HomeMy WebLinkAbout09/26/1978 City Council MINUTES OF THE BOARD OF ALDERMEN
OF THE
CITY OF THE COLONY, TEXAS HELD ON
SEPTEMBER 26, 1978
A Joint Work Session of the Board of Aldermen ~.nd the Directors of the
Municipal Utility District of the City of The Colony, Denton County, Texas
was called to order with the following members present:
William J. Longo Mayor
C lint Davis Alderman
Linda A. Adams Alderman
Sandra Shearer Alderman
Gene Pollard Alderman
and with Alderman Gary Shipman absent; however, a quorum was established.
The M.U.D. Directors present were:
Jessie Harris, President
Tim White, Director
Art Welty, Director
Loewell Barton, Director
Director Bob Fink was not in attendaace. Also present was Tom Hart, City
Administrator and Rick Chadwick, Manager of the Municipal Utility District.
Item I Consider the City of the Colony's and the Municipal Utility District's
tax rates.
Director White explained that the Directors agreed at their regular meeting
held September 21 to review and possibly change the criteria used to establish
the $.70 tax levy and if changed lower the existing tax levy for the year 1978.
This review has been accomplished and the Board has agreed to lower the tax rate
by five cents stated Director White. The Water Rights Commission bls agreed
with this tax rate reduction for the fiscal year 1978/79, but Director White
emphasized that theme is no guarantee that this tax rate can be maintained for
the fiscal year 1979/80, which is considered the "hump" year relative to the M.U.D.
bond program expenses. Director White stated that a factor in this tax reduction
was the following proposal presented to the M.U.D. board by Fox & Jacobs, Inc.:
1. Based on the official 1978 evaluation of $82,362,460, a · 05 tax rate at 100%~ collection~ produces $41,181.00.
2. If, during the fiscal year 1979, the Board determines
that supplementary revenue is necessary, at any time,
to the financial operation of the District, then Fox
and Jacobs, Inc. will, upon written request, pre-pay
fiscal 1980 tap fees in the equivalent mmount of $41,181.00.
It was the Board's recommendation to the Council that the City pick up this
five cent drop in taxes to assist the city on their proposed bond program.
Director Welty also asked that they seriously consider not lowering the tax
rate until after the bond program, and then lower the city tax rate on a per-
manent rather than on a temporary basis. Director Barton added that this action
by the M.U.D. was done ina spirit of cooperation with the City. President, Jessie
Harris agreed with this recommendation and further stated that he realized that
in budget preparation in the past, they have been very cautious and conservative,
but that this was done with the realization that "water" is contingent for the
growth of The Colony.
Following this presentation by the M.U.D Board Directors, a lengthy discussion
was held. The Council members individually expressed appreciation for this
"spirit of communication," and the hope tb~t this action will improve the line of
communication between the two entities. In regamds to the possibility that M.U.D
may have to raise the tax rate next year, Dan Almon, financial advisor to both
entities, suggested that the City consider accompanying the Board next spring
when they appear before the Water Rights Commission on this matter.