October 17, 2011 Minutes
CITY OF DENTON CITY COUNCIL MINUTES
October 17, 2011
After determining that a quorum was present, the City Council convened in Work Session on
Monday, October 17, 2011 at 9:00 a.m. in the City Council Work Session Room.
PRESENT: Council Member King, Council Member Roden, Council Member Engelbrecht,
Mayor Burroughs, Mayor Pro Tem Kamp
ABSENT: Council Member Gregory and Council Member Watts
1. Receive a report and hold a discussion regarding the 111th Congress, 2nd Session and
outlook for 112th Congress, 1st Session, to include Budget Issues, the Federal Debt
Ceiling issue, Super Committee of Congress concerning deficit reduction, President's
jobs plan, Surface Transportation, Aviation, Infrastructure Bank, Telecommunications,
Cap & Trade/Climate Legislation, Hotel Occupancy Tax, HUD/DOT Sustainable
Development, and other topics impacting local government.
Ralph Garboushian, Capital Edge, presented a federal legislative update. Topics of discussion
included budget issues in terms of debt ceiling deal, Super Committee and deficit reduction,
President’s jobs plan, and outlook for FY 2010 appropriations and core local government
programs.
Council Member Watts arrived at the meeting.
Garboushian stated that the Super Committee would be looking at a deficit reduction for the next
decade with $1.5 trillion in budget cuts in the next ten years. The FY 2012 discretionary
spending was of particular concern to cities which would be looking at cuts in CDBG funding on
the Senate side but a slight increase on the House side. Local law enforcement assistance and
local homeland security grants were also looking at cuts in funding. If those programs were cut,
it would place an administrative burden on cities to run those programs.
Mayor Pro Tem Kamp questioned what that would mean for Denton if the administrative fee was
reduced from 20% to 10% as some of those funds were used for staff.
Barbara Ross, Community Development Administrator, stated that this year the administrative
cap for CDBG was $197,000 and of that $189,000 was used for staff salaries. In the HOME
program the cap was 10% which was all used for staff salaries. A large funding cut would
require a cut in at least one staff position. Currently two positions were funded through the
General Fund. Staff could always be paid from those programs but then the funding for assisting
households would be less.
Mayor Burroughs asked if the administrative costs paid by CDBG and HOME funds in Denton
were standard among other cities.
Ross stated that she did not know of any comparisons with other communities. It depended on
the size of community and what that community wanted to administer.
Mayor Burroughs asked how much of the inspections were discretionary or were all mandated by
the programs.
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October 17, 2011
Page 2
Ross stated that they were mandated in order to show that there had been involvement in the
program and were drawing federal funds for a project which was allowed.
Garboushian stated that one proposal for homeland security was to place all state and local grant
programs in one category, fund $1 billion and have the Secretary of Homeland Security
determine how best to spend the money. In that scenario, a number of communities would be cut
from the program. The State Homeland Security grant was looking at a 33% cut in the Senate
and House. He indicated that there was a focus on jobs in Washington with the American Jobs
Act. He detailed the background of the President's plan to Congress. Key components included
infrastructure, aid to State and local governments, tax cuts, unemployment and offsets. The
Republicans had proposed their own jobs plan. Key elements included spending reform, tax
reform, regulations reform, and domestic energy job promotion.
City Manager Campbell asked about tax exemption on municipal bonds.
Garboushian stated that he had only seen a draft but the President had submitted a proposal for
deficit reduction with the thought to eliminate tax exemption for municipal bonds. That would
be very hard on cities. Another element might be to force every city to be involved in social
security.
Council Member Roden asked if and when some version of a job bills passed, what would be the
city's process to receive funding.
John Cabrales, Public Information and Intergovernmental Affairs Officer, stated that in the past,
Capital Edge notified the city when funding was available. Eligible departments were then
contacted to submit for funding. Staff worked with the Budget Office as some grants required a
match from the city. There were various staff members in place in various departments who
were knowledgeable about the grants.
Garboushian continued with transpiration issues which included surface transportation, aviation,
and infrastructure bank. Surface transportation was currently on a short term extension of the
Federal Highway Transportation program. He did not think there would be an opportunity for
individual projects included in the bills and no earmarks for the bill. One concern was the
Transportation Enhancement Program and the Safe Routes to School Programs which might be
in jeopardy. Reserving those funds might be difficult but local Metropolitan Planning
Organizations would still receive some funding.
Council Member Watts stated that as a member of the TMPA Board he had seen a lot in the
news about rail costs for transportation and asked if there any kind of status on that issue.
Garboushian stated that railroads were a large lobby presence in Washington but as more and
more people sent a message out regarding the costs, the Transportation Safety Board would have
to look closer at it. He presented a handout comparing the President’s, Republican and
Democratic proposals for the National Infrastructure Bank
In the area of Hotel Occupancy tax Garboushian noted an effort by on-line travel to preempt the
ability of cities to collect hotel occupancy taxes. Another issue of note dealt with post offices.
One proposal suggested was to close some post offices across the county while another proposal
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October 17, 2011
Page 3
was to close processing centers such as the one in Dallas. No Denton facility was suggested at
this point.
Garboushian continued with a review of HUD/DOT Sustainable Development, Cap &
Trade/Climate Legislation and telecommunications. Council discussed those issues in terms of
what it meant for Denton.
With no further business, the meeting was adjourned at 10:25 a.m.
____________________________________
MARK A. BURROUGHS
MAYOR
CITY OF DENTON, TEXAS
____________________________________
JENNIFER WALTERS
CITY SECRETARY
CITY OF DENTON, TEXAS