2004 05 06 WS Minutes - 6pmMINUTES OF THE WORK SESSION
OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
May 6, 2004
The City Council of the City of Baytown, Texas, met in work session on May 6, 2004, at 6:00
p.m. in the Council Chamber of Baytown City Hall, 2401 Market Street, Baytown, Texas, with
the following in attendance:
Ronnie Anderson
Coleman Godwin
Calvin Mundinger
Don Murray
Mercedes Renteria III
Scott Sheley
Council Member
Council Member
Council Member
Council Member
Council Member
Council Member
Pete C. Alfaro Mayor
Gary Jackson City Manager
Ignacio Ramirez, Sr. City Attorney
Gary W. Smith City Clerk
The meeting was opened with a quorum present after which the following business was
conducted:
Review and discuss the educational information prepared by City staff (Fact Sheet,
Frequently Asked Questions [FAQs] and PowerPoint presentation) on the proposed street
maintenance sales and use tax.
Gary Jackson, City Manager, reminded City Council that the discussion of sales tax options
began during the budget meetings with direction for staff to bring more information after the
budget was adopted. On November 13, 2003, three options were presented to City Council. The
options included the street maintenance sales tax, the Fire Control, Prevention and Emergency
District sales tax, and the Crime Control and Prevention District sales tax.
Based on collection data, 1/80h of one percent will produce approximately $750,000 per year,
1 /4'h of one percent will produce approximately $1.5 million annually, 3/8'h of one percent will
produce approximately $2.25 million annually, and %z of one percent will produce $3 million
each year.
In 2001 the Legislature adopted the enabling statute for the street maintenance sales tax. In 2003
the Legislature amended the statute to allow the approval of a 1/4 or 1/8 of one percent sales tax
for street maintenance. The tax, if approved, must be reauthorized every four years, or it will
expire. The tax revenue may be used only on existing city streets and may not be used on state
or federal highways or on county roads. The proceeds may not be used to support debt issuance.
If the tax is approved, merchants will begin collecting the tax on October 1, 2004. The City
would receive the first proceeds in December, 2004. The first year's revenues are projected to be
$1.25 million. It is estimated that nonresidents of the City will pay 40% of the tax proceeds.
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Minutes of the Work Session — May 6, 2004
The City has 274 miles of streets at 65 PCI or below. Below 55 PCI, full reconstruction is
required. Streets below 55 PCI are being addressed through the street bond program.
Currently the City funds small segment repairs and pothole repairs. The City does not operate a
crack seal program. The City does have a concrete contract program. If the tax is approved, the
proceeds may not be used for sidewalks. Two - thirds of the concrete contract program will come
from the sales tax. One -third will come from the General Fund to cover sidewalk repairs.
On December 11, 2003, the proposal presented to City Council included the Concrete Contract
program, a Crack Seal program, and a Street Rehabilitation program. All the work funded by the
sales tax would be performed by contract. No new personnel would be added to perform the
work. The Crack Seal program is a preventive maintenance program to prevent water from
infiltrating the base material. The useful life of a street can be extended five to seven years with
this program. The Street Rehabilitation program would involve the milling and resurfacing of
streets, with necessary base repairs. This would be bid as an annual contract. It would involve
primarily residential streets. It is estimated that approximately 6 miles of streets could be
rehabilitated each year. The City will be able to obtain much quicker action as the bid
specifications will be simpler and the work will be done much more quickly than in street
reconstruction. No employees will be added to perform the work.
Mr. Jackson reviewed the dates relevant to the election. The information contained in the
Frequently Asked Questions was reviewed. Council has the discretion over the funds, but may
appoint a citizen advisory committee. The majority of funds are for new purposes. $1.3 million
will be devoted to new programs. $200,000 will replace existing funding. The use of the funds
is subject to Council's discretion. All the funding must be spent on street maintenance. It will
be used primarily to rehabilitate residential streets that do not require replacement. Council will
select the streets to be rehabilitated. No allocation plan has been adopted, although it has been
discussed by Council. No additional personnel will be added. No trucks or heavy equipment
will be purchased with the funds. The projects will be advertised locally and local vendors will
be able to bid on the jobs. No streets have been designated for rehabilitation in the program.
The PCI report will be used to determine which streets will be rehabilitated.
The needs of the City were reviewed in the bond program and the utility bond program. The
Water and Wastewater Master Plan is reviewing the future needs of the City for utility service
and is a component in the process for the possible adoption of impact fees. The Municipal
Development District is funding 60% of the cost of the new Northeast Wastewater Treatment
Plant and the realignment of the collection system. Each department annually reviews it
strategic plan. The statutes limit the purposes for which sales taxes can be enacted and the
proceeds used. The water and wastewater system is funded by user fees. The Crime Control and
Prevention District was not reauthorized. If the street maintenance sales tax is approved, an
election can be held in May of 2005 for CCPD or other purposes. Currently sales tax is collected
in Baytown as follows, 6.25% for the State, 1% for Baytown, and Y2% for the Municipal
Development District (Harris County) or for the Chambers County Emergency District
(Chambers County). One -half of one percent is available.
Mr. Jackson noted that presentations have been made to Rotary and Kiwanis. A presentation
will be made to the Lions Club on Monday. Staff was directed to look for methods to enhance or
supplement the general fund budget. The proposed sales tax will supplement the budget by
replacing $200,000 currently funded for the concrete contract program. A Fire Control,
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Minutes of the Work Session — May 6, 2004
Prevention and Emergency District could provide some assistance to the budget. Personnel may
not be funded by this tax. A Crime Control and Prevention District tax could provide assistance
to the budget, but it is not available for a vote until February 2005. Each tax provides some
benefit to the budget.
Council Member Sheley observed that if the sales tax is approved in May, the work could be in
progress by December 2004. If an election were called for February 2005 on CCPD and
FCPED, the voters would see progress before the election. If this election had not been called,
then one year of improvements would have been lost.
Mr. Jackson reminded Council that supplementing the general fund with sales tax proceeds has
benefits, but if the tax is not reauthorized, then the general fund must be adjusted to
accommodate the loss of funds.
Council Member Godwin left the meeting at 6:59 p.m.
Council Member Mundinger stated that he was confident that Council would use the money
wisely, but Council did not do a good job of explaining the proposition.
Council Member Sheley reminded Council that public funds could not be used to advocate on a
ballot proposition, but that each Council Member was free to ask voters to support the sales tax.
Adjourn.
There being no further business, Council Member Mundinger moved adjournment. Council
Member Renteria seconded the motion. The vote follows:
Aye: Council Members Anderson, Mundinger, Murray, Renteria, and Sheley
Mayor Alfaro
Nay: None.
The motion carried and the meeting adjourned at 7:05 p.m.
G W. Sidth, City Clerk