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2003 07 31 CC Minutes, SpecialMINUTES OF THE SPECIAL SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN July 31, 2003 8:00 a.m. The City Council of the City of Baytown, Texas, met in special session on July 31, 2003, at 8:00 a.m. in the Council Chamber of the Baytown City Hall with the following in attendance: Ronnie Anderson Council Member Coleman Godwin Council Member Don Murray Council Member Scott Sheley Council Member Calvin Mundinger Mayor Pro Tem Gary Jackson City Manager Ignacio Ramirez, Sr. City Attorney Gary W. Smith City Clerk The following members were absent: Mercedes Renteria III Council Member Pete C. Alfaro Mayor The meeting was opened with a quorum present after which the following business was conducted: Receive the City Manager's proposed budget and budget message for fiscal year 2003 -2004. City Manager Gary Jackson presented the proposed budget and budget message for fiscal year 2003 -2004. Mr. Jackson outlined the key components of the proposed budget and related that the major issues and fiscal constraints are found in the manager's message and major budget issues. No increase in the tax rate is proposed. Increases in water and wastewater rates are proposed, primarily to fund improvements to the wastewater system. An increase in revenue of 9% is necessary to fund new debt for water and wastewater projects. A new fee is proposed for the storm water utility fund. A rate study is proposed to consider impervious cover in setting the storm water fee. Work on the proposed budget began at the beginning of the 2002 -2003 fiscal year. A shortfall in revenues had been projected, if spending was not controlled and revenue enhanced. The four priorities reflected in the proposed budget are as follows: Public Safety and Health, Employee Compensation and Benefits, Emphasis on infrastructure, capital projects and bond program implementation in the General Fund and Wastewater and Utility Fund, and Economic Development. The goal of the budget is as follows: to develop a proposed balanced budget without an increase in the property tax rate, while reducing expenditures without significantly affecting core services to the citizen - customers of the City. The proposed budget controls expenses, yet certain areas are experiencing increased workloads. Page 2 of 3 Minutes of the Special Meeting —July 31, 2003 The proposed budget includes a 2.5% across the board salary increase to be effective on January 1, 2004. This is for all employees who are not covered by a collective bargaining agreement. Funding is available to provide an increase for employees covered by collective bargaining, if an increase is approved in the collective bargaining agreement. Significant increases have been experienced in health insurance. The proposed budget includes a 15.3% increase in medical premiums for the City and the employees. The dental plan is under- funded and the proposed budget includes a 30% increase, with an additional 30% increase projected for the next subsequent fiscal year. The salary increase will cover the proposed insurance increase for a lower -paid employee with maximum dependents. The proposed budget includes a recommendation to repeal the action of September 1993 concerning retiree health coverage and to implement a tiered system. An employee who has worked 25 or more years for the City will have the same retiree coverage as a current employee or a current retiree. Two alternatives will be presented for the water rate increases and the consultant, Maximus, will be present to discuss the alternatives during the work session on August 5, 2003. The budget proposes a General Fund that is less than the adopted 2002 -2003 General Fund budget. The total budget is 2.2% greater than the adopted budget for 2002 -2003. The increase is mainly in the Water and Sewer fund. The General Fund budget reduction is accomplished by the recommendation of the elimination of 9 vacant positions. Two vacant positions are recommended to be filled after six months of the fiscal year. The budget is not perfect but it is conservative and it achieves many of the priorities that Council has communicated. Budget work sessions will be held on Monday, August 4 at 8 a.m., Tuesday, August 5 at 8 a.m., and Wednesday, August 6 at 4 p.m. Appreciation is extended to Donna Sams, Finance Director, Rhonda Young, Treasurer, Teri Roche, Budget Officer, Robert Chambers, Controller, Bob Leiper, Assistant City Manager, and all the Finance Department for their work in preparing the proposed budget. The work of each department and division director is also appreciated. Consider Proposed Ordinance No. 030731 -1 setting the time, date and place of the public hearing on the proposed budget for fiscal year 2003 -2004. Proposed Ordinance No. 030731 -1 sets the time, date and place of the public hearing on the proposed budget for fiscal year 2003 -2004 at 6:40 p.m. on Thursday, August 28, 2003 in the Council Chamber of Baytown City Hall. Section 43 of the Charter of the City of Baytown requires Council to determine the time and place of the public hearing on the budget. The proposed ordinance satisfies the requirements of the Charter and schedules the public hearing during a regular meeting of the City Council. Council Member Murray moved adoption of the proposed ordinance. Council Member Godwin seconded the motion. The vote follows: Ayes: Council Members Anderson, Godwin, Murray and Sheley Mayor Pro Tem Mundinger. Nays: None. Page 3 of 3 00� The motion carried. Minutes of the Special Meeting —July 31, 2003 ORDINANCE NO. 9609 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, SETTING A DATE, TIME AND PLACE FOR A PUBLIC HEARING ON THE PROPOSED FISCAL YEAR 2003- 2004 MUNICIPAL BUDGET; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Consider appointments to the Baytown Municipal Development District Board Mr. Jackson noted that the persons who have expressed interest in appointment to the board and who have submitted applications were included in the packet, except for the application submitted by Mr. Sain. A present member, Ms. Kitty Allen, expressed her desire to continue to serve. Additional applications that have been received were placed at each Council Member's place. Council expressed a desire to delay that appointment to fill the position held by Mr. Gilbert until the first meeting in August. Council Member Anderson moved the reappointment of Kitty Allen to the Baytown Municipal Development District Board. Council Member Murray seconded the motion. The vote follows: Ayes: Council Members Anderson, Godwin, Murray and Sheley Mayor Pro Tern Mundinger. Nays: None. The motion carried. Adjourn. There being no further business, Council Member Murray moved adjournment of the meeting. Council Member Anderson seconded the motion. The vote follows: Ayes: Council Members Anderson, Godwin, Murray and Sheley Mayor Pro Tem Mundinger. Nays: None. The meeting adjourned at 8:33 a.m. ,J G W. Smith /` City Clerk