Min - City Council - 1992 - 06/16 - WorkshopALLEN CITY COUNCIL
BUDGET WORKSHOP
JUNE 16, 1992
Present:
Joe Farmer, Mayor
Councilmembers:
Kevin Lilly, Mayor Pro Tem
Mickey Christakos
David Bishop
Mike Nichols
Steve Terrell
Sharon Hamner
City Staff:
Jon McCarty, City Manager
Charlotte Smith, Finance Director
WORKSHOP SESSION - 6:45 P.M.
With a quorum of the Councilmembers present, the budget workshop session of the
Allen City Council was called to order by Mayor Farmer at 6:48 p.m. on Tuesday, June 16,
1992, in the Conference Room of the Allen Municipal Annex, One Butler Circle, Allen,
Texas.
Budget Workshop (Agenda Item II)
Jon McCarty, City Manager, reviewed with the Council the budget workshop
document for Fiscal Year 1992-93. He reviewed the budget calendar reflecting certain
actions that Council is required to adhere to regarding the budget process. He informed
the Council of four issues that needed consideration: 1) Increase Employee Salary and
Benefits; 2) Begin Recover from Underfunded Capital Outlay; 3) Drainage Utility District
Funding; 4) Innovation in Service Delivery.
Mr. McCarty reviewed the General Fund revenues and expenditures. He pointed out
the $200,000 revised revenue from property taxes for the Fiscal Year 1991-92 budget and
also pointed out the estimated increase in sales tax for 1992-93. Mr. McCarty reviewed a
summary of revenue options showing various tax rates using the effective tax rate
increases of 0$, 3$, and 8%. Council was informed the 1992-93 budget reflects a tax
collection rate of 97% rather than 96%. Mr. McCarty also reviewed with the Council the
Freeport Exemption which was allowed by the City during the past year. The General Fund
balance shows 67 days operational cost in the Fund balance based on the 1992-93 estimated
ALLEN CITY COUNCIL
WORKSHOP SESSION
JUNE 16, 1992 PAGE 2
base budget. Policy statements were reviewed for the General Fund, the Water and Sewer
Fund, and the General Obligation Debt Service Fund. Debt service requirements, along
with projected debt service in the fund balance and a summary of proposed refunding in
new money issues, were discussed.
Mr. McCarty, City Manager, reviewed the revenues and expenses for the Water and
Sewer Fund. He did a comparative analysis of several different revenues for the Water and
Sewer Fund. A comparison of the 1991 and the 1992 budget showed increases in this fund.
Mr. McCarty reviewed debt service requirements for the Water and Sewer Revenue Bonds.
Revenue and expense for anticipated other funds were recapped which included the
Solid Waste Fund, Economic Development Corporation and Storm Water Utilities.
Council reviewed the strategic planning issues and general goals including the
following:
Council has direct power to effect the first four goals. Objectives for all goals are being
written at the present time.
A budget reduction/recovery program by department was discussed. Mr. McCarty
reviewed administration's budget issues for 1992-93 which included the following:
General Obligation (Tax) Bond Sale
• Minimum $3,290,000
• Include FM2170 East, Continuing Overlay Program, Fire Track(s) and Park
Land Acquisition/ Development
• Dec/Jan Sale
• Include Refunding
Funding of Strategic Planning Isaues
Top Nine Will Be Addressed
Dollars Available Above Base Line Budget Will Be Directed Toward These
Creation and Funding of Drainage Utility District
• Included As Part Of This Budget
•
Restricted Traffic Mobility
•
Declining Tax Base/Increasing Service Demands
•
Multi-year CIP
•
Reestablish Credit Worthiness
•
Increased Demands for Police Services
Professional Treatment of Customers
Fire Protection/EMS
1
Employee Considerations
•
Vehicle Replacement
•
Infrastructure Maintenance
Council has direct power to effect the first four goals. Objectives for all goals are being
written at the present time.
A budget reduction/recovery program by department was discussed. Mr. McCarty
reviewed administration's budget issues for 1992-93 which included the following:
General Obligation (Tax) Bond Sale
• Minimum $3,290,000
• Include FM2170 East, Continuing Overlay Program, Fire Track(s) and Park
Land Acquisition/ Development
• Dec/Jan Sale
• Include Refunding
Funding of Strategic Planning Isaues
Top Nine Will Be Addressed
Dollars Available Above Base Line Budget Will Be Directed Toward These
Creation and Funding of Drainage Utility District
• Included As Part Of This Budget
A
ALLEN CITY COUNCIL
WORKSHOP SESSION
NNE 16, 1992 PAGE 3
Use of General Fund Reserve above 60 days
• Use to Offset Capital Outlay Costs For FY 1992-93
• Do Not Use 55-60 Reserve Amount Because of Proposed Bond Sale
Other Fee Increases
• Building Inspection Fees
• Franchise Fees - SWB and CATV
• Water and Sewer Rates if S&P Rating Does Not Improve
Tax Rate
• Maintain at 0% ETR Increase or Less Including New Bond Sale (Option 1)
• Use of 97% Collection Rate
Council instructed the City Manager to proceed with administration's budget issues
with the exception of the creation and funding of the drainage utility district. Council felt
it was bad timing to proceed with this item at the present time. The effect on small
business needs to be reviewed and more information on the general topic is needed prior
to further consideration of the issue.
Items of Interest to Counett (Agenda Item III)
There were no items of interest.
Adimora (Agenda Item IV)
MOTION: Upon a motion made by CouncUmember Christakos and seconded by
Councilmember Nichols, the Council voted seven (7) for and none (0) opposed
to adjourn the budget workshop session of the Allen City Council at 10:45
p.m., on Tuesday, June 16, 1992. The motion carried.
These minutes approved on the 6th day of August , 1992.
ATTEST:
��'lw,�� � / i i' iii
(•
APPROVED:
K— vih Lilly, MAYOR PRO EA4