Min - City Council - 1988 - 06/30 - Special CalledALLEN CITY COUNCIL
CALLED - SPECIAL SESSION
JUNE 30, 1988
Present:
Joe Farmer, Mayor
Council Members:
Rex Womack
Jerry Wilson, Mayor Pro Tem
Bobby Glass
Jim Wolfe
Jim Pendleton
Gary Edstrom
City staff•
Jon McCarty, City Manager
Marty Hendrix, City Secretary
With a quorum of the Council Members present, the called - special
session of the Allen City Council was called to order by Mayor Farmer at
7:15 p.m. on Thursday, June 30, 1988, in the Council Chambers of the Allen
Municipal Annex, One Butler Circle, Allen, Texas.
Budget Workshop - Staff Presentation
of Preliminary Budget (Agenda Item II -A)
City Manager Jon McCarty provided opening remarks on the budget
preparation and what the Council would be reviewing during this meeting. He
also advised who would be making the presentations and what was contained
in the budget materials.
Using overhead transparencies, Charlotte Smith, Finance Director,
reviewed the budget document with the Council beginning on page 1 and
continuing through page 4. Those pages contained information on the general
fund revenues and the general fund revenues comparative analysis.
There was discussion by the Council on if the sales tax figure estimated
for Southwestern Bell Telephone had taken into consideration any additional
monies that could be made if Extended Area Service is approved. There was
also discussion on the estimated single family dwelling unit permits and how
they were calculated; and the estimated recreation fees, especially those
shown for baseball and why they are going down.
Mrs. Smith then reviewed page 6, showing the calculation of current tax
revenues for 1988 - 89. The Council requested the same figures shown on
that page for the FY 1987 - 88 budget year for comparison.
Mrs. Smith then reviewed pages 7 through ll with the Council. Those
pages showed the 1988 effective tax rate worksheet, the 1988 rollback tax
rate worksheet, and the notice of effective tax rate. She pointed out this
year's effective tax rate of $.52139 per $100 valuation, the maximum rate
unless unit publishes notices and hold hearings being $.53703 per $100
valuation and the projected year's rollback rate of $.55928 per $100 valuation.
The Council discussed with city staff when the certified tax roll will be
received by the city from the Central Appraisal District.
The Finance Director went on to review page 12, showing the assessed
value comparison for the general fund.
ALLEN CITY COUNCIL
CALLED - SPECIAL SESSION
JUNE 30, 1988
Page 2
Budget Workshop - Staff Presentation
of Preliminary Budget (cmnt'd) (Agenda Item II -A)
Michael Stanger, Assistant to the City Manager, then reviewed the
general fund expenditures by department and pointed out overages. Mr.
s Stanger advised that the City Secretary's budget was over budget by
approximately $4,000 and this some of this amount was shown to be in the
Council Expenses line item. The Council briefly discussed the overages and
asked that further information be provided on this item.
Mr. Stanger then reviewed the general fund comparison of 1987 - 88
revised budget to the 1988 - 89 base budget.
There was discussion by the Council on the new buildings that were
coming on line in the next budget year, and the increases in the Engineering
Department's base budget.
Mr. Stanger reviewed the general fund new programs - capital outlay and
other requests for the 1988 - 89 budget. The Council discussed the vehicles
that are being requested by the Parks and Recreation Department and the
Police Department and if these were replacement vehicles or actually new
additional vehicles.
Mr. Stanger then reviewed the general fund new programs - personnel
requests for the 1988 - 89 budget. There was discussion by the Council on
the paramedic program indicated in the Fire Department and if the amount
being requested was to just begin a program or did the amount indicate a
fully developed program. In further discussion, the Council requested that
additional information was needed on this item to include what a fully
operational paramedic program would entail, what it would cost and what was
involved in getting into a fully operational program. The Council also
discussed what the buyer position was in the Finance Department. There was
discussion by the Council on the new library building and if the request for
the additional personnel was due to the fact that they would be adding
additional hours of operation.
The Council then discussed the proposed base budget and the amount that
the proposed $.559 tax rate could fund. The Council also discussed the
estimated tax roll.
Finance Director Charlotte Smith reviewed with the Council the general
fund revenue and expenditure recap showing the amount of revenues,
expenditures, the over/under amounts, the transfer from the water and sewer
fund and the net revenues for the current budget year, the revised figures
for the current budget year and the estimated budget for 1988 - 89.
The Council discussed the water and sewer revenues.
Mrs. Smith continued her review on the projected general fund balance,
the fund balance policy statements, the debt service requirements for 1988-
89, and the projected debt service fund balance shown on pages 19 through
22 of the budget document.
Mrs. Smith explained to the Council the water and sewer revenues, the
water and sewer revenues comparative analysis, the water and sewer fund
expenses, the comparison of 1987 - 88 revised budget to 1988 - 89 base
budget, the new programs - capital outlay request for the 1988 - 89 budgets,
and the new programs - personnel requests for 1988 - 89 budget.
City Manager Jon McCarty spoke before the Council on the water and
sewer budget and the operation of the Stacy Road Pump Station. He advised
of a recommendation from Texas Power and Light Company about when the
pumps should be run in order to get a better electrical rate. He advised that
a schedule would be worked out for the pump station and when the new
overhead water tower was brought on line.
ALLAN CITY COUNCIL
CALLED - SPACIAL SESSION
NNE 30, 1988
Page 3
Budget Workshop - Staff Presentation
of Preliminary Budget (coat'd) (Agenda Item II -A)
There was discussion by the Council on the implementation of the
electronic meter reading system and if figures were included in the working
papers on the budget to show how the city would save with this type of
program. The Council discussed how this program would work and expressed
an interest to have figures produced that would show the cost benefit of
doing this program. There was additional discussion by the Council on the
need to raise the water rates again.
The Finance Director then reviewed the water and sewer fund revenue
and expense recap and debt service requirements shown on pages 29 and 30 of
the budget document. Mrs. Smith advised of the debt coverage factor of 1.03
which was taking into consideration all of the factors.
Council Discussion and Input (Agenda Item II -B)
There was discussion by the Council on the status of the refunding of
the water and sewer revenue bonds and what action the Council needed to
take to be ready with that plan when the time is right.
The Council reviewed the dates shown on the budget calendar and the
events relating to those dates. At this time Mayor Farmer moved on to
Agenda Item III for a report from the Council's ad hoc subcommittee on the
budget retreat.
Report of the Budget Subcommittee
and Consider Related Action Items (Agenda Item III)
Councilman Jim Wolfe, Chairman of the Budget Subcommittee, spoke
before the Council on the details of the plans for the budget retreat.
Councilman Wolfe advised that the subcommittee was recommending that the
budget retreat begin early Friday morning, with those who could arrive on
Thursday evening to meet for dinner at 8:00 p.m. Mr. Wolfe explained that
the plans were for a full day of budget presentations and work on Friday,
Saturday and most of Sunday. Mr. Wolfe explained that more details and the
outline of the budget presentations would be presented at the Council meeting
to be held on July 7.
Council Discussion and Input (cont'd) (Agenda Item II -B))
The Council discussed with the economic conditions, the loss in land
appraisal values, and the need to raise the tax rate to support the existing
budget, there was a need to:
• Look at the operation of the water and sewer department
and the personnel needed for that department.
• Look at excess property owned by the city and consider
perhaps selling off sites and buildings that will not be
needed upon the completion of the police and courts building
and library building.
• Look at adding in additional monies in the proposed budget
for economic development.
• Look at the telecommunications study and determine if there
is a need to include additional monies in the budget for the
implementation of the communication system for the
municipal complex site.
There was further discussion on the focus by the city towards economic
development for next year and how this will be approached in the next year's
budget. The Council discussed the amount that had been included by the city
ALLEN CITY COUNCIL
CALLED - SPECIAL SESSION
JUNE 30, 1988
Page 4
Council Discussion and Input (cont'd) (Agenda Item II -B))
staff in the budget for this purpose, being a total of $15,000, the status of
the work of the Economic Development Alliance at this time, the studies that
are being conducted, the use of consultants, and if new membership is being
solicited to raise additional monies. The Council also discussed the amount of
money available for the implementation of the communications equipment,
based upon the results of the communications study, and what funds were
planned to be used to fund this communications system.
Items of Interest to the Council (Agenda Item IV)
*Mayor Pro Tem Jerry Wilson advised of the work of the Telephone
Subcommittee in anticipation of receiving the final order from the Public
Utility Commission. He advised that several subcommittees that have been
developed from the Council's subcommittee to work on the Extended Area
Service campaign and promotion. Mayor Pro Tem Wilson was in charge of the
advertising subcommittee and he advised of other committee members. Those
members included a local printer, Karen Cage with DLM, Sarah Chumbley, a
real estate agent, and a reporter and editor with "The Allen American". He
advised of the various methods of advertising and promotion that are being
planned for this promotion, such as advertising staffers, signs, a logo design,
etc. He advised of Ms. Cage's expertise in the advertising and promotion
field and what an asset she will be to the advertising process. He advised
that $3,600 had been raised to be used to fund this process. The Council
discussed how the "street walkers" portion would be used in this process.
There was further discussion on the balloting process for EAS and when
it will be initiated, if a calendar had been originated for the process, and the
holding of a public foram and if it was to be one event or multiple events.
-Mayor Farmer advised the Council of the status of the development of
the process and procedure for the "City Chat" column to be in "The Allen
American". Mayor Farmer distributed to the Council the procedure and the
calendar list of suggested articles that had been developed for the entire
year. There was discussion by the Council on how the articles should be
written and what type of position should be taken in the articles. The
Council reviewed the list of articles and discussed the upcoming articles and
if they were appropriate during this time frame.
Adjourn
With no further discussion, Mayor Farmer adjourned the called - special
session of the Allen City Council at 10:33 p.m. on Thursday, June 30, 1988.
These minutes approved on the 21th day of JULY , 1988.
APPROVED:
�j XzAooltk_
oe Farmer, MAYOR
ATTEST:
Marty Hendrix, C C, CITY SECRETARY