August 02, 2018 Minutes
CITY OF DENTON CITY COUNCIL MINUTES
August 2, 2018
After determining that a quorum was present, the City Council convened in a Work Session on
Thursday, August 2, 2018 at 8:30 a.m. in the Council Work Session Room at City Hall.
PRESENT: Council Member Hudspeth, Council Member Briggs, Council Member Duff, Mayor
Pro Tem Ryan, Council Member Meltzer, and Mayor Watts.
ABSENT: Council Member Armintor
1. Work Session Reports
A. ID 18-1223 Receive a report, hold a discussion, and receive departmental presentations in
preparation for the FY 2018-19 Proposed Budget, Capital Improvement Program, and Five
Year Financial Forecast.
Umesh Dalal, City Auditor, presented the Internal Audit budget. He reviewed performance
measures, accomplishments, budget emphasis, and budget highlights.
Council Member Armintor arrived at the meeting.
Nick Vincent, Utilities Business Manager, presented the financial portion of the Solid Waste
proposed budget. He noted Solid Waste assumptions, cost containment, future risks and mitigation
strategies, 5 year forecast, budget highlights, next steps and proposed rates.
Ethan Cox, Director of Solid Waste, presented the departmental presentation regarding Solid
Waste. He noted goals and accomplishments, budget emphasis, process improvements, cost
containment, and 5 year capital plan.
B. ID 18-1171 Receive a report, hold a discussion, and give staff direction regarding the FY
2018-19 City Manager’s Proposed Budget, Capital Improvement Program, and Five-Year
Financial Forecast.
Tony Puente, Director of Finance, presented the proposed 2018-19 budget information. Major
portions of the presentation included the General Fund projection assumptions, General Fund
forecast and budget, debt tax rate impact, special revenue and internal service funds, Enterprise
funds, capital program, total budget and next steps. Assumptions for the General Fund included
assessed value increased, debt service portion of tax rate, M & O portion of tax rate, sales tax and
franchise fees. Vacancy management/salary savings information was provided in terms of amount
of savings and reasoning for the vacancy management program. Proposed compensation and
benefits were noted for merit increases, health insurance funding, and retirement funding. Figures
concerning property values and the effective tax rate, calculation of the effective tax rate, tax rate
history, market values, appraised values, sales tax by prior fiscal years, and 5 year growth rate data
were reviewed.
Council discussed the Truth-In-Taxation calculation versus the City calculation of the effective
tax rate and differences in tax rate with the added tax ceiling/freeze now included.
City of Denton City Council Minutes
August 2, 2018
Page 2
Puente next provided information on the General Fund proposed revenues, proposed expenditures,
and proposed expenditures by function along with the General Fund forecast. Supplemental
funding requests recommended for the budget and those currently unfunded were noted.
Council discussion included:
The thoroughfare plan was unfunded but would the cost change in light of the fact that the
County had just completed their plan
The Animal Shelter was understaffed and whether that was addressed in the supplemental
packages
Status of the ADA Master Plan
Whether the thoroughfare plan/mobility plan could be combined
If the red light camera contract was not renewed whether the excess funds could be used for
traffic signals
What was the reason for the increase in homestead taxable values
Consider a study or monitor Civil Service as to whether the added value over market rate
affected the City’s ability to track competitive employees
Include the funding for mobility and the thoroughfare plan in the proposed budget
Puente presented Capital Improvement funding requests information in terms of Phases 1 and 2 as
well as the debt tax rate impact for the Phase 1 projects.
Council discussed:
Whether the Phase 1 capital improvement funding requests figures reflected projects that were
complete and ready to start
Bonnie Brae future project phases
Information concerning the Parks capital improvements Phase 2 requests and ways to look for
funding for those projects in the proposed budget
Costs involved for Fire Station 8 in Phase 2 and the possibility of obtaining the engine before
the station was built
Consider funding for Parks projects in Phase 2 to be taken from the Fund Balance
Puente provided information on Special Revenue & Internal Service funds. Those funds included
the Traffic Safety Fund.
Council discussed the reasoning for a city-wide speed study and replacement of traffic signals due
to the age of the signals.
Puente noted funding for the Tax Increment Reinvestment Zones #1 and #2 and the appraised
values for the fund.
Council discussed the new value figures which were only on new construction and not renovations
of old buildings. They requested information on the breakdown of the old value compared to new
value for the appraisals.
Other special revenue funds were discussed by Puente in terms of dollar amounts in the funds and
any associated proposed uses for those funds. Internal Service funds were also noted as well as the
supplemental funding requests on those funds.
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August 2, 2018
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Council discussed:
The use of CVS as the primary pharmacy provider
Provide a comparison with other pharmacies used
The Heath Insurance fund included expenses for the Health Clinic and a question on when that
contract was expiring
Puente next discussed the Enterprise funds which were comprised of the Airport fund, Electric
fund, Water fund, Wastewater fund, and Drainage. The monthly rate impact for the average
residential customer for the utility funds was noted. There would be no rate changes for the Water
fund and a 5% rate decrease in the Wastewater fund. The 2018-19 Capital Program for total new
funding and General Government proposed debt were noted.
Council discussion included:
Reasoning why customers were charged more for guaranteed same day service
Reasoning for reconnection fees when there were so many remote meters
Consideration of a 5% of late bill for the charge for late fees instead of a set rate
Review the 1% past due charge on account balances
Present additional information on the DEC funding and associated renewable sources that also
assisted in that funding, including costal wind in the information
Puente concluded with the next steps in the budget process covering the next several months.
Council asked for a more detailed listing of miscellaneous categories and fees on the funding
graphic presentation and questioned the downward trend of the franchise fees.
C. ID 18-1146 Receive a report, hold a discussion, and provide staff direction on the design and
construction of the new tennis center.
Gary Packan, Director of Parks and Recreation, provided the staff report on the new tennis center.
Project goals included replacing the existing tennis center, providing programs for various ages
and abilities, attracting sports tourism, stimulating economic development and enhancing the city
identity and community pride. He noted the aspect/orientation of the location for the new center,
design guidance with USTA, three various design scenarios for the facilities, funding, and project
timeline.
Council discussion included:
Pros and cons of sharing with limited number of courts but provide space for future expansion
Purpose of a pro shop
Cost comparison of resurfacing existing courts instead of building a new facility
Whether there were court fees to use the facility or free play
Staffing for the pro shop
Whether an environmental study for drainage from the proposed courts had been done
Amount of tournaments to help finance the debt
There was a need to balance the interest of residents to use the courts in addition to holding
tournaments.
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August 2, 2018
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Council Member Ryan left the meeting.
Following the completion of the Work Session, the City Council convened in a Special Called
Meeting to consider the following items:
1.ITEMS FOR INDIVIDUAL CONSIDERATION
Resolution No. 18-1172
A. ID 18-1172 Consider approval of a resolution of the City Council of the City of
Denton, Texas placing a proposal on the September 18, 2018, City Council public
meeting agenda to adopt a 2018 Tax Rate that will not exceed the lower of the rollback
rate or the effective tax rate; calling two public hearings on a tax increase to be held
on August 14, 2018, and September 11, 2018 and calling a budget public hearing on
the Fiscal Year 2018-2019 Annual Program of Services of the City of Denton to be
held on September 11, 2018; requiring publication of notices of the public hearings
in accordance with the law; requiring the posting of the notices of the public hearings
on the City’s Internet website; requiring the posting of the notices on the City’s public
access channel; and providing an effective date.
Tony Puente, Director of Finance, presented the staff report on the proposed tax rate. The proposal
was to set the maximum proposed rate at the current tax rate using the State calculations for the
effective and rollback rates. The required publications and two public hearings on the tax rate
would be properly noticed.
Council Member Meltzer motioned, Council Member Hudspeth seconded to approve the
resolution. On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye",
Council Member Duff "aye", Council Member Meltzer "aye", Council Member Armintor "aye"
and Mayor Watts "aye". Motion carried unanimously.
Ordinance No. 18-1236
B. ID 18-1236 Consider adoption of an ordinance of the City of Denton, Texas,
amending Ordinance No.2018-004, prescribing the number of positions in each
classification of Police Officer; providing a repealer clause; and declaring an effective
date.
City Manager Hileman stated that Chapter 143 required adoption of an ordinance reflecting the
exact number of police positions in the current budget. The proposed ordinance reflected the new
structure of the Police Department with one assistant chief and two deputy chiefs. Bobby Smith
had been appointed the Assistant Chief.
Council Member Briggs motioned, Council Member Meltzer seconded to adopt the ordinance. On
roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council Member
Duff "aye", Council Member Meltzer "aye", Council Member Armintor "aye" and Mayor Watts
"aye". Motion carried unanimously.
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August 2, 2018
Page 5
Resolution No. 18-1211
C. ID 18-1211 Consider approval of a resolution confirming the appointment by the City
Manager of Bobby Smith as interim Police Chief for the City of Denton Police
Department, and declaring an effective date.
City Manager Hileman stated that the proposed ordinance was required under Chapter 143
whereby the governing body was required to confirm the appointment of a police chief by the City
Manager. He was recommending Bobby Smith be appointed Interim Police Chief.
Council Member Hudspeth motioned, Council Member Briggs seconded to approve the resolution.
On roll call vote, Council Member Hudspeth "aye", Council Member Briggs "aye", Council
Member Duff "aye", Council Member Meltzer "aye", Council Member Armintor "aye" and Mayor
Watts "aye". Motion carried unanimously.
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
Discussion on whether the Public Art Committee should be included in the Ethics ordinance
or have a separate procedure for that board
Make sure the cross walks were properly marked at the schools as schools were about to start
Staff report on consultants and the amount spent in 2017 to date
Council Member Hudspeth
Email on how far out the marketing piece/branding piece was for facilities
Council Member Armintor
Staff report on ways to proposed new agenda items
City of Denton City Council Minutes
August 2, 2018
Page 6
With no further business, the meeting was adjourned at 3:00 p.m.
________________________________
CHRIS WATTS
MAYOR
CITY OF DENTON, TEXAS
________________________________
JENNIFER WALTERS
CITY SECRETARY
CITY OF DENTON, TEXAS