Minutes February 11, 2003CITY OF DENTON CITY COUNCIL M1NUTES
February 11, 2003
After determining that a quorum was present, the City Council convened in a Planning Session
on Tuesday, February 11, 2003 at 4:30 p.m. in the City Council Work Session Room at City
Hall.
PRESENT:
Mayor Brock, Mayor Pro Tern Burroughs, Council Members Fulton, McNeill,
Montgomery, Phillips, Redmon
ABSENT: None
1. The Council received a report, held a discussion, and gave staff direction regarding a
multi-year financial forecast, municipal operations funding, budget process, and capital items.
Kathy DuBose, Assistant City Manager of Fiscal and Municipal Services, reviewed the financial
makeup of the City. She stated that the City's budget was made up of Utilities, Debt Service,
General Fund, Internal Services (captures the cost of services provided), and Other (represents
grants and contributions).
DuBose stated that the General Fund was made up of the following Major Departments that
serviced the community - Police, Fire, Streets/Traffic/Engineering, Parks, and Library. These
made up 75% of the General Fund budget. She reviewed the appraisal roll comparisons for the
past several years. Property tax was 21% of the General Fund budget. Sales tax was about 27%
of the General Fund budget.
DuBose stated that Assumptions were based on Revenues, Expenditures, and the Capital
Improvement Program. Revenues included: No property tax rate increase. Sales Tax increase at
3%. Franchises - Electric, Water and Wastewater Utilities based on rate revenue. External
Utilities based on 5% growth. Fines, Fees, Licenses, Permits, and Miscellaneous Revenues
increases ranged from 2% to 5%. Return on Investment based on Utility Revenue projections.
Expenditures included: No personal services increases for next fiscal year and 4% for years 2-5.
Health insurance increase at 30% for next fiscal year and 20% for years 2-5. Electric, Water,
Wastewater, and Solid Waste based on Utilities projections. Lone Star Gas increase at 5%. No
new positions except for Capital Improvement Program (CIP) related.
Ross Chadwick, Fire Chief, reviewed some of the changes proposed in the Capital Improvement
Program. He stated that based on the low call activity in the area and unknown alignment of the
connector road between 1-35 and 377, construction of Fire Station 7 would be postponed until
2006. The hiring of 15 firefighters scheduled for 2003 would be postponed until 2005.
Chadwick stated that the City would provide training for a Citizen Emergency Response Team
for the southwest portion of the city and an interlocal agreement with the Argyle Fire
Department for ambulance services.
Chadwick stated that the Fire Department would purchase land for a fire training facility and
design the facility in 2003. Construction of the facility would be scheduled for 2004. A training
chief would be hired in 2003. A medic for Station 7 would be hired after 2007.
City of Denton City Council Minutes
February 11, 2003
Page 2
Mayor Brock requested a report on the ISO rating.
DuBose stated that renovations to the Emily Fowler Library would be completed in 2005. Staff
from Emily Fowler would be moved to the North Branch Library while Emily Fowler was being
renovated. No new employees would need to be hired for the North Branch Library next fiscal
year.
DuBose stated that for ad valorem growth they tried to maintain 9% over the forecast.
that the budget priorities established during the budget process last year were
development, street maintenance, public safety training, and compensation-year 1.
She stated
economic
Jim Coulter, Director of Water Utilities, briefed the Council on Street Maintenance. He stated
that the current policy of deferring maintenance could cost the City $11-12 million per year. He
stated that at the current street maintenance budget, streets would deteriorate faster than they
could be maintained. An increase of materials budget for streets would reduce the cost of
deferred maintenance.
DuBose reviewed the unfunded needs: street maintenance, no compensation for year 1, and new
positions - related to growth.
Council Member McNeill stated that he was not comfortable with not adding any positions for
police and fire as the city grew.
Council Member Phillips felt there was a need to do an overall management study, take a look at
all departments and the alignment of them.
Howard Martin, Assistant City Manager of Utilities, reviewed the impact fee/rate options for
water utilities. He stated that the Public Utilities Board recommended utilizing the calculated
credit methodology. With this option, there would be a small rate increase in 2005. Martin
stated that staff recommended using the calculated credit methodology for meters over 3". He
stated that PUB recommended two separate impact fee zones for wastewater to include
Hickory/Pecan Creek and Clear Creek. With this option there would be a small rate increase in
2007.
Mayor Brock stated that previous councils, when looking at new growth, had expressed their
desire to not penalize existing residents with raised taxes but look at possible impact fees for new
residents to pay.
Martin reviewed the Solid Waste rate projections.
Mike Conduff, City Manager, recapped budget concerns for the Council: Streets were a priority
item. If funding could be found, the Council was still interested in a management study. Salary
increases for employees was still a concern. The Council also expressed concern about being the
most expensive city in the area for impact fees.
City of Demon City Council Minutes
February 11, 2003
Page 3
With no further business, the meeting was adjourned at 6:45 p.m.
EUL1NEBROCK
MAYOR
CITY OFDENTON, TEXAS
JANE RICHARDSON
ASSISTANT CITY SECRETARY
CITY OF DENTON, TEXAS