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2004 07 30 CC Minutes, Specialim MINUTES OF THE SPECIAL SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN July 30, 2004 8:00 a.m. The City Council of the City of Baytown, Texas, met in special session on July 30, 2004, at 8:00 a.m. in the Council Chamber of Baytown City Hall with the following in attendance: Ronnie Anderson Sammy Mahan Don Murray Mercedes Renteria III Scott Sheley Calvin Mundinger Gary M. Jackson Bob Leiper Ignacio Ramirez, Sr. Gary W. Smith Council Member Council Member Council Member Council Member Council Member Mayor City Manager Assistant City Manager City Attorney City Clerk 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 2004 -2005. Gary Jackson, City Manager, presented an overview of the proposed 2004 -2005 budget. The general fund is proposed to be $44,581,314, an increase of $1,031,729 or 2.4% over the current budget. The Water and Sewer Fund includes significant capital infrastructure expenditures and is increased 8.2 %. The Debt Service Fund is increased by $2,000,000 or 25.7 %. The overall increase in all funds is 5.8 %. Mr. Jackson reviewed the history of the general fund increases, noting that significant increases occurred in the years 2000 through 2002 with a considerable portion of the increase being the mandatory Fire Department staffing. Overall the budget is proposed to be $81.8 million. No property tax rate increase is proposed. An increase of 8.6% is proposed for in -city water and sewer rates, primarily to cover debt service. No increases are proposed for permit fees or rental fees, or for sanitation or recycling. The storm water fee is included in the budget at $1, subject to change by City Council. Six new employees are proposed. One to assist with the new web page and egovernment, one to maintain the voice over internet protocol telephone system, one to assist with EMS billing, two utility maintenance workers to assist with response to water leaks, and one construction inspector to be paid from the storm water utility fee. The proposed budget uses $2,365,368 of the fund balance to pay for capital and non - recurring expenses. The working capital will reduce to 82 days, from 92 in the current budget, projected to be 109 days by the end of the current budget. Page 2 of 3 Minutes of the Special Session — July 30, 2004 A compensation survey reveals that the non -civil service employees' salary ranges have fallen behind the market. To address this issue, the non -civil service pay grades will be advanced two grades and each non -civil service employee will be given a 3% market adjustment. For civil service employees without collective bargaining, the pay grades are slightly below market. The tiers will be compressed from 13 tiers to 10 tiers, some salaries will be adjusted, and incentive pay will be adjusted. For civil service employees with collective bargaining, the pay grades are at market. The compensation is subject to collective bargaining. An increase is proposed in the health and dental coverage premiums. The bond program is in its fourth year. Expenditures are projected as follows: $4,000,000 for streets • $500,000 for detention area acquisition • $400,000 for drainage • $85,000 for design of a new fire station $75,000 for issuance costs. $90,000 is set aside for capital drainage. $90,000 for the contract concrete program and 5200,000 for streets from the new sales tax. $125,000 is proposed for an undesignated traffic signal. Streetlights are projected to cost $540,318 for existing and $27,845 for new streetlights. No increase is proposed in the Sanitation Fund. The cost of the Recycling/Drop -off Center is $203,000 and the revenue is $45,000. The Water and Sewer Fund has experienced a $329,000 shortfall in projected revenue due to the rainfall. Houston has increased the rate for raw water by 3 %. BAWA will absorb the cost this year, but will pass the increase through in the 2006 budget year. Maintenance programs will increase by $56,414. The water line rehabilitation program will continue at an annual cost of $175,000. Water and sewer rates are proposed to be increased. In -city water base rates by 7.95 %, per 1,000 gallon rates by 8.06 %, sewer base rates by 7.95% and per 1,000 gallon rates by 9.66 %. Out of city water base rates are increased by 12.63% to return the rate to two times the in -city rate. The budget proposes to reallocate the Convention Center bonds to water and sewer purposes (an original purpose in the issuance) rather than defeasing the bonds. This will allow the $4,000,000 and the $1,080,000 in interest earnings to be made available for water and sewer projects. The debt service will be required to be paid from the Water and Sewer Fund. The total debt service is proposed to be $6,774,129. The Storm Water fee will remain at $1 unless changed by Council. The budget work sessions will be held on Monday, August 2, between 7 a.m. and noon; on Tuesday, August 3, between 7 a.m. and noon; and Wednesday, August 4, between 3:30 p.m. and 6:30 p.m. Mayor Mundinger expressed his appreciation to all who have worked to bring the proposed budget to Council. Page 3 of 3 Minutes of the Special Session — July 30, 2004 Consider Proposed Ordinance No. 040730 -1, setting the time, date and place of the public hearing on the 2004 -2005 fiscal year budget. Mr. Jackson explained that law requires the Council to set the time, date and place of the budget public hearing. The proposed schedule is Thursday, August 26, 2004, at 6:40 p.m., in the Council Chamber, Baytown City Hall, 2401 Market Street, Baytown, Texas. Council Member Renteria moved approval of the proposed ordinance. Council Member Murray seconded the motion. The vote follows: Ayes: Mayor Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. ORDINANCE NO. 9846 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 2004 -2005 MUNICIPAL BUDGET; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Adjourn. Mayor Anderson moved that the meeting adjourn. Council Member Renteria seconded the motion. The vote follows: Ayes: Council Members Anderson, Mahan, Murray, Renteria, and Sheley. Mayor Mundinger. Nays: None. The motion carried. There being no further business, the meeting adjourned at 9:02 a.m. 4 atl, &C Gary W. Smith City Clerk