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2015 08 06 WS Minutes, SpecialMINUTES OF THE SPECIAL WORK SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN August 06, 2015 The City Council of the City of Baytown, Texas met in a Special Work Session on Thursday, August 06, 2015, at 5:13 P.M., in the Council Chamber of the Baytown City Hall, 2401 Market Street, Baytown, Texas with the following in attendance: Brandon Capetillo David McCartney Chris Presley Stephen DonCarlos Rick Davis Ignacio Ramirez Leticia Brysch Keith Dougherty Council Member Council Member Council Member Mayor City Manager City Attorney City Clerk Sergeant at Arms Mayor DonCarlos convened the August 06, 2015, City Council Special Work Session with a quorum present at 5:13 P.M., all members were present with the exception of Council Members Hoskins, Renteria, and Sain who were all absent. 1. a. Discuss the City of Baytown 2015 -16 Fiscal Year Proposed Budget. City Manager Davis presented the agenda item to discuss the City of Baytown 2015 -16 Fiscal Year Proposed Budget which is a total of $164,600,000.00 with a 3.29% increase to the general fund, changes in the water and sewer fund that reflect transfers to the CIP, and changes in the debt service fund that reflects 2015 refunding. With regards to expenditures, he stated that the General Fund dominates the majority of the funds. He stated that He stated with regards to the fund balance that there's an $18 million change with about 2/3 of the change being a transfer of funding over to the CIP to allow for more pay as you go projects and the remaining 1/3 of the change being connected to the redevelopment projects such as the mall and the 911 center. He stated that they transferred everything above a 60 day operating and therefore, the fund balance in the operating fund reflect total operating expenses and is not combined with capital project funds. With regards to the general fund revenues, he stated that the industrial district provides the majority of the funds utilized followed by sales and use and property taxes. Council Member McCartney stated that he's not against using the reserved funds for the mall or the 911 center; however, in the past when Council suggested using the reserve funds for other things they were told that they shouldn't do that. He further stated that he would like to see the fund build back up to the 90 day level so that highly desired projects may be accomplished. In response to Council City Council Work Session Special Meeting Minutes August 06, 2015 Page 2 of 5 Member McCartney's statement, City Manager Davis stated that rebuilding the fund is going to part of the fiscal strategy in next year's strategic planning. During further discussion of the general fund revenues, City Manager Davis stated that there's a 7.2% anticipated increase in sales tax, 5% increase in property tax, and a 21% increase in ambulance billing collections, as well as, court fees. He stated that they are proposing to remain at the .82203 tax rate; therefore, the split between the general fund and debt service should remain fairly static. He stated that there will be no increases proposed to the water and sewer rates, the garage sale permits, or the property tax rate, but that there will be a fifty - cent proposed increase in the storm water fees which will allow the City to remain in compliance with regulatory mandates, as well as, provides separation in support in the storm water activities from the general fund. He further stated that there will be a proposed adjustment in development fees in order to maintain services. As it relates to the general fund expenditures by functions, City Manager Davis stated that public safety uses 56% of the fund followed by general government at 25% which is overhead for administrative and internal functions. He stated that as it relates to the general fund expenditures by type the majority is used for personnel services at 75 %. Council Member McCartney inquired if there were any changes to the general fund proposed budget since its last discussion. City Manager Davis stated for clarity that there were no changes and that any future modifications, adjustments, changes, or amendments will be reflected by an updated insert, as well as, a highlighted indicator. During the discussion of the water and sewer fund, City Manager Davis stated that the revenues and expenditures were flat compared to current year operations and that there was a transfer of $8.4 million to the CIP. He stated that some of the FY 2016 projects include Phase III of the expansion of Pirates Bay, a potential convention center, San Jacinto Mall redevelopment, the 911 Center, I -10 Lift Station, Kilgore Sewer Line, Sewer Rehab and Emergencies, and East Baker Sewer Line. City Manager Davis stated that as it relates to personnel, included in the budget is no health insurance rate increase, a one month "Holiday" from employee health care premiums, a 6% contractual Fire Department personnel pay increase, other pay increases equal of a 3% allocation and the recommendation of 14 new positions. Council Member Capetillo inquired if BAWA employees were funded through the general fund or water and sewer. In response to Council Member Capetillo's inquiry, City Manager Davis stated that BAWA employees were funded out of BAWA. Council Member Presley inquired if staff was comfortable with the recommendation of only adding twelve (12) code enforcement officers to service the entire city. City Manager Davis stated that he's not comfortable with the recommendation and recommended engaging in a more comprehensive discussion about the direction and desired accomplishments of code enforcement during the upcoming retreats. Council Member Capetillo inquired about police personnel. City Manager Davis stated that the corporate obligation has been fulfilled and no additional officers are proposed but stated that more discussion is recommended also in this regards during the retreat. Council Member McCartney inquired if the decision is to continue and City Council Work Session Special Meeting Minutes August 06, 2015 Page 3 of 5 move forward with plans as it relates to traffic. Chief Dougherty stated that the plan is to move forward with the current staff by having two (2) officers per shift dedicated to traffic calls. Council Member Capetillo stated that he has concerns when there's no additional request for police and fire personnel in the budget and the City is constantly growing. Mayor DonCarlos stated that Council has been very clear with leaving the option available for Chief Dougherty to request additional officers if needed and the funds would be found to accommodate such. During further discussion, City Manager Davis stated that there will be a bond election for the golf course and a re- authorization election for CCPD, FCPEMSD, and Street Maintenance Fund in November. He further stated that future budget discussions were scheduled as follows: Thursday, August 13th at 6:30 P.M.; Thursday, August 27th at 6:30 P.M., public hearing during regular session; and Thursday, September 10th at 6:30 P.M., consideration of budget adoption during regular session Mayor DonCarlos inquired as to why the Library would no longer process passports. Librarian, Jamie Eustace stated that the reason for discontinuing passport services was due to the processing time becoming too extensive and costly. Mayor DonCarlos requested that there be more discussion on the Library processing passports. Mayor DonCarlos inquired if there was an advantage to purchasing radios as the rental fees to Hams County increased in amount of $120,000. In response to Mayor DonCarlos's inquiry regarding the increased fees for radios, ITS Director, Mr. Ed Tomjack stated that Hams County fees are increasing their rates from $12.75 to $40 per radio per month effective April 1 st which is their next fiscal year. He stated that the rental fee is for subscribing to the network and not for the radio itself. Additionally, he stated that previously it was funded through grants, but now it's being funded through subscriber fees. Mayor DonCarlos stated that there was a decrease of $203,000 from the general fund with the majority of it being transferred to Fire Control District and inquired as to the reason for the transfer. Fire Chief Shon Blake stated that the transfer were for SVA's (airpacks) and capital items that have since been rejected by the Fire Control Board. Deputy City Manager Bottoms stated that the budget was in need of funds and because there were funds available in the Fire Control District they decided to utilize some of the districts funds for items that were legitimate expenses to the district and further didn't affect its projects or budget. Deputy City Manager Bottoms further stated that there was some confusion as to how those funds would be spent so the Fire Control District's Board rejected the proposal and as a result of such staff decided to add the expense to the capital replacement fund instead of putting the burden back on the general fund. Mayor DonCarlos further inquired as to what happens with this item moving forward. City Manager Davis stated that the Board of the District can only accept or reject the budget in which they rejected, therefore moving forward he recommends having a discussion amongst both boards to clarify the uses of the funds. Additionally, Fire Chief Short Blake stated that the capital items that were proposed were never put into the budget before so because this was new and not properly done the District's Board rejected it in which he agrees with their decision as he knows what was supposed to go into the program. City Council Work Session Special Meeting Minutes August 06, 2015 Page 4 of 5 Council Member McCartney inquired if there were funds budgeted for body cameras for police officers. Police Chief Dougherty stated that $50,000 was put into the budget for body cameras. Mayor DonCarlos inquired as to why was the restoration section of the water operations budget eliminated. Interim Director of Public Works, Mr. Nick Woolery stated that this item has no budgetary impact but that the restoration division is being combined into the utility transmission division (water lines). Deputy City Manager Bottoms requested that Mr. Woolery address some personnel changes to the budget. Mr. Woolery stated that there are two (2) general fund positions for streets that also have no general fund budget impact because one (1) position will be funded from eliminating the contract of work of paving- raising and the other position will be funded by moving an existing position to street maintenance. He explained and stated that are six (6) new positions in the street division that are being funded through the result of eliminating contracting work for crack - sealing, mud jacking, and pavement raising. He stated that eliminating those contracts and providing those services in -house would result in a cost savings of approximately $130,000 per year, as well as, provides more control over customer service. He further stated five (5) of the positions will come out of street maintenance budget. Council Member Presley inquired if the crack sealing program could be expanded to include sidewalks being that the program will be an in -house service. Mr. Woolery stated that Mr. Kevin Harvill agreed that sidewalks could be included in the program and that sidewalks are also being reviewed during the PCI program process. Mr. Woolery stated that they requested for two (2) positions for storm water maintenance which is a need in order to maintain service and meet growth demands, but that the request is contingent upon the increase of the storm water fee. Mayor DonCarlos inquired if Baytown has jurisdiction to clean out Hams County Flood Control ditches. Health Department Director, Mr. Mike Lester stated that Baytown has the authority to service the County's property but that it's an expense and additionally stated that staff currently does what they can when a complaint is received. During further discussion, Mr. Woolery stated that they requested two (2) positions in the utilities division for a TV crew to monitor the sewer and storm water lines. He stated that the truck to be used for the TV crew is included in the storm water budget and that there are some major capital projects that will address current overflow issues on Kilgore Road and East Baker Road. He stated that one of the causes for an overflow is due to insufficient capacity so they will be increasing the size of the lines to meet the capacity. During further discussion, an inquiry was made as to the current size of the line on Kilgore Road. Mr. Woolery stated that the current size of the line is 30 inches and will be upsized to 36 inches. Council Member McCartney inquired if the upsize to 36 inches would be sufficient for future growth in the area. Mr. Woolery stated that they need to first increase the capacity of the line and reduce the infiltration issue. Council Member McCartney recommended eliminating the option of paying a $25 fee and have property owners fix their sewer lines. In further explanation of the option to the fee, Mr. Woolery stated that they could be more aggressive with that program but to his understanding the policy that was laid out by Council was that once a year a neighborhood would be scheduled for pipebursting and at that same time they would TV the private lines and if there was a line in condition of needing to be repaired the property owner would be notified of the City Council Work Session Special Meeting Minutes August 06, 2015 Page 5 of 5 condition with the option of making repairs to it within a year or pay the fee of $25. Council Member McCartney stated that when he received a report of how many were paying the fee opposed to repairing their lines the majority of them were paying the fee which is not solving the problem. Mayor DonCarlos requested that information be brought before Council regarding a recommendation to address the infiltration issue. Council Member Presley stated that Council had previous discussion in regards to reducing tax rates for home owners especially with Baytown having one of the highest tax rates in Texas and inquired if there's going to be any efforts toward providing relief in this regard. Mayor DonCarlos stated that this concern is being addressed and when the new evaluations go up and the IDA's are received. City Manager Davis stated that they want to see what the impact from the IDA's is going to be before addressing the relief of the tax rate and that he has discussed various other ways of returning dividends back to the residents. He stated that as it is easy to reduce the tax rate it is harder to increase it and he doesn't want to create more problems by trying to alleviating one. During further discussion, Council Member Presley inquired if the budget for the programming of the MDD events is in the City's budget or the MDD budget and if in the City's budget, how much. City Manager Davis requested that Mr. Scott Johnson respond to the inquiry as some of the events were in the City's budget and some in MDD budget. Mr. Scott Johnson stated that the programming events is included in the City's budget and are as follows: Snow Day in January, Easter Egg Hunt and Farmers Market in September, Ice Rink Opening in November, Arbor Day Tree Giveaway and the Community Yard Sales in which the tree giveaway and yard sales will be moved to the Towns Square. Council Member Presley inquired of the cost currently budgeted for these events. Mr. Cliff Hatch, the Recreation Superintendent stated that the budget for these programs was $18,191, but he requested $100,928 to do more events. Council Member Presley further stated that more funds should be spent on activities in Towns Square on a routine basis. Mayor DonCarlos requested that staff work on increasing this particular programming budget to at least $50,000. 2. ADJOURN With there being no further business to discuss, Mayor DonCarlos adjourned the August 06, 2015, City Council Special Work Session at 6:31 P.M. City of Baytown Yy6 z} C /Tyo� Tf o 104 -n f S r}