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Home My WebLink About07/20/1992 City Council 00441 MINUTES OF THE CITY COUNCIL MEETING HELD ON JULY 20, 1992 The Regular Session of the City Council of the City of The Colony, Texas was called to order at 7:30 p.m. on the 20th day of July, 1992, at City Hall with the following Council roll call: William W. Manning, Mayor Present Mike Lynch, Councilman Absent Billy Sharp, Councilman Present Joe Agnew, Councilman Present Tom Bogan, Councilman Present John Dillard, Councilman Present Joel Marks, Mayor Pro-tem Present and with six present, a quorum was established and the following items were addressed: 1. PLEDGE OF ALLEGIANCE 2. CITIZEN INPUT - None 3. PRESENTATION TO FORMER COUNCILMAN ROB BURCHARD Mayor Manning presented former Councilman Rob Burchard with a plaque in appreciation of his time given to the city while serving on council from May 1990 to May 1992. 4. PRESENTATION OF EMPLOYEE RECOGNITION AWARDS Mayor Manning and Margaret presented the following employees with awards recognizing their service to the city: Charmyne Crowe, Finance Department - 3 years Bob van Til, Administration - 5 years Bill Hall read the names of other employees who will receive awards but who were not present at the meeting: Bernard Childs - 8 years, Doug Peach - 8 years, Johnny Morrow - 3 years, and David Crawford - 2 years. 5. CONSENT AGENDA - Mayor Manning summarized the items on the Consent Agenda. 2 004418 A. CONSIDERATION OF APPROVAL OF THE MINUTES OF THE COUNCIL MEETING HELD JULY 6, 1992 - - Motion to approve the minutes as written - Bogan; Second - Dillard. The motion carried with a unanimous roll call vote. B. CONSIDERATION OF ACCEPTANCE AND AWARD OF BIDS FOR THE PURCHASE OF BREATHING APPARATUS EQUIPMENT AND APPROVAL OF AN ORDINANCE AUTHORIZING A CONTRACT FOR SAME Councilman Sharp asked Chief Morrison why the department waited so long to purchase these items, when they were so desperately needed and approved in the budget last year. Chief Morrison said there were several capital items approved in the last budget and they had to be prioritized, noting the air compressor was just purchased, which had to be acquired before these items. The chief went on to say we cannot make all the purchases in October. Councilman Sharp said when a department needs equipment he would like to see it purchased in a more timely manner. Motion to accept and award the bids as recommended and to approve an ordinance authorizing a contract for purchase of breathing apparatus equipment - Sharp; Second - Agnew. Motion carried with a unanimous roll call vote. 6. PRESENTATION OF 1992-93 MUNICIPAL BUDGET Bill Hall read the budget letter in its entirety (See Attachment "A"). Mr. Hall noted that the certified tax roll will not be received until July 25, ten days after the required date to file the budget with the City Secretary. He said this budget is therefore based on the preliminary tax roll, which could go up or down, stating he is hopeful it will go up. Mr. Hall went on to say we are working with TML regarding insurance rates and if possible, we will not go out to bid for insurance this year. Going on, Mr. Hall said if this happens, we will save substantially. Councilman Marks asked how the city stands on ad valorem taxes if the budget is approved as presented. Mr. Hall said staff is not presenting a tax increase at this time, noting that more affluent cities are tight also and that we are no different, citing source of revenue as a problem. Mr. Hall said the 92-93 overall budget is lower than the budget that was presented in 91-92. Mayor Manning asked the City Secretary to get a schedule from each couneilmember so he could determine when budget work sessions could be called. 7. CONSIDERATION OF UTILITY FUND SEMI-ANNUAL BOND PAYMENT James England, Finance Director, stated the Utility Fund has a semi-annual bond - 3 004419 payment due in the amount of $1,913,793.70 (including principal and interest) on August 1, 1992. Mr. England said included in the funds to pay this expenditure is a budgeted cash transfer of $800,000 from the Operating system to the Debt Service fund. Going on, Mr. England said early summer rains has caused water revenue to be low resulting is a slow cash flow accumulation in the Operating System. Using overheads, (See Attachment "B") Mr.1 England explained to the council why it may be necessary to transfer cash in the amount of $200,000 from the land fund to the systems fund for operational requirements. Mr. England said the Utility Fund Bond Ordinance requires cash for two months operating expenses be held in reserve at all times, which is an amount of $450,000 and a Utility Fund cash flow analysis indicates the estimated cash balance will be only $300,000. Mr. England went on to outline the Utility Fund Revenue Analysis, and the Land Fund projected cash balance. Mr. Hall noted that interest income on the land fund and investments has dropped drastically each year which accounts for some of this shortfall. Mr. England said this amount will be paid back at the end of the 91-92 fiscal year if the water revenues increase enough to allow for reimbursement. Motion to approve the transfers as recommended - Marks; Second - Sharp. Motion carried with a unanimous roll call vote. 8. CITY MANAGER'S REPORT 1. Golf Course - Hopefully the contract document will be done within the next two weeks, and will have the concerns of the Corps and the developer addressed. 2. Eastvale Sewer System - the project is complete and residents are tying onto the system. Mayor Manning said he had received a call regarding W. Lake Highlands stating it is very rough. Bill Hall said we do have a proposal from the contractor to re-surface, but he (Hall) has a problem with that not being covered under the contract and is checking on that. Mayor Manning said there will be a Special Session of Council at 3:00 p.m. July 23, 1992. With no further business to address, Mayor Manning adjourned the meeting at 8:20 p.m. William W. Manning, Mayor ~ ATTEST: Patti A. Hicks, CMC/AAE City Secretary 4 ATTACHMENT THE OLOR¥ CITY BY THE LAKE TO: MAYOR MANNING & MEMBERS OF THE CITY COUNCIL FROM: BILL HALL, City Manager JAMES ENGLAND, Director of Finance RE: ANNUAL BUDGET, FISCAL YEAR 1992-1992 DATE: JULY 15, 1992 Attached for your review and subsequent planning is the Preliminary Operating Budget for the City of The Colony for fiscal year 1992-93. This budget has been prepared on the needs and requests of City Department [leads to maintain the present level of services with only minor program improvements included. This document does not include any capital improvements, capital purchases or additional personnel. As in prior years, revenue projections are based on a conservative projection and expenditures have been reviewed on an individual "first-round" basis. An additional note of importance is that of Ad Valorem Tax Revenue. This revenue source is provided by the Denton County Central Appraisal District and by law is not submitted to the City until July 25th of each calendar year as a Certified Tax Roll. For budgetary preparation purposes, a Preliminary Roll is submitted prior to that time, which has historically reflected a lower assessed value than the final Certified Roll! This, however, is not a definite and potentially, this assessed value could remain the same or be lowered. Therefore, good financial management practices dictate that for budget preparation purposes, the preliminary roll is utilized for revenue projections. The Preliminary Roll for this fiscal year is $516,280,511.00, approximately $6,000,000.00 less than the prior year's Certified Roll. The attached Preliminary Budget Document, by Charter, has been filed with the City Secretary on July 15, 1992. The total City budget reflects expenditures of $12,926,040.00 and projected revenues of $12,923,073.00, which will dictate a marked reduction of line item expenditures. 5151 North Colony Boulevard The Colony, Texas 75056-1219 (214) 625-1756 00442i While Staff has completed several reviews and reductions, we will be seeking guidance from _ Council at forthcoming Budgetary Work Sessions for your priorities and those of your constituents! Again, myself and Mr. England will continue to work on the budgetary process and keep you apprised of changes to projections and expenditures prior to the first City Council Budget Work Session. Respectfully Submitted, William M. Hall City Manager James England Director of Finance /SS Annual Budgct, F'acal Ye, ar 1992-1993 July 15, 1992 Page -2- · 004422 ATTACHMENT "B" UTILITY FUND SEMI-ANNUAL BOND PAYMENT' AUGUST 1, 1992 00442,3 UTILITY FUND CASH FLOW ANALYSIS CASH BALANCE - JUNE 30, 1992 $1,100,000.00 TRANSFER TO DEBT SERVICE - JULY 31, 1992 800,000.00 ESTIMATED CASH B~CE $ 300,000.00 * *UTIIITY FUND BOND ORDINANCE REQUIRES CASH FOR TWO (2) MONTHS OPERATING EXPENSES TO BE HELD IN RESERVE AT ALL TIMES. TWO MONTHS OPERATING CASH REQUIRED TO BE HEM IN RESERVE IS $450,000 FOR THE 1991 - 92 FISCAL YEAR PROJECTED EXPENSES. 0044,24 UTILITY FUND CONTINGENCY PLAN MAXIMUM OF $200,000 AVAILABLE TO TRANSFER FROM LAND FUND TO SYSTEMS FUND FOR OPERATIONAL REQUIREMENTS. THIS TRANSFER IS A CASH TO CASH TRANSACTION THAT WILL BE REPAID AT THE END OF THE 1991 - 92 FISCAL YEAR AFTER THE SYSTEMS FUND HAS GENERATED ADDITIONAL NET INCOME. 004425 UTILITY FUND SEMI-ANNUAL BOND PAYMENT AUGUST 1, 1992 ACTUAL 1991-92 BUDGET PAYMENT DUE $1,913,400 $1,913,400 FEBRUARY 1, 1992, PAYMENT 718,713 718,713 TOTAL DEBT SERVICE PAYMENTS $2,632,113 $2,632,113 TAX REVENUE - JUNE, 1992 $ 590,000 $ 581,288 DEBT SERVICE - JUNE, 1992 3,200 0 F & J CONTINGENCY FUND 135,000 125,000 LAND FUND 400,000 400,000 SYSTEMS FUND * 800.000 800,000 TOTAL $1,928,200 $1,906,288 * CRITICAL CASH TRANSFER UTILITY FUND REVENUE ANALYSIS AUGUST 1, 1992 1991-92 1991-92 PERCENT CLASSIFICATION BUDGET PROJECTED CHANGE Water Service 2,350,000 2,250,000 (4.26%) Sewer Service 1,400,000 1,575,000 12.50% Reconnect Fees 10,000 12,000 20.00% Penalties 60,000 72,000 20.00% Tap Connection Fees 5,000 5,000 0.00% Vehicle Services 100,000 100,000 0.00% Investment Income 45,000 35,000 (22.20%) Miscellaneous 10.000 14.000 40.00% TOTALS 3,980,000 4,063,000 2.09% 00442V LAND FUND PROJECTED CASH BALANCE BAIANCE - JUNE 30, 1992 $1,800,000 BUDGETED CASH TRANSFER TO UTILITY DEBT SERVICE FUND - AUGUST 1, 1992 (400,000) SUB-TOTAL $1,400,000 POSSIBLE CASH TRANSFER TO UTILITY SYSTEMS FUND - AUGUST 1, 1992 (200,000) REMAINING BALANCE - AUGUST 1, 1992 $1,200,000 ' 00442 3 . CITY OF THE COLONY FINANCIAL CONSULTANTS 1. BOYD LONDON - FINANCIAL ADVISOR SENIOR VICE-PRESIDENT FIRST SOUTHWEST COMPANY 2. GEORGE SCOT'F - EXTERNAL AUDITOR PARTNER DELOITYE - TOUCHE BOARD MEMBER GOVERNMENTAL ACCOUNTING AND AUDITING AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS