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Minutes August 08, 1997CITY OF DENTON CITY COUNCIL MINUTES AUGUST 8, 1997 The Council convened into a Work Session at 9:00 a.m. on August 8, 1997 in the Golden Eagle Suite at the University of North Texas. PRESENT: Mayor Miller; Mayor Pro Tem Brock; Council Members Beasley, Kristoferson, and Cochran. AB SENT: Council Members Durrance and Young Kathy DuBose, Executive Director for Finance, stated that the highlights of the proposed budget included City Council priorities, increased public safety, drainage projects, a property tax rate reduction, continued implementation of the technology plan, a self-supporting budget in which on- going expenses were balanced with reoccurring revenue and a compensation proposal. General Fund Reqerve |,evel - in the past, Council set this level at 10% of the General Fund expenditures. This budget increased that level to 12.5% in hopes of placing the City in a position of a bond rating upgrade. l I~qe off)ne-Time Reqonrceq - With the increase of the fund balance to 12.5%, excess one-time revenue would be used for drainage needs; building needs; vehicles and equipment; a reserve for Research Boulevard; insurance and contingencies; and one-time compensation costs and miscellaneous costs. Saleq tax 1/, Cent to Reduce Property Tax and a 1 Cent General Pnrpaqe Tax - a 5% growth was projected over the current year. The new property tax value added almost $93 million. Existing values increased $23 million for a total increase in 1997. The current property tax rate was $.52840, the rollback rate was $.55534, the effective rate was $.51954 and the proposed rate of $.51315 represented a 2.9% reduction and included an increase of the over 65 exemption to $25,000. The proposed budget included various increases in fees that were included in the budget document. Pay Plan - it was proposed that CMl Service employees would receive a 4% increase on October 1, an 8.5% increase on April 1, 1998 and normal step increases during the year. Non-CMl Service employees would receive a 4% increase October 1 st, a change in minimum rate of pay from 80 to 90% of midpoint on May 1st, an average 3% PRI increase, and all employees would be brought to a new minimum or a 4% increase, whichever was greater, on May 1, 1998. The TMRS benefit adjustment would include a 20 year any age retirement option. Public Safety Feamreq - federal grants were included in the budget to hire nine new police officers and purchase mobile data computers and enhance the DARE program. $485,000 in certificates of obligation would be issued to improve the Central Fire Station, install an early warning A.M. radio station and hire an additional fire inspector. Vehicleq - a vehicle/equipment replacement criteria was established in 1994 which included high mileage/high hours, high maintenance costs and economic life. The proposed budget included funding to replace 54 units of which 36 were included in the General Fund at a cost of $257,634. Facilitieq - funding was included to renovate the cooling/heating system at the Martin Luther King, Jr. City of Denton City Council Minutes August 8, 1997 Page 2 Recreation Center, renovate the cooling/heating system at the Service Center, miscellaneous Service Center renovations and furniture and renovation associated with Phase II of City Hall renovation. Public Transportation Funding - SPAN had experienced a 43% reduction in federal funds since 1996 and the routes were changed in 1996-97. Funding was sought from COG and TxDOT and the 1997- 98 proposed budget included $129,145 for SPAN. Dzainage - a 58% increase in operating funds was proposed in the budget, flood response equipment and overtime was included. $260,000 in certificates of obligation would be issued to purchase a flood warning system and automated flood gates, five new positions were proposed, a safety program, and a dedicated dumpster and landfill charges for a street sweeper. ~qmall Neighborhood and Comprehensive Planning - the Planning Department was undergoing a departmental reorganization. The development review process, comprehensive planning and small area planning would be considered during the next year. A new planner position was proposed along with the reclassification of two part-time Keep Denton Beautiful positions to one full time planner. l,ong-range Technology Plan the proposed budget included the acquisition of mid-range computers/software, a LAN administrator, and an expansion of the City 1NTERNET services. Capital Improvement Program - the proposed budget took the five year plan approved by the voters in 1996 and changed it to a four-year plan. The final year of the plan was moved to next year. This would require debt service for the next two years. Paqitionq for the General fired - proposed positions included nine Police Officers, one Fire Inspector, five Service Maintenance Workers in drainage, one Librarian, one storm Drainage Engineer, one Right-of-Way Technician, one Public Transportation Administrator, one Planner, one Service Maintenance position in Facilities Management, one LAN Administrator in Information Services. Changes in positions included one reclassification to Librarian, one part-time Clerk would be made full time in Planning and two part-time Clerks would be made into one full time Planner, one half-time Clerk in the City Secretary's Office would be made full time. Positions eliminated included four full time employees would be eliminated from Park Maintenance and associated work would be contracted, one half-time student aide would be added to Customer Service, one Human Resource Generalist would be eliminated and associated work would be contracted. Other ~qerviceq - extended library hours, books and materials and vehicles, Airport grant funding, a mower and sweeper, funds for Research Boulevard, visualization, a City of Denton newspaper half- page ad each month, and human service agency contributions were proposed. Parks and Recreation would have increased park and median maintenance, funding for the IMAG1NE program, a relocation of the Union Pacific Railroad depot, contract restroom cleaning and litter removal. The City would also join the Texas Cities Legislation Coalition. Other services included a City Manager contingency, cable television to televise the Planning and Zoning Commission meetings, and funding to the Denton Chamber of Commerce at their requested level. City of Denton City Council Minutes August 8, 1997 Page 3 Hotel Occupancy Tax Funding - the 1997-98 proposed allocation funding to fifteen organizations to promote tourism, additional hotel occupancy tax reserve allocation, and a contractual carry-forward balance. There would be one-year contract allocations based on a percentage with an amount not to exceed a cap. Council Member Young stated that the general budget was good. He did not like the dumpster fees but when looking at area cities, Denton was still lower in cost. Council Member Cochran stated that he would like more information regarding the visualization program with the University. He also asked about the proposal to replace Park staff positions with contract labor. DuBose stated that these would be on-going contracts. They were positions that were not easy to keep filled and would be contracted out. Council Member Cochran asked about progress of the Chamber of Commerce to match funds given by the City. City Manager Benavides stated that the Public Utilities Board and the Chamber had worked out a provision in the contract for future funding and the Chamber would match the City's funding. This contract would be brought to Council the first part of October for consideration. The entire funding and contract would stay the same if the General Fund made up the difference. Council Member Beasley felt that it was good to televise the Planning and Zoning meetings. She asked how much it would cost to replay some of the meetings each week. She felt that it would be a good idea for City Council meetings. She was concerned about reducing the tax rate and whether the sales tax rate would be good. City Manager Benavides stated that a 5~A% increase had been budgeted. But if the sales tax did not stay there, cost savings measures would have to be implemented. Mayor Pro Tem Brock asked about the cost of transfers and street fees. She questioned the relationships in other cities and how those related. Council Member Young expressed concern about the fees charged at the Fred Moore Park ball park. Before the last fee increase, there were many playing at the park. Now there was only one tournament a year as the fees were too high. DuBose stated that that was done by the athletic leagues and not done by the City. She continued that the following agencies would be receiving two-year contracts for hotel/motel occupancy tax funding: the Convention and Visitors Bureau, the Greater Denton Arts Council, the North Texas State Fair Association, the Denton Historical Museum, the Denton County Historical Foundation. The following organization would receive one-year contracts: the Denton Main Street Association, the Denton County Amphitheater Association, the Denton Festival Foundation, the Denton Black Chamber of City of Denton City Council Minutes August 8, 1997 Page 4 Commerce, the Denton Hispanic Chamber of Commerce, the Denton Historic Landmark Commission. First year of funding would go to the following organizations: the Denton Community Theatre, the Denton Holiday Festival Foundation, Friends of Denton County History, Inc., Scholars Phair Foundation of Texas, Storytelling, UNT Athletics. Council Member Young stated that he would like to look at the funding for the Denton County Historical Museum as they received a $10,000 decrease and the Denton County Historical Foundation would not be receiving any funding. DuBose stated that there were three items the Committee considered. Those included the promotion of tourism; one year contracts allowing, in a year, the ability to reassess those organizations; and an allocation based on percentages up to the budgeted level. Council Member Young motioned that the Museum, the Foundation and the Fair Association be funded at the same level as last year. Council Member Cochran stated that if that were done, other organizations would have to have a decrease in funding. DuBose replied correct. Council Member Young stated that the reserve funding could be used. DuBose stated that the reserve was only $22,000. Motion died for a lack of a second. Council Member Beasley agreed that there was a need to look at the agencies and the philosophy of giving out funds. There was also a need to look at staff`time associated with these contracts. Mayor Pro Tem Brock suggested considering three year contracts with annual reviews. Council Member Kristoferson questioned the one year contracts. DuBose stated that those were used to be able to reassess the organizations on an annual basis on what each entity had done during the year. It could also be used to assess new agencies. Council Member Young asked if these were the figures that would be set for the organizations. DuBose stated that that was up to the Council. This was the Committee recommendation. Mayor Miller stated that there would be no decisions made today. There would be no final decision but rather a recommended place to begin. Council Member Durrance arrived at the meeting. City of Denton City Council Minutes August 8, 1997 Page 5 DuBose continued with the utility side of the budget. There was no increase in base rates for electric. Position changes in the Electric Department included the net elimination of .75 full time equivalent positions and a transfer of 3.3 full time employees to the new Communications Fund. Division changes included a new internal service communications fund, the elimination of the meter reading and dispatch divisions to create a new Marketing Division. The proposed return on investment/franchise fee included a 3.5% return on investment and a 4% franchise (street rental) fee. Debt requirements for the Electric Department included $4 million in bonds to improve the transmission/distribution system over the next three years. There were no base rate changes in the water rates. A study was proposed for water connect and installation fee adjustments with no final recommendation at this point in time. Position changes included the elimination of four full time employees. Return on investment/franchise fee included a change in return on investment and franchise fee transfer to have it similar to existing franchise agreements with private companies. Debt requirements included possible Ray Roberts water supply debt refinancing at $334 million. Council Member Beasley asked about water taps in the budget. Bob Nelson, Executive Director for Utilities, stated that this budget was proposing to increase water/sewer tap fees. These fees had not been adjusted in four years. DuBose continued with the wastewater proposals. There would be no increase in the base rate with connect and installation fee adjustments. Position changes proposed would be a net elimination of seven full time employees. The return of investment/franchise fee included a change in the return on investment and franchise fee transfer, similar to existing franchise agreements with private companies. Solid Waste positions would net an elimination of one full time employee. The franchise fee would increase from 3% to 4% similar to fees charged to private companies. Solid Waste Long Term Strategies included having each solid waste operation be self-supporting, fees based on cost of service, being competitive with the market, encouraging larger dumpster/less frequent pick ups, phasing out two yard commercial dumpsters, encouraging customers to select no more than three times per week pickup, and scheduling all permanent roll off pickups for Tuesday, Thursday, and Saturday. The solid waste proposed rates increased dumpsters 4.50%, open tops 18%, temporary dumpsters 4.50%, and compactors 14%. Council Member Young felt that citizens should be able to use the landfill for free. Citizens were already paying taxes for the landfill and should not have to pay again. Howard Martin, Director of Environmental Services, stated that there had been a change from the smaller to larger dumpster and from more time per week to less times per week as desired with the rate change. Denton currently had the lowest rates of all area cities. Even with the rate increase, Denton would still remain low. There were options which the individuals could use to lower costs. Mayor Miller suggested that Council wait for a recommendation from the Public Utilities Board after they reviewed the rates. Council Member Cochran suggested coordinating amnesty days with Keep Denton Beautiful for City of Denton City Council Minutes August 8, 1997 Page 6 individuals to bring items to the landfill. He suggested working towards equalizing the imbalance between the residents and the commercial accounts. It was a question of allowing outside users to use the landfill. DuBose concluded with the proposal for Fleet Services that would eliminate one full time equivalent. Staff would research any questions that the Council had raised during the meeting and provide any additional information requested. With no further business, the meeting was adjourned at 2:20 p.m. JACK MILLER, MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS