Min - City Council - 1986 - 02/24 - WorkshopALLEN CITY COUNCIL
CALLED - SPECIAL WORKSHOP SESSION
FEBRUARY 24, 1986
Present:
Donald P. Rodenbaugh, Mayor
Council Members:
Joe Farmer, Mayor Pro Tem
Jim Wolfe
Jim Pendleton
Absent:
Jim McClure
Rex Womack
Gary Koch
City Staff:
Jon McCarty, City Manager
Marty Hendrix, City Secretary
Ernie Hoback, Director of Public Works
Charlotte Smith, Finance Director
Guests:
Lewis F. McLain, Jr., with Administrative & Fiscal Consulting
Services, Inc.
Becky Brooks, with Administrative & Fiscal Consulting Services, Inc.
The called - special workshop session of the Allen City
Council was called to order by Mayor Rodenbaugh at 7:20 p.m.
on Monday, February 24, 1986, in the Council Chambers of the
Allen Municipal Annex, One Butler Circle, Allen, Texas.
This called - special workshop session had been called by
the City Council in order to review and discuss the water and
sewer rate study prepared by Lewis F. McLain, Jr.
Workshop: Review and
Discuss the Water and
Sewer Rate Study
Prepared by Lewis F.
McLain, Jr. (Agenda Item II)
Lewis F. McLain, Jr., with Administrative & Fiscal Con-
sulting Services, Inc., spoke before the Council on the recent
water and sewer rate study conducted by his firm for the City
of Allen. He began with a review of the final document pre-
pared and distributed to the City Council.
Mr. McLain's presentation began with the overview listed
on page 1 of the document. Mr. McLain explained what the
study contained and the results he had found from the statistics
he had gathered. He then reviewed and explained the comparison
of planned versus actual results for the water and sewer utility
fund as listed on page 2 of the document; reviewed and explained
in detail the line item revenues, expenditures, net change in
working capital components, and the statistical analysis for
the water and sewer fund as shown on pages 13 and 14; reviewed
page 21 in detail which showed the calculation of General and
Administrative Charge (G & A) and explained how these charges
should be allocated to the utility fund.
ALLEN CITY COUNCIL
FEBRUARY 24, 1986
Page 2
The Council again discussed the capital recovery fees
that are collected and how they are used by the city and
exactly what the term "recovery" means.
Mayor Rodenbaugh recessed the called - special workshop
session at 8:40 p.m. The meeting was reconvened at 8:55 p.m.
There was further discussion by the Council on what was
determined to be the average consumption in Allen and the
conclusion by Mr. McLain that the average consumption in
Allen was still under 10,000 gallons.
Mr. McLain then calculated for the Council the various
classes of consumption currently being experienced in the city.
The Council reviewed again the G & A chart and had Mr.
McLain explain how that chart had been prepared.
City Manager Jon McCarty pointed out to the Council the
proposed years for selling the remaining water and sewer
revenue bonds in three remaining years rather than five years
as reflected on page 22 of the document.
With no further discussion on the water and sewer rate
study, City Manager McCarty and the Council extended appreciation
to Mr. McLain for his work on the water and sewer rate study.
Items of Interest to
the Council (Agenda Item III)
City Manager McCarty advised the Council that he had
distributed to the Telephone Subcommittee of the Council
a memo regarding the current status of the case for the
Extended Area Service in Allen.
-it
Workshop: Review and
Discuss the Water and
Sewer Rate Study Prepared
by Lewis F. McLain, Jr. (cont'd) (Agenda Item II)
There was considerable discussion by the Council on the
capital recovery fees being used in the debt service coverage
test and the 508 portion that can be used to pay back debt
service, the concept of who actually pays for the capital
recovery fees, i.e., the developers, the new residents, or
actually the tax payers, and the major approaches brought
out in this study being the use of the capital recovery fees
in the calculation of debt service coverage and the allocation
of the G & A expenses.
The Council also discussed if the debt service coverage
had been achieved without the capital recovery fees, and an
explanation of the line item reflecting the contract with
Belz Outlet Mall,the legality of showing it that way and if
that way it will effect the water and sewer rate the local
residents will have to pay.
Mr. McLain then reviewed page 10 of the document which
showed the comparison of the old flat rate structure with
the new declining rate structure and the comparison of the
differences in the bills and the amount of consumption.
Mr. McLain then concluded his report by advising that
a water and sewer rate increase was not needed at this time.
However, the city staff should use his report and watch
the numbers in the utility fund during the preparation of
the FY 1986 - 87 budget. If the figures reflect that a rate
increase is needed, then a new rate schedule can be adopted
as part of the budget adoption process.
The Council again discussed the capital recovery fees
that are collected and how they are used by the city and
exactly what the term "recovery" means.
Mayor Rodenbaugh recessed the called - special workshop
session at 8:40 p.m. The meeting was reconvened at 8:55 p.m.
There was further discussion by the Council on what was
determined to be the average consumption in Allen and the
conclusion by Mr. McLain that the average consumption in
Allen was still under 10,000 gallons.
Mr. McLain then calculated for the Council the various
classes of consumption currently being experienced in the city.
The Council reviewed again the G & A chart and had Mr.
McLain explain how that chart had been prepared.
City Manager Jon McCarty pointed out to the Council the
proposed years for selling the remaining water and sewer
revenue bonds in three remaining years rather than five years
as reflected on page 22 of the document.
With no further discussion on the water and sewer rate
study, City Manager McCarty and the Council extended appreciation
to Mr. McLain for his work on the water and sewer rate study.
Items of Interest to
the Council (Agenda Item III)
City Manager McCarty advised the Council that he had
distributed to the Telephone Subcommittee of the Council
a memo regarding the current status of the case for the
Extended Area Service in Allen.
-it
ALLEN CITY COUNCIL
FEBRUARY 24, 1986
Page 3
Items of Interest to
the Council (cont'd) (Agenda Item III)
City Manager McCarty also brought the City Council up-to-
date on the bomb threat received by city hall on Friday,
February 21st, and the attempted robbery of the Texas American
Bank on the same day and the capture of the man who attempted
the robbery.
Adjourn
With no further discussion, Mayor Rodenbaugh adjourned the
called - special workshop session of the Allen City Council
at 9:40 p.m. on Tuesday, February 24, 1986.
These minutes approved on the 6th day of March
1986.
Marty Hendrix CITY SECRETARY /