Minutes May 14, 1996372
CITY OF DENTON CITY COUNCIL MINUTES
May 14, 1996
The Council convened into a Closed Meeting on Tuesday, May 14, 1996
at 6:15 p.m. in the Civil Defense Room of City Hall.
PRESENT: Mayor Miller; Council Members Beasley, Biles, Cott,
Krueger, and Young.
ABSENT: Mayor Pro Tem Brock
1.
The Council considered the following in Closed Meeting:
A. Legal Matters -- Under TEX. GOV'T CODE Sec. 551.071
B. Real Estate -- Under TEX. GOV'T CODE Sec. 551.072
1. Considered acceptance of a possible assignment on behalf
of a 4B non-profit economic development corporation to be formed by
the City from Bill Methenitis, Trustee, relative to the vacant
Texas Instruments facility.
Ce
Personnel/Board Appointments -- Under TEX. GOV'T CODE
Sec. 551.074
The Council convened into a Work Session on Tuesday, May 14, 1996
at 7:00 p.m. in the City Council Chambers of City Hall.
PRESENT: Mayor Miller; Council Members Beasley, Cott, Krueger, and
Young.
ABSENT: Mayor Pro Tem Brock; Council Member Biles
1. The Council received a report, held a discussion and gave
staff direction concerning impact fees.
Rick Svehla, Deputy City Manager, stated that the Council had
received a report from the consultant regarding the impact fee
issue. At this point it was felt that this was not the time to
institute impact fees. Reasons for this decision were the latest
bond issue, Department of Transportation funding on highways, and
the possibility of reinstituting pro rata for utility lines.
Council Member Krueger stated that because of the City's current
abiliti~ and ~u~ent ~t~ategies, impact fees were not needed. He
questioned how that intermixed with the economic development % cent
sales tax.
Svehla replied that there were a number of cities which had impact
fees. Impact fees were viewed as an impediment to growth and
d~v~lopment.
Council Member Biles joined the meeting.
373
City of Denton City Council~Minu~es~ ~ ~
May 14, 1996
Page 2
Council Member Krueger stated that if theCity had the ½ cent sales
tax for economic development, the impact fee issues would not be
discussed.
Svehla replied that it would depend on how and on what the Economic
Development Committee was using those funds. If the City had the
½ cent it could look at ways to help eliminate those effects that
a development might have by the use of the sales tax or other kinds
of incentives or uses of the money.
Consensus of the Council was to not consider th~ impact fees at
this point in time.
Council Member Biles stated that one area from the economic
development sales tax discussion that needed serious consideration
was the dedicating of a large share of the sales tax to the
development of infrastructure. That was a must and was an
effective tool to bring the right kinds of business to the City.
He suggested forwarding to the Economic Development Board of
Directors the impact fees and notes on the direction taken by
Council. This needed to be in the equation in sales tax discussion
and debate.
Mayor Miller stated that the impact fee would not be for industrial
.development but would be for residential development.
2. The Council received a report, held a discussion and gave
staff direction regarding the Human Services Committee
recommendations for use of 1996 human services funds.
Recommendations include both CDBG and general fund dollars. The
Human Services Committee recommended approval of the 1996 Community
Development Action Plan and approval of the general fund
recommendations.
Barbara Ross, Community Development Coordinator, stated that the
City had not estimated correctly the amount of CDBG and HOME funds
it would be receiving from the Federal government. The city had
received notice that it would be receiving $95,000 more than
anticipated. That was about $20,000 more in combined HOME and CDBG
funds than received last year which equated to an increase in
Federal funding. The agenda packet contained the current action
plan which included the estimated funds which the Committees
considered and allocated. With Council's approval, the Committees
would ask the Council at the next meeting to approve that estimated
amount o~ ~unding and the way it was set up in the action plan.
The additional funds received would be set up as unprogrammed
funds. The Committees would then deliberate on how to distribute
the additional funding. Along with the increase there was
3:74
City of Denton City Council Minutes
May 14, 1996
Page 3
additional increases in set asides including an increase in the
administration set aside, an increase in the set aside for the
community housing development organizations and an increase in the
human services set aside of 15%. With the possibility of
additional human services dollars, the Committees would be
requested to consider possibly shifting some of those funds from
CDBG to the general fund to those activities which were previously
funded with general fund dollars. The request for Council approval
next week did not include the general fund human services dollars.
Sandy Kristoferson, Chair-Human Services Advisory Committee,
reviewed the recommendations from the Committee as noted in the
agenda back-up materials.
Council Member Young asked why the proposal from "Starting Over"
was not considered.
Kristoferson stated that several years ago when the organization
first made application, it did not have a non-profit status. This
year it did not have a facility to operate in at this point in
time. Historically, the Committee had not funded agencies which
were not operational to take care of clients. The organization also
had significant funding from other agencies.
Council Member Krueger stated that in the backup materials,
Interfaith Ministries was asked the question about clients who were
United States citizens who received the assistance. Ms. Ross
indicated that there was no policy stated and could not be asked
with CDBG funds.
Kristoferson stated that regarding CDBG funds, the only criteria
was low to moderate income and did not have anything to do with
nationality.
Council Member Krueger asked about the funding for Planned
Parenthood. The back-up materials indicated that with the use of
public funds for an organization that did abortions, Federal grants
and Title 10 and 20 had to have an assurance that no tax dollars
were being spent on abor%ion~. Did %h~ dollars which the city wa~
going to give Planned Parenthood fall under Federal grants.
Kristoferson stated that Planned Parenthood was not receiving any
dollars from the City. The money asked for was for equipment but
it was not recommended for funding.
Council Member Young asked if the Adult Day Care was receiving
funds.
375
City of Denton City Council~Minutes ~
May 14, 1996
Page 4
Kristoferson replied yes that they were receiving $12,000.
Council Member Young asked if the agency was helping minorities.
Kristoferson stated that that question was addressed to the
presenters. They were trying to gather clients from the community
as a whole. The African-American and Hispanic communities tended
to have larger extended families which cared for their elderly and
at this time there seemed to be no way to encourage those people to
bring their adults to the Center.
Cott motioned, Biles seconded to proceed with the staff
recommendations. On roll vote, Beasley "aye", Brock "aye", Cott
"aye", Krueger "aye", Young "aye", Biles "aye", and Mayor Miller
"aye". Motion carried unanimously.
Mayor Miller requested that the project ProyectoAmistad at the MLK
Center be considered for funding under the budget process. There
was a need for a person in the form of a social worker to help the
Hispanic community.
Council Member Beasley also suggested that staff investigate how
this program could be implemented. There was a great deal of need
for this in the Hispanic population. She asked staff to see how
this could be funded in the regular budget process.
Council Member Young requested staff to look at funding for
Starting Over as there was a need for this type of agency.
Council Member Cott suggested that staff look at all related
services and see how to begin the long process of consolidating
services.
Kristoferson stated that the agencies were currently in the process
of beginning such a consolidation.
3. The Council received a report, held a discussion and gave
staff direction regarding the Community Development Advisory
Committee's recommendations for use of 1996 Community Development
Block Grant (CDBG) and HOME funds. The Community Development
Advisory Committee recommended adoption of the 1996 Community
Development Action Plan.
Lisa Polack, Community Development Advisory Committee, presented
the 1996 Action Plan for use of the Community Development Block
Grant and HOME funds. The Action Plan was based on funding of $1,
646,747. The funding was broken down into four major categories of
affordable housing, human services, public facilities and
3:7 6
city of Denton City Council Minutes
May 14, 1996
Page 5
improvements and economic development. The major goal was to
provide money for projects that benefited moderate to low income
households. In terns of affordable housing, funding totaled 68% of
the total budget, human services totalled 13% of the funds, public
facilities and improvements totalled 16.5% of the funds and
economic development totalled 2% of the funds.
Council Member Young felt that the speed bumps on Ruddell should be
removed from the budget. The people in the community did not want
the speed bumps as they aggravated traffic and the Fire chief had
indicated that they put a strain on the fire trucks. They appeared
to be more of a problem rather than a help. He suggested lowering
the speed limit rather than putting in the speed bumps. The people
in the community wanted an activity stage which was not considered
for funding. He requested that the activity stage be included in
the funding.
Young motioned, Cottseconded to remove the speed bumps on Ruddell
and add the activity stage for Fred Moore Park for funding.
Council Member Biles stated that he understood that the speed bumps
did not have a broad level of support in the area and that they
were not necessarily the answer to the problem in the area.
Ross replied that this proposal came to the Engineering Department
from the neighborhood.
Council Member Biles felt that the geographical layout of the
streets would not achieve the desired situation. There would be
some future drainage improvements in the area and he hoped the
speed bumps would not be added before completing that work. For at
least a year a performance stage at Fred Moore Park had been
requested. The funding for the stage was estimated at $45,000. He
was not sure that amount of money needed to be spent on a
performance stage but given the amount of activities which went on
in that park and the emphasis on the need to further positive
relations in the area, he supported the idea of moving ahead with
the stage. $45,000 might not be the level which was needed.
Perhaps progressive additions to the stage could be added through
the years. He agreed with taking out the speed bumps and putting
it towards the stage.
Mayor Miller asked if there were funds available for this request.
R~ r~plie~ ~ha~ ~here was $34,000 in CDBG funds and $22,000 in
HOME funds to be allocated.
City of Denton city Council Minutes
May 14, 1996
Page 6
Mayor Miller stated that depending on the cost and if the speed
bumps were removed, there would be funding for all the other
recommended areas.
Council Member Biles stated that the $45,000 might be the minimum
funding needed. He would like to know other alternatives for
funding for the stage.
Ross stated that the $45,000 was based on a band shell similar to
the one at the Civic Center Park. Something could be done with
less funds if needed.
Council Member Beasley stated that the speed bumps were from the
CIP and was an issue raised at a community meeting at MLK. Having
driven those streets, there might not be a need for the speed bumps
but rather a lower speed limit. She supported the idea of an
activity stage but supported the idea of having a sound back on the
stage so that it was done correctly from the start rather than done
half way.
Mayor Miller stated that if the motion was approved, the direction
to staff would be to erect a stage which would be appropriate for
the use of the park. He felt that the band shell with a back was
needed. The motion was to approve the recommendations from the
CDBG Committee to have the staff bring back the recommendations at
the next meeting for Council approval, taking out the speed bumps
and putting in an amount for the activity stage at Fred Moore park.
Ross stated that an application had to be submitted by June 15.
Would the Council allow the $7500 to be unprogrammed and give the
Committee time to reconsider the activity stage with the new
funding. The $7500 and the speed bumps would be pulled and
consider that as unprogrammed in this application to HUD with a
letter to HUD that that money would be programmed very quickly and
the additional application amounts sent to them.
Council Member Biles stated that the $7500 would be specifically
diverted to the activity stage.
Ross replied that that could be done or the Committee could review
the request.
Mayor Miller stated that next week the CoUncil would see an
application with the $7500 removed and then a supplemental
application would be done in the future for a stage in Fred Moore
Park.
378
City of Denton City Council Minutes
May 14, 1996
Page 7
City Manager Benavides stated that the motion could designate the
$7500 would be for the activity stage.
Young and Biles agreed to the change in the motion and second to
designate the $7,500 for an activity stage. On roll vote, Beasley
"aye", Brock "aye", Cott "aye", Krueger "aye", Young "aye", Biles
"aye", and Mayor Miller "aye". Motion carried unanimously.
4. The Council received a presentation of six month financial
statements for the general, utility and internal service funds.
Kathy DuBose, Executive Director for Finance, stated that the ad
valorem taxes were due in October and became delinquent in
February. Currently they were at 47% collection for both current
and delinquent taxes. At the end of March, the city was at 50% of
the budget but was at $122,000 under the year to date budget for
the sales tax. since that time, the city had had another month
where the sales tax had fallen below budget and was now $185,000
under the current year to date estimate.
Mayor Miller asked if that was heavy loaded on the front end due to
the christmas sales.
DuBose replied yes as well as the fact that the increase in sales
tax to reduce property taxes became effective in October of 1994
and the City saw the receipts of that increase in January of 1995.
Council Member Biles stated that the City was still behind in sales
tax.
DuBose stated that the City was $185,000 behind the year to date
estimate in sales tax.
Council Member Cott stated that part of that might be the fact that
Wal-Mart was moving. There were also many empty stores at the
Golden Triangle Mall.
DuBose stated that many of the metroplex cities around the State
had all ~hown a decrease in the sales tax for the same period. She
detailed the financial comparisons of the various categories as
presented in the agenda back-up materials.
Council Member Krueger felt that it was not true that the sales tax
revenue was front end loaded. He felt that in a six month
projection, there was not much difference between the first six
months and the last six months.
City of Denton City Counci~Minutes : ~
May 14, 1996
Page 8
DuBose stated that there was because the Christmas season was the
highest quarter receipts. There were monthly taxpayers and there
were quarterly taxpayers so once every three months, the City had
a large payment. The quarter which reflected the sales for
christmas was a large receipt.
Council Member Krueger stated that September-October's receipts
were lower so that there was not a great deal difference between
the two six month quarters.
DuBose stated that a regression analysis was done to look over the
trends and took into consideration new facilities on line, etc.
Council Member Krueger asked what would happen if the trend
continued and the overall budget was 1% over projection in revenues
but the sales tax maintained its trend. Last year during the budget
process a negative amount was needed to make up before the'process
could start. Even though the sales tax projections might be weak,
if the budget came in over projections, why did the process start
with a negative amount when working on the budget.
DuBose replied that the Council had set a standard to retain
approximately 10% of the fund balance for 10% of the expenditures.
When there was a year where there was over 10%, one overage was
incorporated into one time expenditures. Last year it was
estimated to come in at 15% and were $1.7 million over the 10%.
That allowed money to be used for one time expenditures such as
vehicle replacement.
Council Member Krueger stated that when the budget preparations
were started, there was a shortfall of approximately $120,000 due
to the sales tax revenues being off. He was asking why, if the
final figures were over budget, the process had to start with a
negative figure.
DuBose replied that between June and the time the final sales tax
numbers were received, lost sales tax was realized.
Council Member Krueger stated that it was confusing that at the end
of the budget process a revenue surplus was shown as compared to a
expenditure deficit, when in fact there was no deficit.
City Manager Benavides stated that evenif more money was made than
budgeted, some of that money was one time and not reoccurring.
There was a need to go back to the base and determine what would be
reoccurring income to support reoccurring costs.
380
city of Denton city Council Minutes
May 14, 1996
Page 9
Council Member Biles stated that the bond analysts indicated that
the city should have not less than 10% in the fund balance because
if it dropped, the City would spend that much money in one year
just on the additional interest charges on outstanding bonds.
DuBose stated that two years before in the same time frame, it was
possible to indicate that the actuals were higher than the
projections and allowed the Council to look at other possibilities.
Last year it was different as the sales tax was low. She reviewed
the expenditures year to date as indicated in the agenda back-up
materials.
5. The Council received a report, held a discussion and gave
staff direction regarding a credit for February wastewater bills.
Bob Nelson, Executive Director for Utilities, stated that
wastewater charges were based on water volumes. Two months ago
staff asked for a fine tuning of the methodology of doing rates and
gave a rebate for some abnormal high usages for December. There
continued to be dry weather and some customers had requested a
closer look at the rate. In December 1995 the City's customers
used a lot of water and were 56% above normal usage. In January the
customers were 13% below the seven year average and in February the
customers were 17% above the normal average. There were three
issues to consider with this item. One was should credit be
extended for the above normal February sewer bills. About 30% of
the customers had bills which were at least 25% above normal. The
second was should the calculation change the methodology and use
the historical average of the band width between less than 25% or
greater than 25% or leave it at the 50% band width above or below
the historical average. The third was if a change was made to the
25% band width, should a credit be made for March, April and May as
those months were already billed. The Public Utilities Board
recommended to grant a credit for 25% above average, change the
band width to 25% and give an adjustment for the March, April and
May bills. The new average would be used for the rest of the year.
Consensus of the Council was to proceed with implementing the
PuDllc utilities Board recommenda%ions. On roll vote, Bea~le¥
"aye", Cott "aye", Krueger "aye", Young "aye", Biles "aye", and
Mayor Miller "aye". Motion carried unanimously.
6. The Council received a report and distributed supplemental
1996-97 budget priority questionnaire.
Kathy DuBose, Executive Director for Finance, stated that staff was
requesting Council to provide a supplemental budget questionnaire
with the new Council Member now on board. She reviewed the process
381
City of Denton City Council Minutes :~
May 14, 1996
Page 10
for completing the questionnaire.
Following the completion of the Work Session, the Council convened
into a Special Called Meeting.
PRESENT: Mayor Miller; Council Members Beasley, Biles, Cott,
Krueger, and Young.
ABSENT: Mayor Pro Tem Brock
1. The Council considered approval of a resolution amending
Resolution No. R96-017 authorizing the creation of the Economic
Development Corporation of Denton, Inc. as an instrumentality of
the City of Denton; to more clearly express the purposes of the
Economic Development Corporation of Denton, Inc.
City Attorney Prouty stated that this resolution provided for a
technical correction as the result of a recent Attorney General's
opinion which indicated that a county could not make loans or
grants of public money to an industrial development corporation for
promotion of economic development unless the activity accomplished
a public purpose. This resolution would amend Section 4 of the
original resolution which created the economic development
corporation to express that everything the new economic development
corporation did would accomplish a public purpose. It would more
clearly state that the purpose for which the EDC could be formed
under the Economic Development Act of 1979. It also made clear
that if programs for economic development were going to be done
under Section 380.001 of the Local Government Code they would be
consistent with the Economic Development Act of 1979 and would be
for a public purpose. The changes did not alter the basic format
of the EDC and continued the same Board of Directors and structure
of the bylaws and Articles of Incorporation.
The following resolution was considered:
NO. R96-023
A RESOLUTION AMENDING RESOLUTION NO. R96-017 AUTHORIZING THE
CREATION OF THE ECONOMIC DEVELOPMENT CORPOEATION OF DENTON,
INC. AS AI~ INSTRUMENTALITY OF THE CITY OF DENTON; TO MORE
CLEARLY EXPRESS THE PURPOSES OF THE ECONOMIC DEVELOPMENT
CORPORATION OF DENTON, INC.; AND PROVIDINGAN EFFECTIVE DATE.
Krueger motioned, Young to approve the resolution. On roll vo%e,
Beasley "aye", Cott "aye", Krueger "aye", Young "aye", Biles "aye",
and Mayor Miller "aye". Motion carried unanimously.
382
City of Denton City Council Minutes
May 14, 1996
Page 11
City Manager Benavides stated that there were two suggested dates
for the Council's planning session - June 21-22 or June 28-29. He
asked Council which dates would be better for their schedules.
Consensus of the Council was that June 28-29th would be the better
dates. Staff would look for locations at which to hold the
planning session and return to Council with suggestions.
With no further business,
~TY S~CRETARY
C~TY OF DENTON, TEXAS
the meeting was adjourned at 8:45 p.m.
JACK/~ILLER, MAYOR
CIT~/OF DENTON, TEXAS
ACCO030D