HomeMy WebLinkAboutCC Minutes 2010-08-09 Special 08/09/2010 3384
STATE OF TEXAS )(
CITY OF FRIENDSWOOD )(
COUNTIES OF GALVESTON/HARRIS )(
AUGUST 09, 2010 )(
MINUTES OF A SPECIAL MEETING OF THE FRIENDSWOOD CITY COUNCIL THAT WAS HELD ON
MONDAY, AUGUST 09, 2010, AT 6:30 PM AT FRIENDSWOOD PUBLIC LIBRARY, 416 S.
FRIENDSWOOD, TEXAS, REGARDING THE ITEMS OF BUSINESS ACCORDING TO THE AGENDA
LISTED BELOW AND WITH THE FOLLOWING PRESENT CONSTITUTING A QUORUM:
MAYOR DAVID SMITH
MAYOR PRO-TEM JIM HILL
COUNCILMEMBER MICHAEL BARKER
COUNCILMEMBER PAT MCGINNIS
COUNCILMEMBER BILL HOLBERT
COUNCILMEMBER JIM BARR
COUNCILMEMBER DEIRDRE BROWN
CITY MANAGER ROGER ROECKER
CITY SECRETARY MELINDA WELSH
Mayor Smith called the meeting to order at 6:40 PM.
SPECIAL SESSION
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A discussion was held regarding the proposed FY2010-2011, General Operating Budget for the City of
Friendswood.
City Manager Roger Roecker thanked everyone for the retreat where the Multi-Year Financial Plan was
discussed, was a collaborative effort that made a good start to the budget process. He noted that Staff
presented a budget based on the effective tax rate, was a historic year from the grant acquisition
standpoint, with nearly five million dollars in grants, take that into consideration when reviewing the new
budget, no employee cost of living adjustment or merit increase in the budget, includes a $127,000
reduction in overall departmental budgets, with no allowance for additional personnel, another budget
meeting will be scheduled before the next regular meeting of August 16, 2010.
Administrative Services Director Cindy Edge presented a PowerPoint presentation of key budget points,
functionality, and the City's Statement of Core Values which is trust, respect, accountability, and quality
(TRAQ). The estimated effective tax rate is based on preliminary values, and Harris County is not yet
included. The proposed budget includes a 9 percent increase in employee health insurance. She noted
that the City has paid off a significant amount of debt, so more money has temporarily shifted to
Maintenance and Operations, when next bonds are issued the funds will shift back, continued with the
presentation by illustrating the allocation of Friendswood residents' tax dollars, and showed Harris
County, Galveston County, and Texas City as a comparison. Mr. Roecker reminded Council that
Friendswood does give a 20 percent homestead exemption, so the tax rate cannot be considered at face
value. Ms. Edge stated she would like to turn Council's attention to the Fiscal year 2011 All Funds
Proposed Revenue PowerPoint slide. The City has contracted with a collection agency to collect older
fines, which is currently generating $40,000 a month in revenue, fines are only 3% of the budget. The
next portion was the Fiscal Year 2011 All Funds Proposed Revenue, and began the Fiscal Year 2011
General Fund Proposed Revenue. She pointed out that 60 percent of the proposed General Fund is from
.__. property taxes, and 5 percent is from transfers, and both the Administrative Services Director and the
Community Development Director salaries are provided through this fund. Ms. Edge then presented the
Fiscal Year 2011 General Fund Proposed Expenditures, highlighting departmental budgets, comparing
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the current Fiscal Year 2010 budget and the proposed Fiscal Year 2011 budget, pointed out the Monthly
Operating Costs per household of $154. In explanation of the General Fund Balance slide, Ms. Edge
showed that the ninety day reserve is based on the unaudited Fiscal Year expenditures, General Fund is
$7.05 Million, and the ninety day emergency reserve is $5.1 Million, other designations are $274,000, and
the projected undesignated fund balance for future capital improvements is $1.7 Million, discussed
General Fund Forces at Work-Funded, which included a City-wide fuel increase of $25,000, the Activity
Building foundation and floor repair for $35,200, and legal services for $50,000. These items totaled
$110,200, discussed General Fund Decision Packages-Funded, which includes a summer day camp cost
increase of $7,800 dollars, a street maintenance program of $200,000, a facility and equipment
maintenance contingency of$20,000 and the unappropriated funding available is $53,818 with a total of
$281,618.
A lengthy question and answer session was held between Mayor, Council, City Manager, and City Staff
which included discussion regarding revenue bond debt, water rates, infrastructure in place that other
cities do not, sales tax revenue lower than other cities and still have low property tax rate, vehicle
replacement, mixed drink taxes collected, revenues, expenditures, unexpended funds go into fund
balance, Staff does not use or lose, emergency reserve replenishment, condition of the Activity Building,
Municipal Cost Index being a force-at-work, goal to provide same services with 3 percent less dollars to
present a balanced budget, same services desired by the community, taxes not raised will be behind the
curve in two years, legal services overrun, budget calendar and meeting charter requirements, employee
insurance increase, whether to include merit raises, possible insurance pool additions, deductible
increase, average employee salary, Texas Municipal Retirement System (TMRS) restructuring, and what
effect a 1, 2 or 3 percent increase would be to the budget.
Assistant to the City Manager Nick Haby gave a presentation on City services per single family residential �
unit. Staff has created a calculation in an effort to determine what the value of a home has to be in order
for it to pay for the services it receives, based on the calculation using the average home value of
$203,773, the gap between the tax levy and the cost of City services is $888. The taxable value of the
home has to be $316,234 in order to pay for the City services it is provided. Other revenue sources such
as sales taxes, franchise fees, and commercial property taxes make up the difference in the gap.
General discussion ensued regarding funding for a senior citizens bus, police department request for a
new officer, overtime costs for special events and other events, salary and training costs, privatization of
services, grant writer services, economic development salary, training budgets, retreat costs, budget for
facilitator taken out of Council budget, explanation of longevity pay, certificate pay, incentive pay and
merit increase, and how much of a tax increase if inerit increase included.
This meeting was adjourned at 9:43 PM.
Mayor avid J.H. Smith
Attest:
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Melinda Welsh, TRMC v � �
City Secretary * *
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