1981 09 17 CC Minutes, Special10917 -1
MINUTES OF THE SPECIAL MEETING
OF THE CITY COUNCIL OF THE CITY OF BAYTOWN
September 17, 1981
The City Council of the City of Baytown, Texas, met in
special session on Thursday, September 17, 1981, at 6:30
p.m. in the Council Chamber of the Baytown City Hall with
the following attendance:
Fred T.. Philips
Jimmy Johnson
Perry Simmons
Mary E. Wilbanks
Roy L. Fuller
Allen Cannon
Emmett 0. Hutto
Fritz Lanham
Randy Strong
Eileen P. Hall
Councilman
Councilman
Councilman
Councilwoman
Councilman
Councilman
Mayor
City Manager
City Attorney
City Clerk
The meeting was called to order with a quorum present
and the following business was transacted:
Consider Proposed Ordinance, Establishing Tax Rate for
1981 -82 Fiscal Year
Mayor Hutto explained that the Council had held a
public hearing regarding the proposed tax rate to provide
any interested citizen with ample opportunity to speak.
However, a gentleman had requested to be allowed to speak
concerning this matter; therefore, Mayor Hutto inquired if
Council had any objections to allowing this individual to
speak. Since there were no objections, Mayor Hutto recog-
nized Mr. Lamar Kelley who addressed the Council on behalf
of the Baytown Taxpayers Association. A copy of Mr. Kelley's
presentation is attached to the minutes as Attachment "A"
and made a part hereof.
Mr. Lanham explained that the formula used to acquire
the figure that must be used in the tax notice advertisements
is established by State law. The Administration recognized
that the notices that are required to be published are
confusing; however, the thirteen (13%) figure was arrived at
in accordance with State law..
In response to an inquiry from Council, Glen Erwin, Tax
Assessor - Collector for the City of Baytown, explained that
the formula set forth by the State, allows the City to
calculate the revenues necessary to pay bonded indebtedness
and add to that the same operating and maintenance costs
needed to operate the city during the last fiscal year.
This figure does not include increases in operating costs or
salaries or additional services, etc. Council can raise the
rate three (3io) percent above the rate published by the Tax
Assessor - Collector without a public hearing. The proposed
$ .60 rate is thirteen (130) percent increase over the
effective rate ($ .53).
With regard to Mr. Kelley's suggestion that the tax
package be returned to the Equalization Board, the City
Attorney explained that once the tax roll has been certified
to the City Council by the Board of Equalization and accepted
10917 -2
Minutes of the Special Meeting - September 17, 1981
by the City Council, there is no provision to return, amend
or rehear the information. No such provision is made by
Charter or by State law. In effect, that decision has been
made and is final. It is too late to go back and amend the
assessment roll.
Mr. Richard Steitle appeared as representative of the
views of a number of residents of Whispering Pines and Icings
Bend. Mr. Steitle stated that because of the re- evaluations,
even with the effective tax rate, most residents of Baytown
will be paying substantially more in taxes. Therefore, Mr.
Steitle requested that City Council adopt a tax rate as
close to the $ .53 as possible.
Mr. Lanham provided Council with updated budget calculations
and indicated that the City of Baytown had received $94,000
more than anticipated in sales tax which increased total
resources available by $94,000.
The proposed ordinance was drafted based on $ .4551 to
go toward the General Fund Operations and $ .1449 for Debt
Service for a total tax rate of $ .60. The budget which
Council had worked on to this point is based on revenues
that would be derived from that tax rate.
Mr. Lanham explained that the $94 000 is near the
amount that would be derived from the t .50 increase in
garbage charge. Therefore, one consideration would be to
transfer this $94,000 to that fund which would mean a $6.00
per year savings to.everyone who has garbage pickup service.
Mayor Hutto stated that his only concern with that
prospect would be that eventually, the city would need to
increase the garbage charge and rather than have a gradual
increase, the increase would be large. The City has been
attempting to get these services on self sustaining basis
and that is not the direction that the city would be going
if a small increase is not made when necessary.
At this point Councilman Simmons addressed the growth
of Baytown and reflected on the fact that the growth pattern
throughout the County seemed to be to the metropolitan
areas. He pointed out that it would be very convenient for
people to move to Chambers County where the tax rate is
lower, but still enjoy the facilites offered in Baytown.
Councilman
amendment to the
tax levy exceeds
could be held by
voters; however,
1982.
Simmons mentioned that there had been an
Tax Code which provides that if the annual
eight (8 %) percent, a roll back election
petition of ten (10 %) percent of the qualified
that provision becomes effective January 1,
Councilman Simmons summarized his remarks by stating
that as elected officials of City Council, the Council
should not be timid or reluctant to make a contribution at
the local level to enhance or support the federal attempt to
economize. He stated that until government at all levels
stop massive spending and borrowing, interest rates would
never come down. He felt that Council should reduce the tax
rate and Councilman Simmons moved that a tax rate of $ .57
per $100 valuation be adopted.
Mayor Hutto pointed out that the proposed budget had
been based on a $ .60 tax rate which would mean in order to
have a balanced budget, Council would need to reconsider
budget allocations.
No
10917 -3
Minutes of the Special Meeting - September 17, 1981
In the discussion that followed, Council requested that
the Administration economize as much as possible in conducting
the city's business. Council also indicated that the employee's
benefit package should be protected.
Councilman Johnson seconded the motion.
Council considered that the City's bond rating could be
jeopardized by reduction of the amount of carry over available
from one year to the next.
Council also expressed concern that public hearings
were held with not one individual appearing to discuss
reduction of the tax rate or any proposals to reduce the
budget. There had been persons to appear to request funding.
In response to a suggestion that Council authorize a
flat across the board ten (10%) percent roll back of taxes,
the City Attorney stated that that would violate the basic
premise of the Texas Constitution.
Council considered various alternatives with regard to
producing a balanced budget if the tax rate were to be
lowered.
Councilman Fuller moved to table the motion; Councilman
Philips seconded the motion. The vote follows:
Ayes: Council members Philips, Wilbanks and Fuller
Nays: Council members Johnson, Simmons and Cannon
Mayor Hutto
Mayor Hutto stated that if there was no objection from
Council, Council would now consider the motion to reduce the
tax rate to $ .57.
Councilwoman Wilbanks stated that in order to vote
favorably on the motion, she would need to know where the
cut would take effect in the budget. Therefore, this would
leave her no option, but to vote against the motion.
Mayor Hutto responded that Councilwoman Wilbanks could
move to amend the motion on the floor or Council could vote
on this and if it is voted down, then another motion could
be made.
In response to an inquiry from Council, the City
Attorney explained that Council would be able to adopt a tax
rate through September 24 without being required to begin
the entire procedure over. Another notice would be required
if the tax rate is not adopted this evening.
Councilman Simmons called for the question. The vote
follows:
Ayes: Council members Johnson, Simmons and Cannon
Mayor Hutto
Nays: Council members Philips, Wilbanks and Fuller
Council clarified that the reduction in the rate would
be in the general fund in order that the City Attorney could
make that adjustment in the ordinance.
10917 -4
Minutes of the Special Meeting - September 17, 1981
ORDINANCE NO. 3225
AN ORDINANCE FIXING THE RATE AND TAX LEVY FOR THE CITY OF
BAYTOWN FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1982) UPON
ALL TAXABLE PROPERTY IN SAID CITY OF BAYTOWN IN ACCORDANCE
WITH THE LAWS OF THE STATE OF TEXAS AND THE CHARTER PROVISIONS
AND ORDINANCES OF SAID CITY; AND REPEALING ALL ORDINANCES OR
PARTS OF ORDINANCES IN CONFLICT THEREWITH.
Consider Proposed Ordinance, Adopting 1981 782 Budget for
City of Baytown
To be considered at a future meeting.
Consider Proposed Ordinance, Adopting City of Baytown Revenue
Sharing Budget for 1981 -82
To be considered at a future meeting.
Consider Approval of Baytown Area Water Authority Budget
for 1981 -82
To be considered at a future meeting.
Consider Proposed Ordinance, Awarding Contract for Emergency
Sliplining on Kilgore Road
There is an emergency sanitary sewer problem on Kilgore
Road. Therefore, the Administration received emergency bids
to have 425 feet of eight inch pipe sliplined. A six -inch
liner will be installed and the project will require 9
service connections. Emergency pumping measures have been
instituted to pump around the section of sewer line that
collapsed. Two bids were received to perform this emergency
work. The low bidder is Channel Construction Company with a
bid of $10,856.25. Shur -Flo, Inc. bid $12,912.50. Revenue
Sharing funds which have been allocated for sliplining are
available for this expenditure. The Administration recommended
that the bid be awarded to the low bidder, Channel Construction
Company.
In response to an inquiry from Council, Norman Dykes,
Director of Public Works /City Engineer, explained that the
line is approximately 10 feet deep and therefore, would not
be damaged by heavy truck traffic.
Councilwoman Wilbanks moved for adoption of the ordinance;
Councilman Philips seconded the motion. The vote follows:
Ayes: Council members Philips, Johnson, Simmons,
Wilbanks, Fuller and Cannon
Mayor Hutto
Nays: None
ORDINANCE NO. 3226
AN ORDINANCE DECLARING THAT AN EMERGENCY SITUATION EXISTS;
ACCEPTING THE BID OF CHANNEL CONSTRUCTION CO. FOR THE SLIPLINING
OF THE SANITARY SEWER LINE ON KILGORE ROAD; AUTHORIZING THE
PAYMENT OF TEN THOUSAND EIGHT HUNDRED FIFTY SIX & 25/100
($10,856.25) DOLLARS WITH REGARD TO SUCH ACCEPTANCE; AND
PROVIDING FOR THE EFFECTIVE DATE HEREOF.
10917 -5
Minutes of the Special Meeting - September 17, 1981
Consider Proposed Ordinance, Awarding Bid on Emergency
Basis for Purchase of Diesel Engine for Garbage Truck
Bids were taken on an emergency basis for purchase of a
diesel engine which engine had been damaged beyond repair
when the garbage truck which housed said engine was involved
in an accident. Two bids were received for replacement of
said engine. Mustang Power bid $8,277 with delivery from 6
to 12 weeks. Stewart & Stevenson bid $6,800 with one day
delivery. The Administration recommended low bidder,
Stewart & Stevenson. There is no insurance coverage on this
engine.
Councilman Philips moved for adoption of the ordinance;
Councilman Johnson seconded the motion. The vote follows:
Ayes: Council members Philips, Johnson, Simmons,
Wilbanks, Fuller and Cannon
Mayor Hutto
Nays: None
ORDINANCE NO. 3227
AN ORDINANCE DECLARING THAT AN EMERGENCY SITUATION EXISTS,
ACCEPTING THE BID OF STEWART & STEVENSON FOR THE PURCHASE OF
A DIESEL ENGINE FOR A CITY GARBAGE TRUCK; AUTHORIZING THE
PAYMENT OF ($6,800.00) DOLLARS WITH REGARD TO SUCH ACCEPTANCE;
AND PROVIDING FOR THE EFFECTIVE DATE HEREOF.
Work Session
Council scheduled a work session for Monday, September
21, 1981, at 5:00 p.m. to discuss 1981 -82 budgets.
Drainage Problem
Councilman Philips requested that the Administration
consider a drainage problem which exists from Thibodeaux
Street to Pelly Street. A citizen has suggested that an
approximate one foot cut in the street drain would remove
water from 317 Bowie.
Mr. Lanham stated that this particular project is on
the list which the Administration will be bringing to
Council for consideration.
Adjournment
There being no further business to be transacted, the
meeting was adjourned.
2"! 2-4"- -
Eileen P. Hall, City Clerk
Attachment "A"
A POSITION ON TAXES
MY NAME IS LAMAR KELLEY, AND I REPRESENT THE
BAYTOWN TAXPAYERS ASSOCIATION. I WANT TO TALK ON
BEHALF OF OUR PEOPLE ABOUT THE TAX PACKAGE YOU HAVE
BEFORE YOU. MY TALK WILL BE DIRECTED TOWARD THREE
MAJOR AREAS.
THE FIRST AREA HAS TO DO WITH APARTMENTS. BECAUSE
OF INSUFFICIENT INFORMATION, NO APARTMENT IN BAYTOWN
WAS REVALUED. ONE OF THE REASONS GIVEN WAS THAT "THEY
JUST DID NOT HAVE TIME. It THIS, THEN, .REPRESENTS AN
INEQUITABLE TAX PACKAGE AND IF CHALLENGED IN COURT, THE
WHOLE TAX PACKAGE WOULD BE THROWN OUT CAUSING THE CITY
OF BAYTOWN TO GO BACK AND DO WHAT SHOULD-HAVE BEEN DONE
IN THE FIRST PLACE. WITH THE DECREASED TAX RATE,
APARTMENT IMPROVEMENTS COULD ACTUALLY RECEIVE A TAX
REDUCTION.
THE SECOND AREA CONCERNS, AND I QUOTE, "A 13% TAX
INCREASE." LADIES AND GENTLEMEN, THIS IS SUBTERFUGE.
A LARGE PART OF BAYTOWN'S HOMES WERE REVALUED THIS YEAR
AND'RAISED 30% - 40% -.507 OR MORE. THE TOTAL TAX
INCREASE ON MOST HOMES WAS SIGNIFICANTLY LARGER THAN
13%. EVEN IF YOU REDUCE THE OVERALL TAX INCREASE TO'
10',-YOU HAVE SHIFTED THE TAX BURDEN FROM APARTMENTS TO
HOMES AT A RATE MUCH HIGHER THAN
THE EQUALIZATION BOARD -LAST YEAR STATED IN THEIR
REPORT TO THE COUNCIL THAT HOME VALUES TENDED TO BE
SOMEWHAT HIGHER THAN.OUR NEIGHBORING COMMUNITIES, AND A
2
MORE CONSERVATIVE VALUATION APPROACH SHOULD BE USED IN
THE FUTURE. THE REPORT OF THE EQUALIZATION BOARD THIS
YEAR FLATLY STATED THAT BAYTOWN'S EVALUATION OF HOMES
W S HIGHER THAN ANY OF OUR NEIGHBORING COMMUNITIES.
CITY VALUES ALSO ARE GENERALLY HIGHER THAN SCHOOL OR
COUNTY VALUES ON THE SAME HOMES. THIS, IN ITSELF, IS
NOT RIGHT OR FAIR, NOR DOES IT MAKE ANY REASONABLE
SENSE. THE PEOPLE OF BAYTOWN EXPECT TAX INCREASES, BUT
THEY EXPECT REASONABLE INCREASES.. FURTHERMORE, WITH A
COUNTY WIDE SINGLE TAXING BOARD IN THE VERY NEAR FUTURE,
EVALUATIONS HIGHER THAN OTHER COMMUNITIES MAKES LESS
SENSE.
THE tHIRD AREA HAS TO DO WITH THE RECENT CITY
CHARTER ELECTION WHICH LIMITED TAX INCREASES EACH YEAR
TO 10 %, I UNDERSTAND THAT THIS QUESTION WAS RAISED IN
THE EQUALIZATION BOARD MEETINGS, AND THE ANSWER GIVEN
BY THE CITY ATTORNEY WAS THAT THE CHARTER REVISIONS
WERE IN CONFLICT WITH THE STATE LAW, AND THEY DID NOT
HAVE TO PAY ANY ATTENTION TO THE CHARTER REVISIONS FROM
A TAX STANDPOINT. LADIES AND GENTLEMEN OF THE COUNCIL,
THIS CAUSES US SERIOUS AM GRAVE CONCERN_.
IN THE FIRST PLACE, IT IS UP TO THE COURTS TO
DECIDE WHETHER THE CHARTER AMENDMENTS ARE-IN CONFLICT;
AND TO DATE, THIS HAS NOT BEEN DONE IN RELATION TO THE
BAYTOWN CITY CHARTER. IT IS NOT UP TO AN ATTORNEY TO
MAKE THIS DECISION, OR THE CITY ADMINISTRATION, OR FOR
THAT MATTER, THE MAYOR OR COUNCIL.
3
IN THE SECOND PLACE, THE CHARTER REVISIONS REPRESENT
THE WILL OF THE PEOPLE, IT WAS A DECISIVE ELECTION
VICTORY. THE PEOPLE LET EVERYONE KNOW THEIR DESIRES
AND WISHES. IS THIS GOING TO BE TOTALLY IGNORED? IF
IT IS, THIS ALSO CAUSES US SERIOUS AND GRAVE CONCERN,
AND IT SHOULD CONCERN EVERY CITIZEN IN BAYTOWN.
IN THE THIRD PLACE, EACH OF YOU TOOK AN OATH
BEFORE YOU ASSUMED YOUR RESPECTIVE PLACES AS MAYOR AND
COUNCIL. I WOULD LIKE TO QUOTE PART OF THAT OATH TO
YOU NOW. 'THAT I WILL PRESERVE, PROTECT, AND DEFEND
THE CONSTITUTION AND LAWS OF THE UNITED STATES AND OF
THIS STATE AND THE CHARTER AND ORDINANCES OF THIS
CITY." THE OATH ENDS WITH "SO HELP ME GOD." THIS VERY
OATH, AND I ASSUME IT MEANS SOMETHING TO YOU, SAYS THAT
YOU SHOULD ABIDE BY THE REVISED CITY CHARTER.
VERY BRIEFLY, WE ASK YOU TO DO THREE THINGS.
1. RETURN THE TAX PACKAGE TO THE EQUALIZATION
'BOARD TO REVALUE APARTMENTS. THIS IS THE
ONLY EQUITABLE WAY. '
2. STAY WITHIN THE GUIDELINES OF THE CHARTER OF
THE CITY ON ANNUAL INCREASES.
3. GIVE A 10% TO 20% REDUCTION ON ALL HOME
EVALUATIONS TO BRING THEM IN LINE WITH OUR
NEIGHBORING COMMUNITIES.
LADIES AND GENTLEMEN OF THE COUNCIL, I DO NOT ENVY
YOUR JOB IN THIS MATTER FOR I HAVE EXPERIENCED WHAT YOU
ARE GOING THROUGH. OUR ORGANIZATION HAS NEVER BECOME
ACTIVE IN INDIVIDUAL POLITICAL RACES, AND WE WOULD LIKE
IT TO REMAIN THAT WAY. HOWEVER, WE CANNOT STAND IDLY
BY AND SEE YOU DISREGARD THE WILL OF THE PEOPLE OF
BAYTOWN AS CLEARLY EXPRESSED IN A CHARTER ELECTION.
THANK YOU FOR ALLOWING ME THE TIME TO SPEAK TO
YOU
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