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HomeMy WebLinkAboutCC Minutes 2005-12-12 Special, Work Session 12/12/05 2408 STATE OF TEXAS )( CITY OF FRIENDSWOOD )( COUNTIES OF GALVESTON/HARRIS )( DECEMBER 12, 2005 )( MINUTES OF A SPECIAL MEETING OF THE FRIENDSWOOD CITY COUNCIL THAT WAS HELD ON MONDAY, DECEMBER 12, 2005, AT 5:00 PM AT THE FRIENDSWOOD CHAMBER OF COMMERCE, CONFERENCE ROOM, 1100 S. FRIENDSWOOD DRIVE, FRIENDSWOOD, TEXAS, WITH THE FOLLOWING PRESENT CONSTITUTING A QUORUM: MAYOR KIMBALL BRIZENDINE MAYOR PRO-TEM DAVID SMITH COUNCILMEMBER LAURA EWING COUNCILMEMBER JOHN LECOUR COUNCILMEMBER TRACY GOZA COUNCILMEMBER CHRIS PEDEN (arr. 5:04 PM) COUNCILMEMBER MEL MEASELES CITY ATTORNEY JOHN OLSON CITY MANAGER RON COX CITY SECRETARY DELORIS MCKENZIE Mayor Brizendine called the meeting to order. 5:00 PM —WORK SESSION Discussion was held regarding the Long-Range Financial Plan. Roger Roecker, Director of Administrative Services, gave a PowerPoint presentation regarding expenditures and explained Property Tax Rates in the future with the reduction in the tax rate by$0.199 from FY2005 to FY2020, explained the ratio of portion of rate to operations versus debt drops to about 75:25 and shifts emphasis slightly to Capital Improvement Projects (CIP), is still well within acceptable standards. Stated there are many variables in calculation, the critical drivers of effective rate estimate is growth in tax base, valuation growth versus new improvements, longer planning term with more room for error, effective tax rate calculation is heavily dependent on the prior year's rate, maintaining a stable approach to Operation and Maintenance (O&M) and Interest and Sinking (I&S) rates will be critical. Mayor Brizendine stated improving the tax base is mandatory and anything that can be done to help Economic Development Coordinator Karen Capps in that area should be done and thinking outside the box will help in this critical area. Councilmember Smith asked if the City will have to borrow more money in the future to maintain the services if the City continues to cut taxes. Roger Roecker stated that it will and it is not a balanced budget doing it that way, and he does not like the thought of planning to borrow money in the future since rates will be higher. Roger Roecker continued his explanation regarding the affect on operations and stated the base includes inflation growth on current costs, growth shows expected supplemental requests based on maintaining service levels against new demand and one time costs are averaged to equalize. Becky Grimm with Government Resources Association gave an explanation of supplemental requests, existing and new services levels and programs. Councilmember LeCour asked average growth of income over the tax reduction. Roger Roecker said there is no dollar increase. Councilmember Peden pointed out the forecasted revenues and expenditures figures are on the spreadsheet handout, and asked for detailed explanation on Police Department's (PD) average ongoing baseline increase in expenditures and Becky Grimm showed the detailed report and Police Chief Bob Wieners offered further explanation regarding software upgrades, equipment upgrades, Phase II prediction for the Public Safety Building (PSB), etc., and stated some of the items may not be necessary but will not know until the future and will make necessary amendments for the next Long-Range Plan (LRP). Mayor Brizendine stated he would like to discuss the expenditure side in detail in small achievable tasks first before the big picture is discussed. Councilmember Ewing stated she likes seeing the big picture and then break it down later. 12/12/05 2409 Councilmember Smith stated he uses his family budget as an example and likes hearing the baselines. Councilmember Measeles stated he would like to continue with the PowerPoint and hear the big picture. Roger Roecker continued his presentation and made concluding remarks regarding next steps. Staff is trying to predict the future for the next 15 years and is making their best effort, maybe should narrow to a 5-year focus. Karen Capps is doing a job with the tools she has been given to get commercial businesses to come to Friendswood. Karen Capps stated that sales tax is hard to estimate, using West Ranch/Friendswood Development as an example, stated she was not sure if it would come online 3-5-10 years down the road. Councilmember Peden stated he likes seeing this information to learn what the numbers mean. The ultimate use of the document is where the City can make "what if" assumptions what will the City have to go out and get to help with the tax rate reduction, useful to see what effect will a tax rate reduction have on the baseline figures. Councilmember Goza stated he would like to discuss with Staff some of the details on the LRP. Mayor Brizendine stated his questions were more global, revenue growth is so low and does not understand why. Councilmember Smith stated that the figures from Staff are conservative and is inherent with coming up with these numbers. Mayor Brizendine stated that the City needs to focus and enhance commercial development. Councilmember LeCour stated the numbers were full of uncertainty and it is almost pointless to discuss it. It is a good LRP, but is too unpredictable. Council and Staff need to prioritize the expenditures. Needs more knowledge, focus on a five-year plan with variables. Mayor Brizendine stated Councilneeds to focus on the five-year plan only. Councilmember Peden stated this is a planning document and not a budget document. Councilmember Ewing stated the City needs to stay with a five-year focus, does not want to get into specifics and second guess Staff, but would like more understanding of what the parameters are and wiggle room. Councilmember Measeles stated for a planning document the City needs to stay global. Mayor Brizendine stated they want to narrow the focus and go from 2020 to 2010 to do that. City Manager Ron Cox clarified what Council needs Staff to do to narrow the focus, such as assumptions on tax rate, expenditure and revenues. Roger Roecker stated Staff will be able to come up with a more realistic and accurate picture with a five-year plan. Councilmember Peden stated this is a planning document and not a mandate to budget, etc. Discussion was held regarding Proposed Budget Amendments. Councilmember Peden stated in the initial discussion he wanted an opportunity to speak outside of the Council Chambers, would like to lower Council's travel budget by $25,000 since they do not use it. Mayor Brizendine stated he is for amending the budget. Councilmember Measeles stated the Texas Municipal League (TML) budget is predicting that all will attend. Mayor Brizendine stated if they need the money in the future and it is not budgeted, he is sure they can come up with the money. Councilmember Smith asked if the travel budget needs to be cut further. Councilmember Peden stated if there is some disaster in the future, they could do a budget amendment to get the money for the Technology Fund. Roger Roecker, Director of Administrative Services stated smaller Information Technology (IT) items have gone towards this budget, goes through IT Committee, the last few years it has been lower, Staff decided this year to leave the historical number, this year already there has been $200,000 in requests. City Manager Ron Cox stated some of the reduced amount coming out of the budget in the recent past was because of grants and homeland security funds that were received. Councilmember Peden stated historically $75,000 was spent in the past and feels that if the request is for $100,000, Council needs to have an itemized list of what that $100,000 will buy. Ron Cox stated in the past this is how it has been done in the past and what past Council had required. If Council wants Staff to do it differently, then they will make those changes. Councilmember Ewing stated this is hard to predict because new software comes out every day, technology is fluid and feels this budget needs to stay the same. Councilmember Peden stated since most of the major projects are done, why does the City need a Project Manager position. Why is the City not doing this on a project basis or a contract basis? Projects were under budget when the departments managed their own Capital Projects. Interim Community Development Director Dan Johnson stated his department is understaffed and they have been behind the curve for a number of years. If the City wants to keep going with the Capital Improvement Program (CIP), it needs this position. The City will spend more money going outside to hire someone and paying hourly. Mayor Brizendine asked Mr. Johnson to clarify why they would hire instead of pay hourly. Skipper Jones, Capital Projects Coordinator, clarified 12/12/05 2410 that Pearland is the model, and there are not enough people to cover all the bases. The City pays a tremendous amount of money when the City uses a Project Manager through the consultant. Ron Cox stated the workload has increased and there needs to be more staff. The City has outsourced in the past and the City has to manage those people and it is a duplication of effort. The City wants someone to manage internal work as well as outside inspections. Councilmember Goza asked how much of the Public Safety Building (PSB) will this person be managing. Mr. Johnson said 75%, and clarified with Skipper Jones that this person will manage engineering and construction side. Mayor Brizendine asked if Councilmember Peden wants to do away with this position or do it on a contracting basis. Councilmember Peden stated again that big projects were in the past and does not see any reason why they need someone now. Councilmember Smith stated Councilmember Peden has stated that if you need the money in the future ask for it, CDD is asking for it, so give it to them. Mayor Brizendine stated this is close to micro managing more than any other issue presented. Councilmember Peden stated no discussion has been made that this position will improve things, only increased workload argument. According to what he sees in CIP reports he sees no reason. Councilmember Ewing stated that this is comparing apples and oranges, they are coming to the table with a strong need to have another person to have in the field. There may be only one big project going on but there is West Ranch or Whitcomb development and others that will need inspection. Dan Johnson stated there are not less projects, but there are more capital projects over the next couple of years. Councilmember Peden stated he does not want to micro manage and this did not add up to him in the budget process. He appreciates the clarification and it fills in the gaps. When he goes out in the public he is answerable to the public and needed to take ownership of what he voted on and was not comfortable with the process. Skipper Jones stated smaller projects do not mean less work, and gave an example of this situation. Councilmember LeCour stated he wanted clarification on how this person would be used. Councilmember Peden stated he would like to amend to defer the Renwick Park lighting to the following year. The poles survived Hurricane Rita and could be deferred to the next year and get another year out of these poles, agrees with replacing them with steel poles, if there is a safety concern, they need to be taken out now. If it is irresponsible to defer it, then he would like to move forward. Jon Branson, Director of Community Services, stated an investigation has been made of the rest of the poles and they are in bad shape. Can they withstand another year? The bid is opening tomorrow and would like to put it before Council next Monday night, and feels they are very necessary. Little League standards require concrete or steel poles and no wood poles. The price difference is $3000-$5000 per pole, and they are going from 8 poles per field to 4 per field. Ron Cox stated the City went to concrete poles only several years ago to get away from wood poles, stated this item should be put on the agenda for Monday night for a budget amendment or not award the bid. Councilmember Peden stated since fuel price has gone down he would like to withdraw this request. Roger Roecker stated the City may have to come back and revisit in 6 months. Mayor Brizendine stated it was not the intention to put Staff on the defensive but to clarify. A motion was made and approved to adjourn at 7:43 PM. � � � L �f.i L Mayor Kimball W. Brizendine Attest: . � De oris McKenzie, TRMC City Secretary � �R'ENO,p � � � O r o � v * * � �qrF � �+�