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Home My WebLink AboutCC Minutes 2014-09-22 Special 09/22/14 4339 STATE OF TEXAS )( ' CITY OF FRIENDSWOOD )( COUNTIES OF GALVESTON/HARRIS )( SEPTEMBER 22, 2014 )( MINUTES OF A SPECIAL MEETING OF THE FRIENDSWOOD CITY COUNCIL THAT WAS HELD ON MONDAY, SEPTEMBER 22, 2014, AT 5:30 PM AT FRIENDSWOOD CITY HALL COUNCIL CHAMBERS, 910 S. FRIENDSWOOD DRIVE, FRIENDSWOOD, TEXAS, WITH THE FOLLOWING PRESENT CONSTITUTING A QUORUM: MAYOR KEVIN HOLLAND MAYOR PRO-TEM JIM HILL COUNCILMEMBER STEVE ROCKEY COUNCILMEMBER PAT MCGINNIS COUNCILMEMBER JOHN SCOTT COUNCILMEMBER CARLGUSTAFSON CITYATTORNEY ARNOLD POLANCO CITY MANAGER ROGER ROECKER CITY SECRETARY MELINDA WELSH Councilmember Enochs was absent from the meeting. REGULAR SESSION Mayor Holland called the meeting to order. The invocation was given by Councilmember Scott. Mayor Holland led the Pledge of Allegiance to the United States and to the State of Texas. COMMUNICATIONS FROM THE PUBLIC Rob Roy, Friendswood resident, addressed Council and stated he has had an ongoing issue with a neighbors loud air conditioner, read from the City Code regarding noise, gave a history of steps he has taken, should have been measured at the property line in the first place, asked Council to send neighbor a citation in order for something to be done. Sherry Goan, Friendswood resident, addressed Council and stated she represents Keep Friendswoodi Beautiful, discussed the Community Services Department budget items such as the part-time employee that was requested, amount of work has increased since involvement with Keep Texas Beautiful, Stevenson Park budget items requested are needed and gave further explanation, third request is for a Friendswood entryway sign at FM 518 which is needed, land acquisition was an issue but is no longer. PUBLIC HEARING Mayor Holland called a Public Hearing to order to receive comments from the public, both oral and. written, regarding the proposed tax rate for 2014. Mayor Holland asked if anyone would like to speak in favor of or in opposition to the request. No one spoke. Mayor Holland adjourned the Public Hearing. ' ACTION ITEM "Approval of scheduling and announcing the meeting to adopt the tax rate at the October 6, 2014, 09/22/14 4340 meeting died for lack of a motion. City Manager Roger Roecker announced that the tax rate will be adopted at the October 6, 2014, Council meeting. WORK SESSION Mayor Holland opened the discussion regarding the City's proposed Annual Budget for Fiscal Year 2014- 2015. Councilmember Scott stated he was the lone no vote on the proposed tax rate, has done some homework since then, and will later propose for Council to adopt the Effective Tax Rate. By approving the Information Technology (IT) upgrade funding of $630,000 from the above 90-day fund along with some merit increases, the balance in the above 90-day fund will be $2.2 Million per discussions with City Manager Roger Roecker and Director of Administrative Services Cindy Edge. The above 90-day fund is roughly $5.5 million and is 40% above the reserve. The surplus should fund all one-time Decision Packages, and listed the Decision Packages that should be funded with the above 90-day fund with the total being $117,667. If the one-time Decision Packages are funded through the above 90-day fund, Council could still hire both of the mid-term Police Officers while still maintaining the Effective Tax Rate. For the last four years Council has adopted the Effective Tax Rate, does not think it is frugal to maintain the current tax rate, Council has decided to move forward with the Bond issuance, knows citizens overwhelmingly approved the bond but the tax rate will go up with the Bond issuance. Plans to propose at the November Council meeting the need to rewrite the financial policy to allow for more than 90 days in the reserve fund, can earmark funds for roads, use at least $1.5 Million of surplus to pay down debt, not something budgeted or planned for, can almost fund the library project without issuing bonds, use the above 90-day funds to reduce tax burden'to the citizens,will help the City pay down debt. Discussion took place between Mayor, Council, and Staff regarding that Council will vote on the tax rate at the October 6, 2014, Council meeting, flat tax rate of 0.5914 was voted on and approved at the August ' 8, 2014, Council meeting, any time prior to the October 6, 2014, Council meeting, Council can vote on a tax rate less than 0.5914 but not a tax rate higher than 0.5914. The above 90-day fund is used for unexpected items that occur. If funds are depleted, there will be no funds available for emergencies. Councilmember Scott suggested Council use the above 90-day fund to fund all the one-time Decision Packages, estimated cost of$120,000, if Council does not increase spending through ongoing Decision Packages, the Effective Tax Rate could be adopted knowing that the coming year's tax burden will go up, would fund a large amount of Decision Packages, can adopt the Effective Tax Rate, pay for one-time Decision Packages and still have $2.2 Million available in the above 90-day fund. Further discussion took place regarding the $1.2 Million needed from the above 90-day fund for Bond projects, and once the Bonds are issued the funds will be reimbursed. Need a surplus of available funds in the above 90-day fund in case the costs for the Bond projects are more than originally estimated, costs of cement, labor, and materials are going up. If funds from Bonds fall short, Council may have to downsize projects or use some of the above 90-day fund to complete the projects citizens voted on. Councilmember Rockey suggested being frugal on line-item spending, next year's debt load will be around $300,000, the above 90-day fund grows every year because Staff does not spend the whole budget. The first Bond issuance will be this year, will see debt load next year, hold money in reserve fund to have available next year, is not the year to deplete the above 90-day fund balance. Councilmember McGinnis stated his vote in support of the current tax rate was predicated on taking the increased funds and applying them to paying down debt, referred the citizens to a website called Texastransparency.org, can compare the City of Friendswood to other cities, Friendswood stacks up quite well, is a reflection of the City Manager and financial wizards, responding to Council being conservative. The City should come up with a long-term plan to reduce debt. If Council were more aggressive and fiscally conservative, could save significant interest payments. Further discussion was held regarding that in the Fiscal Year 2003-2004 budget the projected debt was $10.8 Million and the interest payments were $5.8 Million, population has increased, City employee's pay raises, the need to bump up some position's starting pay salaries is not in the proposed budget, citizens voted and agreed on the amount of debt to take on with the Bonds, Council has ' not discussed the idea that the above 90-day fund would supplement any costs that exceed estimates on the Bond projects, possible funds needed in the future for the Blackhawk Wastewater Treatment Plant, and Council needs to prepare for economic down cycle, and 2005 Bond payoff. The example of i 09/22/14 , 4341 Hurricane Ike was used as a reason to have funds available in reserve, cleanup efforts for Hurricane Ike cost$10 Million, had $11 Million in reserve at the time. The consensus of Council was for Staff to re-work the schedule showing the order Decision Packages could be funded if the Effective Tax Rate was approved and if the estimated $120,000 of one-time Decision Packages were funded through the above 90-day fund, also show Decision Packages that would fall below the line if the Effective Tax Rate was adopted. Staff will also investigate debt retirement and bring the findings back to Council. The meeting was adjourned at 6:35 PM. Mayor Kevi (land Attest: Melinda Welsh, TRMC O City Secretary U: :o I