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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 �i