August 04, 2016 Minutes
CITY OF DENTON CITY COUNCIL MINUTES
August 4, 2016
After determining that a quorum was present, the City Council convened in a Work Session on
Thursday, August 4, 2016 at 8:30 a.m. in the Council Work Session Room at City Hall.
PRESENT: Council Member Wazny, Council Member Briggs, Council Member Hawkins,
Council Member Gregory, Council Member Bagheri, and Mayor Watts.
ABSENT: Mayor Pro Tem Roden
1. Work Session Reports
A. ID 16-944 Receive a report; hold a discussion, and give staff direction regarding the FY
2016-17 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year
Financial Forecast.
Chuck Springer, Director of Finance, presented the information on the city budget. He noted that
the Strategic Plan and Key Focus Areas were listed. Staff was proposing strategic outcomes, key
action steps and key performance outcomes in the Strategic Plan. The Budgetary Priorities were
listed along with the assumptions for the General Fund that included assessed value increases, debt
service portion of the tax rate, maintenance and operation portion of the tax rate, sales, tax,
franchise fees, and fund balance.
Council discussed the street maintenance fund; fund balance in terms of resiliency reserve; and the
fund balance as it related to bond ratings.
Springer continued with property values and tax rate and presented the proposed tax rate, effective
tax rate, rollback tax rate and certified taxable value. The appraised values for the past five years
were noted. The Sales Tax since 2007-08 was shown. He also noted the vacancy
management/salary savings program which added flexibility to deal with any economic downfalls.
The compensation and benefits proposals were presented.
Council discussed the concerns regarding the merit increase and the equity adjustments.
Springer continued with General Fund Supplemental Packages and reviewed the packages per
department with the associated net cost.
Council discussed the wave pool operations in terms of added admissions and the possibility of
contracting out the concession stand operation. Other areas of discussion included consideration
of a request from the Fire Department for breathing apparatus; a request from the Police
Department for fencing behind the Police Department parking lot; maintaining the Parks
Foundation Executive Director funding at the current level; whether part of a salary for an Internal
Auditor could be paid from other funds per cost allocation; and actual dollars available for
supplemental packages.
Additional requests from Council included solid fencing for safety fencing at the Police
Department; the cost to close the street going through the back parking lot of the Police
Department; funding for a study for preserving the cemeteries; Fire Department breathing
apparatus; emergency services grant funding; and consideration of using funds from the
Downtown TIF for downtown sidewalk improvements.
City of Denton City Council Minutes
August 4, 2016
Page 2
Springer continued with Special Revenue Fund Supplemental Packages, noting the request, fund
to be used and net cost. These were packages that would be funded from special funds as opposed
to the General Fund. General Fund Projections were noted with the 10 year franchise fees transition
noted, projections for the Street Improvement Fund with a 10 year franchise fee transition; and
traffic signal aging summary.
Council continued their discussion on how to allocate funding for traffic signal replacement.
Springer noted the Tax Increment Reinvestment Zones and associated funding.
Council discussed whether to take funding for downtown sidewalks from the Downtown TIRZ;
whether to take all or some of the cost from the TIRZ; a suggestion to keep funding from the
Traffic Safety Fund and funds from General Fund and take out of the TIRZ; the city liability of
defective sidewalks; a discussion of the Chamber of Commerce CVB and bringing services in-
house.
Tony Puente, Assistant Director of Finance, presented the monthly rate impact for the average
residential customer with the proposed increases. He detailed the Water Utility Fund proposed
budget, the Wastewater Utility Fund, and Electric Utility Fund. He also noted the utility reserve
balance changes.
Discussion with Council was whether the proposed rate increases were to be used to increase the
utility reserve balance and reasoning for a larger increase in the water rates.
Puente continued with the Airport Fund and proposed changes. The debt service associated with
the Airport was planned to be paid from the General Debt Service fund and was projected to
maintain a positive fund balance for the next five years.
Council discussed concern that the General Fund would be paying for an enterprise fund due to
declining revenues in the gas well royalties.
Puente continued with the 2016-17 Capital Program which was presented in terms of total new
funding including utilities; and the General Government proposed debt.
Council requested staff prepare a new spread sheet without the 5% increase in water.
Springer detailed position additions for FY 2016-17 which included 73.6 position. Next steps were
noted.
Council Member Bagheri left the meeting.
Barbara Ross, Community Development Division Manager, presented information on the
Emergency Solutions Grant that was not funded this year.
Dani Shaw, Human Services Coordinator, presented the information on the amount of money that
would be lost due to the program not being funded.
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August 4, 2016
Page 3
Mayor Watts suggested a one-time funding of $100,000 to reinstate the funding. This would be a
one-time funding only from the Fund Balance and other municipalities would be asked to assist
with the balance of the missing funds.
Council Member Gregory asked what the City could do to correct the situation in the future and
questioned if this would be a permanent problem.
Shaw stated that more permanent housing for the homeless was needed for the grant approval. The
City had good temporary solutions but no permanent solutions for housing.
Council Member Wazny felt that the City needed to step up to make up the difference as a number
of very important entities would not be receiving funding this year. She suggested reducing the
number of traffic signals to be funded and include the $340,000 in the funding for the agencies.
The extra money could be reinstated if other governmental entities contributed.
Council Member Hawkins and Briggs were also in favor of using the funds.
Council Member Gregory stated that he liked starting with $100,000 and encourage other entities
to step up and assist with the funding.
Mayor Watts liked the incremental funding and see if assistance would be offered from other
entities. He noted that if the issue of the lack of housing were not addressed, there would still be
the same issue next year and the City would not be able to fund it.
Council direction was to have staff look at possible funding sources for the money and look at long
term funding issues. $200,000 would be taken from the Fund Balance and staff would provide
information on how the funds would be used.
2. Concluding Items
A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City
Council or the public with specific factual information or recitation of policy, or accept a
proposal to place the matter on the agenda for an upcoming meeting AND Under Section
551.0415 of the Texas Open Meetings Act, provide reports about items of community
interest regarding which no action will be taken, to include: expressions of thanks,
congratulations, or condolence; information regarding holiday schedules; an honorary or
salutary recognition of a public official, public employee, or other citizen; a reminder about
an upcoming event organized or sponsored by the governing body; information regarding a
social, ceremonial, or community event organized or sponsored by an entity other than the
governing body that was attended or is scheduled to be attended by a member of the
governing body or an official or employee of the municipality; or an announcement involving
an imminent threat to the public health and safety of people in the municipality that has arisen
after the posting of the agenda.
Council Member Briggs requested a report on the Police Department Training Center parking lot
being designated only for police parking.
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August 4, 2016
Page 4
Following the completion of the Work Session, the City Council convened in a Closed Meeting to
consider the specific item listed below under the Closed Meeting section of this agenda.
1. Closed Meeting:
A. ID 16-946 Certain Public Power Utilities: Competitive Matters --- Under Texas Government
Code, Section 551.086. Receive competitive public power competitive information and
financial information from staff regarding the proposed FY 2016-2017 operating budget for
Denton Municipal Electric ("DME") including without limitation, proposed rates for DME
for FY 2016-2017, expected revenues, expenses, commodity volumes, and financial
commitments of DME; discuss, deliberate and provide staff with direction.
With no further business, the meeting reconvened in Open Session and adjourned at 12:50 p.m.
________________________________
CHRIS WATTS
MAYOR
CITY OF DENTON, TEXAS
________________________________
JENNIFER WALTERS
CITY SECRETARY
CITY OF DENTON, TEXAS