Min - City Council - 1990 - 06/27 - WorkshopALLEN CITY COUNCIL
SPECIAL WORKSHOP SESSION
NNE 27, 1990
Present:
Joe Farmer, Mayor
Council Members.•
Rex Womack (Absent)
Mickey Christakos
Bobby Glass
Jim Wolfe, Mayor Pro Tem
Alan Fyke
Gary Edstrom
City Staff:
Jon McCarty, City Manager
Charlotte Smith, Finance Director
REGULAR SESSION - 7:30 P.M.
With a quorum of the Council Members present, the special workshop session of the
Allen City Council was called to order by Mayor Farmer at 7:14 p.m. on Thursday, June
27, 1990, in the Council Chambers of the Allen Municipal Annex, One Butler Circle,
Allen, Texas.
Staff Presentation of Preliminary Budget (Agenda Item II -A)
Jon McCarty, City Manager, announced that the Board of Directors of the Collin
County Central Appraisal District voted to award the lowest responsible bid for office
space to the Greenridge Office Building located at 1024 South Greenville Road in Allen.
Mr. McCarty reviewed the general fund revenues, a comparative analysis of the
general fund revenues, calculation of current tax revenues, and the assessed value
comparison during the years 1985 through the next budget year.
Mr. McCarty discussed the general fund expenditures, capital outlay requests,
personnel requests, a summary of revenue options, projected general fund balance and
policy statements regarding the City of Allen fund balance.
I
ALLEN CITY COUNCH,
SPECIAL WORKSHOP SESSION
TUNE 27, 1990
PAGE 2
Staff Presentation of Preliminary Budget (Cont'd) (Agenda Item II -A)
Mr. McCarty reviewed the debt service requirements, the projected debt service
fund balance and a summary of proposed refunding and new money issues.
Water and Sewer revenues and expenditures were reviewed along with capital
outlay requests, personnel requests and debt service requirements for the water and
sewer revenue bonds.
The following budget issues were discussed:
• Loss of assessed value and its effect on tax rate. Tax rate options are:
Keep 66.81 cent tax rate, use reserves and cut programs.
0% increase in Effective Tax Rate - Maintain reserves but no new programs.
3% increase in Effective Tax Rate - some modest growth in selected
programs.
• Create capital item reserve fund.
• If fund balance is great enough - if not wait a year or two.
• Level of service.
Must increase personnel in Police and Parks departments to maintain current
levels.
• To insure no significant drop in service level, new personnel will be
considered in Community Development, Streets, Library, Building
Maintenance, Fire.
• Salary and benefits
• Attempt to budget $175,000 to $200,000 for these programs.
• Reserves.
• General fund 60 day fund balance will be achieved. Fund balance for debt
service will be maintained.
• Water and Sewer Fund.
• If growth in use continues as expected and reduction in water loss is
successful, then rates appear reasonable. Cash flow very poor.
• Operating Transfer.
• If Water and Sewer cash flow does not improve then transfer will not take
place.
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ALLEN CITY COUNCIL
SPECIAL WORKSHOP SESSION
JUNE 27, 1990 PAGE 3
Council Discussion and Input (Agenda Item II -B)
Mayor Farmer and Council discussed the information which was presented by the
City Manager regarding the preliminary budget documents. Individually the Council
members gave their initial thoughts on what should happen to the tax rate and their
desire to maintain service levels. Further, the Council asked to review a budget that
requires no increase in the Effective Tax Rate but they would like to see what programs
could be funded if they decided to increase the Effective Tax Rate by no more than 3%.
Considerable discussion occurred regarding the City's options on a general obligation
bond sale during the next fiscal year.
Items of Interest to the Council
(Agenda Item III)
Mayor Farmer distributed revised and updated information regarding the 1990-91
Council Committee assignments.
Mr. McCarty thanked Charlotte Smith, Finance Director, for help in making this
budget workshop possible.
Ad Dorn
MOTION: Upon a motion made by Mayor Pro Tem Wolfe and seconded by Councilman
Fyke, the Council voted six (6) for and none (0) opposed to adjourn the
special workshop session of the Allen City Council at 9:31 p.m., on
Thursday, June 27, 1990. The motion carried.
These minutes approved on the 19th day of July, 1990.
fill ;J JtD911D1
J6e Farmer, MAYOR
ATTEST:
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Jugy Mo on, CITY SECRETARY