HomeMy WebLinkAboutMIN 08.08.2005 CC-RThe City Council of the City of Georgetown, Texas, met in Regular Session on the
above date with Mayor Gary Nelon presiding.
iCouncil Present. ;Council Absent:
Patty Eason, Henry Carr, John Kirby, Farley Snell, iGabe Sansing, Doug Smith
.,Ben Oliver If
if
Staff Present:
Paul Brandenburg, City Manager; Tom Yantis, Assistant City Manager; Jim Briggs, Assistant City
Manager for Utility Operations; Patricia Carls, City Attorney; Sandra Lee, City Secretary; Micki Rundell,
Director of Finance and Administration; David Morgan, Police Chief; Anthony Lincoln, Fire Chief; Randy j
+, Morrow, Director of Community Services; Bobby Ray, Acting Director of Planning and Development;
Kevin Stofle, Assistant Police Chief; Clay Shell, Assistant Fire Chief; Laurie Brewer; Controller; Terry
Jones, Purchasing Director; Glenn Dishong, Water Services Manager; Lorie Ann Lankford, Accountant
111; Danella Elliott, Finance Administrative Assistant; Kimberly Garrett, Assistant Director of Recreation
and Programs; Paul Pausewang, Vehicle Service Center Supervisor; Ray Cummings, Fire Department
Captain; Kevin Russell, Human Resources Director; Eric Lashley, Library Director; Keith Hutchinson,
Public Information Officer; Shelly Hargrove, Tourism Director and Main Street Manager; Kathy Ragsdale,
Utility Office Director; Mark Thomas, Economic Development Director; Ed Polasek, Chief Long -Range
Planner; Tom Benz, System Engineering Manager; Mark Miller, Transportation Services Manager; Mike
Mayben, Energy Services Manager; Shirley Rinn, Administrative Assistant to the City Manager; Robin
Rye, Administrative Assistant to the Assistant City Manager; Ken Finn, Animal Services Director
as 9
Called to order at 4:00 PM
A Overview of the City Manager's Proposed Annual Operating Plan for 2005/06 — Micki Rundell, Director of
Finance and Administration and Paul Brandenburg, City Manager
Rundell told Council that the proposed budget is policy compliant. She noted the contingency reserves of
$10.3 million in a total budget of $122 million, which is almost the same amount as last year, and listed the
increases due to new programs, offset by decreases in new budgeted capital.
Brandenburg thanked staff for their work on the budget. He noted that the Council sets the vision and
establishes their priorities. He explained the funding of the main programs, such as revitalization and
economic development; continued maintenance of the Overall Transportation Plan; continued
implementation of the Downtown Master Plan; improved quality of services, while keeping the property
taxes low; continued funding for economic development and industrial recruitment; improved emergency
response levels; alleviation of immediate traffic congestion; an expanded sewer maintenance program to
include the Edwards Aquifer; expanded recycling/environmental opportunities; expanded and coordinated
parks system; Century Plan update; development of an affordable housing program; expansion of the
Records Management Program; implementation of the Airport Master Plan; and adequate staffing and
related compensation for non-public safety employees.
Rundell gave a financial overview of the proposed budget and listed the variances from the prior year,
including an 8% increase in the Georgetown Utility Systems; 1 % decrease in Finance and Administration
with program variances for new programs; 10% increase in Fire Services; 20% increase in Management
Services, including a 3% cost of living adjustment, retirement increase, and market adjustments;
City Council Meeting Minutes/August 8, 2005
Page 1 of 3 Pages
Community Services inc, uses offset by completion of prior year one-time programs; 14% increase for
one-time programs in Community Development, including an update of the Comprehensive Plan and
Geographic Information System aerial photography update; and 13% increase in the Police Department,
including six patrol officers, STEP increases, and market adjustments at 92% of Round Rock.
Rundell explained the property tax recommendations to fund the General Fund Budget, saying the certified
2005 taxable value is at $2.64 billion, which includes $136.7 million new and annexed property, a 9%
increase in appraised valuation from last year. She explained the effective tax rate as being the rate
necessary to derive the same amount of revenue as the previous year based upon the current year
assessed valuations. She said the adjusted effective rate is $0.31326, saying the proposed property tax
rate will be the same as last year, $0.34626, which would be a 10.5% increase over the adjusted effective
rate. She explained the rollback rate of $0.35914, which is the maximum allowed without holding an
election. She said she would recommend a maximum rollback rate of $0.35909 which would increase the
General Fund revenue by $260,000, saying the increased taxes to the homeowner would be $19.25
annually.
There was a question from the Mayor regarding the rollback rate compared to the proposed $0.34626.
Rundell replied that the rollback allows an increase of up to 8%. She said a proposed rollback rate of
$0.35909 is 7.99% of the tax rate.
Rundell said the sales tax revenue for 2004/05 was $4,750,000, 10% greater than originally budgeted due
to increased building activity and Wolf Ranch opening in July. She said the projection for this year is
$5,400,000 which she said is conservative, with the Wolf Ranch revenue projected at 65% of the Simon
forecast. She estimated the sales tax per capita to be almost $150 per person.
Rundell said there is no utility rate increase anticipated for 2005/06, but there is a potential for future
increases in wastewater and electric. She said there would be adjustments in building inspection fees,
planning fees, recreation fees, and utility customer fees. Snell asked about the 8% return on investment
and the 2% franchise fee for utilities, and Rundell confirmed that they amount to about 25% of the General
Fund revenue.
Rundell noted that the budget also includes the Capital Improvement Program of $24 million, which was
reveiwed at the Council Workshop on May 23, 2005, noting water services of $3 million, electric of $8.2
million, transportation services of $1.5 million, and stormwater of $500,000. She said the General Capital
Projects include the new library, debt funded with voter approved bonds; Fire Station 1 relocation from
downtown to Industrial Boulevard; over $900,000 for development of two new parks and other park
improvements; and expansion of the parking lots at Parks Administration and Fire Station #4.
Rundell said there is a large amount of proposed debt, saying the biggest piece is the construction of the
new library at $7,100,000 and the General Capital Projects, such as the fire station at $1,750,000, other
equipment and improvements. Mayor Nelon said he is asked frequently and asked Rundell to explain why
it is necessary to stagger the approved bonds. Rundell responded that as much as could be done with the
sales tax for property tax relief was issued. She said if all had been done at one time there would have
been an 11 or 12 cent increase on the debt portion of the tax rate. She said there was an attempt to be
very conscious of the impact on the tax rate. She said this way, it will be possible to let growth pay for the
bonds, saying it will probably be possible to issue all the bonds in four years instead of five. Rundell said
the debt per capita is expected to go down from $913 in 2004 to $878 in 2006.
Brandenburg explained the next steps in the budget adoption process. He said the vote to place the tax
rate on a future agenda and to set the public hearings will be on tomorrow night's agenda. He said there
will be required tax publications, two public hearings on the tax rate, a public hearing on the budget, the first
reading of the ordinance on September 1 at a Special Council Meeting, and the second reading on
September 13, in preparation for the beginning of the new fiscal year on October 1.
Carls noted that the recent passage of Senate Bill 18 changes the Truth -in -Taxation Law creating the
reason for two public hearings on the tax rate.
Snell thanked Rundell for the Joint Services Fund information that was handed out previously. Rundell
explained the policy to recognize allocations. Snell objected to economic development being funded
entirely from utilities, saying it should be divided differently.
B Discussion and possible action to provide staff direction in finalizing the 2005/06 City Manager's
Proposed Budget, including a recommended tax rate -- Micki Rundell, Director of Finance and
Administration and Paul Brandenburg, City Manager
Motion by Snell, second by Oliver to direct staff to amend the proposed budget to provide an additional
$250,000 for market adjustment compensation in the General Fund, with a comparable amount from the
Utility Funds to achieve similar results, contingent upon Council's adopting a tax rate of $0.35909.
City Council Meeting Minutes/August 8, 2005
Page 2 of 3 Pages
There were comments and questions regarding an attempt to meet the City of Round Rock level of salaries.
Oliver confirmed that an affirmative vote on this motion would mean that the City would not go higher than
that amount ($0.35909), and that the extra funding would be used for compensation.
Kirby suggested if salaries need to be higher, the number of positions should be cut back. He said to keep
it as close to the same budget being proposed by the City Manager as possible and to accomplish that,
reduce the number of new hires.
Nelon asked and it was confirmed there are still three vacancies at the Police Department because of the
lower salary.
Carr suggested that trying
to
be like Round Rock is
like "chasing Austin."
He said he doesn't think that
makes sense. He said he
is
comfortable with what
the City Manager has
proposed.
motion
There was further discussion.
Motion by Kirby to amend the
previous motion to ask staff
to see what
it takes
in the way of reduction in
hiring for the forthcoming year
in order to accomplish that.
The
motion
died for
lack of second.
Vote on Snell's original motion: Approved 3-2. (Kirby and Carr opposed)(Smith and Sansing absent)
5:20 p.m. recessed to Executive Session
C Council Calendar
- Tuesday, August 9, 4:00 p.m. 2005/06 Budget, continued, if necessary, prior to 6:00 p.m. Council Meeting
- Regular Council Meeting, Tuesday, August 9, at 6:00 p.m. at the Council Chamber, 101 E. 7th Street
- Wednesday, August 10, 2005/06 Budget, continued, if necessary
- Monday, August 22, 4:00 p.m. Public Hearing on Proposed Tax Rate presented at regular Council Workshop
- Tuesday, August 23, 6:00 p.m. Public Hearing on 2005/06 Budget, prior to 6:00 p.m. Council Meeting
- Thursday, September 1, Special Council Meeting for First Reading of Budget Ordinances, approval of GTEC Budget
and related Transportation Improvement Plan; approval of Georgetown Village Public Improvement District #1 Budget;
and First Reading of Georgetown Village Public Improvement District Ordinance
- Monday, September 12, 4:00 p.m. regular Council Workshop, at the Council Chamber, 101 E. 7th Street
- Tuesday, September 13, 6:00 p.m., Second Reading of Budget Ordinances at regular Council Meeting
Executive Session
In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes,
Annotated, the items listed below will be discussed in closed session and are subject to action in the
regular session that follows.
D Sec.551.071: Consultation with Attorney
Pending or Threatened Litigation
. Discussion and possible action to retain the services of Kent A. Sick to represent the City of Georgetown in the
negotiations and condemnation actions, if necessary, related to the acquisition of right-of-way, easements, and other
property interests related to the improvement by TXDOT of Austin Avenue from Leander Road to Williams Drive, and
to other transportation and utility systems projects as they may arise from time to time.
. Discussion and possible action regarding the "Application of the City of Leander to Amend Water Certificate of
Convenience and Necessity (CCN) No. 10302 and Sewer CCN No. 20626 in Williamson and Travis Counties,
Applications Nos. 34789-C and 34790-C," SOAH Docket No. 582-05-7095; TCEQ Docket No. 2005-0864-UCR.
- Legal Advice Regarding Agenda Items and other Matters
5:42 p.m. -- returned to Open Session and adjourned
The meeting was adjourned at 05:42 PM.
City Council Meeting Minutes/August 8, 2005
Page 3 of 3 Pages
ity Secretary Sandra