council Member Krueger stated that if there was a large reserve
fund, why was lease-purchase being used.
City Manager Harrell stated that a few vehicles were so expensive
that there was not enough reserves from this type of program. The
purchase of a snorkel would require a certificate of occupancy
rather than lease-purchase. A vast majority of the vehicles would
use this proposed scenario.
Council Member Young stated that he had received many calls from
citizens regarding taking a half a million dollar fire truck to the
grocery store to purchase groceries. He felt that there should be
a utility truck for that type of thing.
city Manager Harrell stated that when a truck was out of the
station, it still was on duty and ready to respond to a call.
Customer Service - Harlan Jefferson, Director for Fiscal
Operations, reviewed the work load measures and objectives in the
budget manual. Major budget changes in this budget reflected an
increase in postage ($5,600), a security system for $5,000, a mail
extractor for $9,350, a consultant service fee for $35,000, a usage
graph for utility bills for $10,000 and a curbside payment box
$3,000.
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August 8, 1995
Page 9
Council Member Biles asked about the consultant service.
Jefferson replied that the consultant would help select and analyze
a new customer billing system.
City Manager Harrell stated that the current system could no longer
be supported as the company had gone out of business. A consultant
would help analyze the types of systems available.
Council Member Krueger stated that the $35,000 was just for the
consultant and not for the software, etc.
Jefferson that the consultant would assist the City in the
selection process, developing the bid specifications, etc.
Council Member Krueger asked for a separate item on consulting fees
in the proposed budget.
Council Member Biles stated that the $35,000 appeared to be a very
large amount.
Jefferson replied that staff had projected what other cities had
used for services. The $35,000 appeared large but if a new system
was implemented and did not work correctly, there could be months
of delays which would be very expensive. The downside in selecting
a poor system would be very costly.
City Manager Harrell asked for the cost for a new system.
Jefferson replied that the purchase price of a system was
approximately $750,000.
City Manager Harrell stated that this showed the magnitude of the
purchase for such a system. This was a utility system expenditure
but was a very substantial investment. It was a crucial step to
modernize the system.
Treasury - Harlan Jefferson, Director of Fiscal Operations,
stated that this budget indicated a change in the structure of the
Finance Department personnel. It included the addition of the Risk
Manager position which was moved from the Finance Administration
Division. It also reflected funding for a copy machine and a
contract for an occupational nurse which was funded by the Risk
Retention Fund.
Municipal Court - Harlan Jefferson, Director of Fiscal
Operations, stated that this budget contained two packages. One
was a proposal to reclassify a clerk Dosition to an Assistant Court
Representative. The other package was to purchase vital records
security paper with the fees for birth/death records increased
slightly to cover the increased cost of the paper.
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Finance
Administration - Darren Asher, Administrative Assistant,
presented a program description and division goals for Finance
Administration as outlined in the budget manual. Major budget
changes included a change in the structure of the Finance
Department personnel transferring the Risk Manger position to
Treasury. The budget also reflected funding for a laptop computer
for the Executive Director for Finance.
Council Member Biles questioned the need for a laptop.
Asher stated that the laptop would provide staff access to perform
financial transactions at home or away when needed.
Kathy DuBose, Executive Director for Finance, stated that she did
not have a computer in her office. The laptop would be her office
computer and would be available to staff when needed.
Purchasing - Tom Shaw, Purchasing Agent, reviewed objectives
for 1995-96 as noted in the budget manual. His budget reflected
funding for a personal computer and a printer for the department.
Warehouse - Tom Shaw, Purchasing Agent, presented goals of the
department as indicated in the budget manual. The major budget
changes included funds to purchase a computer and a printer. His
budget was a base line target budget.
Council Member Young left the meeting.
Internal Audit - Susan Croft, Internal Auditor, stated that
her proposed budget reflected no major changes. She detailed
objectives for her department and ways to achieve those objectives.
Accountinq - Kristin Newman, Comptroller, stated that the
department's baseline budget was affected by two factors. One was
the reorganization of the Finance Department and the other was the
separation of the budget function from the accounting function.
The net effect of the adjustments left the budget the same as in
prior years. Three packages were included in the proposed budget.
One was for an Accounts Payable Clerk to comply with the Prompt
Payable Act whioh required all ao~unt~ payable inv~i~e~ be paid
within 30 days or pay 12% interest. The volume of work in this
area had drastically increased with the current clerks routinely
carrying a balance of 80 hours of compensatory time. This resulted
in extreme burnout and heavy turnover in the department. The second
package was for continuing professional education for the CPA's on
staff. The third package was for a personal computer for the
department.
Council Member Cott asked about burnout in the department.
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287
Newman stated that there had been 12 people in 4 positions in the
last two years. The heavy workload with heavy compensatory time
provided too much stress and resulted in a large turnover.
Budqet/Tax - Jon Fortune, Chief Finance Officer, stated that
this was a new division this year with the budget reflecting a
change in the structure of the Finance Department. This change
separated the budget function from the accounting division. The
Chief Finance officer and an Administrative Assistant I would be
transferred from the Accounting Division. The proposed budget was
requesting funding for a CD ROM and for the County Property Data
software.
Council Member Young returned to the meeting.
Information Services
Administration - Gary Collins, Director of Information
Services, stated that a major goal for this department was to
implement the public safety system and continue to develop long
range strategic plans. The budget reflected funding for GIS
maintenance.
Administrative Services - Gary Collins, Director of
Information Services, stated that this budget would be basically
the same as last year. The budget reflected funding to reclassify
the Administrative Services Representative to a Senior Secretary
position.
Development Services
Planning Administration - Frank Robbins, Director of Planning
and Development, reviewed the major division goals and objectives
as noted in the budget manual. The budget reflected funding for
additional overtime, the addition of a part-time secretary, the
Denton Development Plan update, two uninterrupted power supplies,
an add-a-stack shelving system and a Certified Local Government
grant. The part-time secretary would work with neighborhood
services.
Mayor Pro Tem Biles questioned the $8000 listed for postage in
connection with the Denton Development Plan update.
Robbins replied that that was what it cost to mail to every address
in Denton. That would be one notice document invitation survey to
every address in Denton.
Mayor Pro Tem Biles suggested placing that mailing in with the
information from Richard Foster.
Council Member Miller felt that a report should be prepared
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August 8, 1995
Page 12
regarding mailings from the City instead of trying to separate all
of the mailings out from the budget.
Buildinq Inspections - Robbins stated that there were no major
changes in this budget. The budget reflected the funding for
Motorola radios and the replacement of two vehicles.
Main Street - Robbins indicated that this budget included $200
to pay fuel costs for the Main Street Manager to attend the
Downtown Association Board meetings.
Human Services Aaencv - Barbara Ross, Community Development
Coordinator, stated that the Human Services budget was $900 dollars
less than last year. There was a $3000 increase to Friends of the
Family being recommended by the Committee, a $300 increase to RSVP,
a $4,000 increase to the Denton Independent School District TTRIPS
program, and two agencies not previously funded which were included
this year. Those agencies were Interfaith Ministries for $7500 and
Campfire First Texas Council at $3300.
Drainaqe
Howard Martin, Director of Environmental Services, stated that
the proposed drainage budget was $38,000 more than last year. This
included three packages for barrow ditch and culvert cleaning
maintenance which included a grade-all and pickup truck, a customer
demand response package and a street sweeper. Other packages which
were proposed but not recommended for funding included a light
equipment operator, a small construction project on East McKinney,
special services money and a Bent Oaks Project.
Council Member Young asked how many street sweepers the City had.
Martin replied one with a long period of down time.
Council Member Young felt that one sweeper was not adequate for the
size of Denton.
Council Member Cott asked about the Bent Oaks project.
Martin ~eplied that Bent Oaks was one of the projects which was not
recommended for funding.
Council Member Cott felt that the drainage for Bent Oaks needed to
be considered.
Council Member Krueger asked why drainage was funded ou~ of
General Fund.
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August 8, 1995
Page 13
City Manager Harrell stated that the only item in which a specific
transfer of money was made into a department was if that department
gave direct service to either the electric, water, wastewater or
solid waste function. Administrative functions such as Finance or
Legal provided direct services to the utility system and therefore
they receive an administrative transfer to the general fund.
Utilities
Bob Nelson, Executive Director of Utilities, presented an
overview of the utility issues.
Electric - Significant changes included the electric loss of power
sale to College Station with a net revenue of $1.4 million; a
reduction in the TMPA rate with a total net reduction to Denton of
$1.35 million; 40 million additional KWH sales next year with a
net increase of $800,000 to $900,000; converting University Drive
to an underground line with a capital cost of $1.2 million; holding
the rates steady for the next five years with a proposal to lower
the rates to mid-sized commercial customers to a 3.9% reduction in
1996; the use of reserves after the year 2000 to pay expected
higher TMPA rates.
Water - Items of significance included the elimination of the Water
Director position; setting aside $100,000 to paint the water tower
in 1997; a proposed rate increase of approximately 2%; modest rate
increases of 2.5% to 5% over the next five years to prepare for the
additional $2.1 million/ year for the Lake Ray Roberts debt service
payments and prepare for the new Ray Roberts water plant in 2003 to
2005; a proposed water tower in southwest Denton with a total cost
of $3.5 million with $1.16 million funded from bond funds in 1996.
Wastewater - the Wastewater Department owed the Electric Department
$5 million and it was proposed to repay the Electric Department $1
million in 1996 vs. the $500,000 in 1995 to have it repaid by the
year 2000; a wastewater treatment plant addition would be needed by
the year 2000; the budget proposed a rate increase of 2%; the rate
increase strategy over the years consisted of 2% to 4% to the year
2000 to provide for a wastewater plant addition; repair the three
Hickory Creek sewer line crossings for $400,000; major sewer line
bond projects in 1996 included the relocating of the sewer line on
University Drive for $816,000 and Cooper Creek Line repair.
Solid Waste - construction of the new landfill by 1997 was a major
goal for the Solid Waste Department for the coming fiscal year.
Also included in the goals was the development of recycling
programs, an intermediate processing center in 1998, ramping rates
to a~mm~dat~ th~ ~o~t~ of th~ landfill by 1997 and 1998. The
dumpster rates would also be revised.
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Economic Development Fundinq - the total funding proposed for
economic development within all utility departments was $178,250.
The base funding for the Denton Chamber partnership program was
$85,000 with challenge funding of $28,250 with the other four
utilities in the city. The internal City economic development
office would receive $10,000, the North Texas Commission membership
was $5,000 for a total economic development package of $128,000
which was the equivalent of 1/$th of 1% of the gross revenues of
the electric, water, wastewater and solid waste departments. The
Public Utilities Board recommended funding the Denton Awareness
advertising program at $50,000.
The following were the rate changes which were programmed into the
proposed budget:
Electric - 0% increase except for a 3.9% decrease for small
commercial customers.
Water - 2% increase on retail and a 2.4% increase on wholesale.
Wastewater - 2% increase on retail and a 2.1% increase wholesale.
Solid Waste - 8.3% increase on residential or an increase from
$12.00 to $13.00/month; a 9.1% increase in commercial with a 12%
increase on dumpsters, 2% on open top, 4.1% compactor, and
landfill from $6.00 to $7.00 for city customers.
The average residential utility bill increase would be $2.01 or
1.5%.
Council Member Young asked if the $100,000 was just to paint one
water tower.
Nelson replied correct.
Council Member Young asked to allow students to prepare the design
when the time came to paint the water towers.
Nelson stated that it cost $60-100,000 more to paint designs on the
water towers. The $600,000 total cost did not paint any designs on
the tower. Regarding the utility billing system $300,000 was
budgeted in the Eleotrio Department's speoial service~ budget to
help pay for a new customer information system which was in
addition to the $35,000 in the Customer Service budget. That would
not pay for a complete system and it might take two years to
implement such a system.
Electric - Jim Harder, Director of Electric Utility, stated that
when the budget was prepared, it was uncertain about what would
happen with the TMPA rate to the City. The budget was prepared
based upon the rate staying the same. TMPA decided to drop the rate
City of Denton City Council Minutes
August 8, 1995
Page 15
by $1.25 per KW. The balance of revenue did not reflect the 3.9%
reduction in the small commercial rate. On the expenditure side,
the load would be increased by 47 million KW hours which added
approximately $900,000 to the expenses. Production expenses would
increase by $600,000. The overhead and underground services would
increase due to the $1.9 million capital project for University
Drive. Operation and dispatch would be a separate division for
those expenses. Substations would increase $107,000 due to new
substation breakers which were replaced at two substations.
Customer information would be adding a new position of a full-time
administrative assistant to assist with a quarterly newsletter for
the new customer packet. The demand management reduction was due
to an analysis of several programs which indicated that the net
payback was not as much as hoped. Communication was adding a part-
time clerk. The Administration budget was increasing due to the
partial funding of a customer information system, an administrative
transfer for city Hall renovation and the Chamber of Commerce
economic development effort.
Water - Howard Martin, Director of Environmental Services, stated
that the Water Department would increase its budget for the next
year of $331,000. The Water Administration budget would have a
decrease as the position of Director of Water Operations and
Engineering had been deleted with Martin's salary being split among
three budgets. A dispatcher would be transferred to the Electric
Dispatching operation and it was proposed to reclassify the
Financial Analyst to a Rate Administrator. There were increased
expenses due to the Lillian Miller pipeline payment to the Upper
Trinity Regional Water Distract. There was also approximately
$15,000 included in this budget for economic development. In the
Water Production budget there would be an increase from $5.2
million to $5.4 million due to the higher Ray Roberts water supply
costs and higher well demolition costs. The services budget
included $90,000 for well demolition that would be expended out of
a reserve account that had been set up for this purpose. The
supply budget increases were due to higher chemical prices and
treatment volumes. Water Distribution increases were due to the
transfer of vehicles into Water Field Services from Wastewater
Field Services. The services budget increases were due to higher
motor pool payments for vehicle replacement. Water metering would
have a higher maintenance budget due to higher warehouse materials
expense. Highlights of the Water Engineering budget included a
Senior Engineer position which would be added to work at Denton
West for "One Stop Shopping"; the Manager of Construction Project
position was transferred in from the Solid Waste Department;
Special Services were increased for a Hansen Workorder Maintenance
System in Water; and additional Special Service funds were added
for a water distribution ~y~tem model conversion to cybernet
program. The Water Lab would experience increased maintenance
costs due to the purchase of a maintenance agreement for the Atom
Absorption Spectrometer. Miscellaneous transfers included $200,000
291
292
City of Denton City Council Minutes
August 8, 1995
Page 16
from the Water Department to the Wastewater Department for the
treatment of water plant sledges. The Electric Operation had
always done the meter reading and this year $238,000 would be
transferred to the electric operation for meter reading.
City Manager Harrell stated that there was a dollar amount
programmed into the budget this year for the impact fee study.
There was a like amount in sewer and water to do the engineering
work for the impact fees. Last year during the budget process, it
was decided to wait until the outcome of the Vision Project. In
the next month Council would be considering the contracts to
obligate those funds.
Council Member Cott felt that all funds for Vision were going to go
through the General Fund, be part of a bond issue or not get funded
until next year.
City Manager Harrell stated that last year during the budget
deliberations, Council placed $100,000 in the budget for
engineering work with front end studies to be done and the Council
to decide whether to proceed with the impact fees. Staff delayed
bringing the proposal forward for formal contractual approval until
the first stage of the Vision project was done. That had now been
completed and therefore, a decision the Council made a year ago
would now come to Council for contractual compliance.
Council Member Cott stated that he had a problem with anything
which went after the budget was approved because then the budget
would not have any integrity.
Council Member Miller stated that Council approved this last year
and could have gone ahead with the study but decided to wait until
the Vision process was completed. Vision did not drive this issue.
This was something the Council decided to do.
Council Member Cott stated that the individuals connected with the
Vision project were not elected and the Council was elected to
watch the money for the citizens of Denton. As long as the Vision
project came through before the Council decided on the budget, he
might not have a problem with it. If it came in after the budget
was finalized, he would have a problem with that process.
Council Member Young stated that there was a problem with East
Prairie Street sewer lines and asked if there was any money to fix
that problem.
Martin replied that there was no specific capital programs for East
Prairie between Morrison Milling and Bradshaw. He could look
though the Capital Program to see if there might be some funds to
do such a program.
City of Denton City Council Minutes
August 8, 1995
Page 17
Wastewate~ - Martin stated that there was a personnel change in the
Wastewater Administration budget to include one third of his salary
in this department. One reclassification was proposed to change an
Administrative Assistant II to a Financial Analyst. The budget
also included funding for economic development. The Wastewater
Treatment Plant supply expenses were increased due to higher
chemical costs with the services budget increased due to special
services expenses for the clean out of the secondary anaerobic
digester. Fixed assets were increased due to the upgrade of two
lift stations. The Wastewater Collection budget was increased due
to the service provided by the Engineering and Transportation
Departments. Added motor pool expenses would also increase this
budget with the purchase of a flushing truck. Wastewater
Engineering had an Engineering Technician II position added for
technical support to other divisions. The Wastewater Lab had an
increase in personal services due to the addition of a new
Laboratory Supervisor position. The maintenance budget increased
to support a maintenance contract on the Atomic Absorption
Spectrometer. Industrial Pretreatment had an increase in services
due to the cost necessary to cover the analytical testing for six
additional landfill monitoring wells. There would be a transfer of
$1 million to the Electric Department to help reduce the $5 million
debt. Additional transfers would be made to the Electric Department
for meter reads, turn ons and turn offs.
Solid Waste - Martin indicated that the Superintendent of Solid
Waste was transferred into this budget from the Residential
Division and reclassified at one grade higher. The Administrative
Secretary position was reclassified to a Senior Secretary. Also,
funding for the Director of Environmental Services was decreased
from one-half to one-third. In the Residential Division, the
personal services was decreased because the Superintendent of Solid
Waste was transferred to the administrative budget. Service costs
increased due to higher motor pool payments for vehicles and
equipment in 1995 and 1996. The Commercial Division reflected a
service budget increase due to higher motor pool payments for
vehicle replacements. The Landfill budget personal services
category had a decrease because the Manager of Construction
Projects position was transferred to the Water Engineering
Division. The services budget increased due to the purchase of a
used scraper vehicle. The proposed budget for recycling increased
due primarily to the new or expanded cardboard processing,
woodwaste grinding and other new Solid Waste Master Plan programs.
A majority of the increase was reflected in the services area and
related to motor pool payments for vehicles and equipment. The
budget also reflected the addition of a temporary Maintenance
Worker II position.
Council Member Krueger asked about the increase in the solid waste
recycling budget.
293
2 .9 4City of Denton City Council Minutes
August 8, 1995
Page 18
Martin replied that it included three packages for cardboard
processing with associated revenues, an upsizing of the current
grinder for woodwaste and various elements of Master Plan. $75,000
of the Master Plan was incorporated into the residential collection
budget for curbside containers. Not all of the Master Plan money
was recycling.
Council Member Krueger asked how much of the increase was for the
cardboard processing, the upsizing, etc.
Martin replied that the cardboard expense was $56,000, the upsizing
of the wood grinder was $61,000, and the Master Plan was.S250,000.
Council Member Krueger stated that when the different
configurations for curbside pickup was discussed at the Planning
Session, it was mentioned that staff was exploring partnership
possibilities with the private sector.
Martin stated that the following day he would be meeting with a
private entity to discuss a proposal they submitted to the City
regarding this issue. Staff had had conversations with two
different companies and had visited the facility of a third
company. All of these firms had been sent copies of the Master
Plan and were aware of what the City was trying to accomplish.
Council Member Krueger asked if this could be a key to increased
revenue with such a partnership.
Martin replied yes. The City could benefit from a firm's
processing and marketing experience and they could benefit from the
City's collection experience.
Earl Crews, Budget Rate Analyst, presented the proposed utility
rates and the methodology for calculation.
Fleet Services - Jack Jarvis, Fleet Superintendent, stated that
this department provided vehicle services for all the equipment
within the City. This department was an internally funded
operation and the proposed budget for the next fiscal year was
approximately the same as last year.
with no further business, the meeting was adjourned at 10:40 p.m.
~NNIFE~A-LTERS
~CITY SECRETARY
CITY OF DRNTON, TEXAS
CITY OF DENTON~ TEXA~ ACCOO2AC
/