HomeMy WebLinkAbout10/06/1992 City Council MINUTES OF THE CITY COUNCIL MEETING
HELD ON
OCTOBER 6, 1992
The Special Session of the City Council of the City of The Colony, Texas was called to order
at 7:00 p.m. on the 6th day of October, 1992 at City Hall with the following Council roll call:
William W. Manning, Mayor Absent
Mike Lynch, Councilman Present
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. PUBLIC HEARING REGARDING A PROPOSED TAX INCREASE OF $.05
CENTS PER $100 VALUATION
Motion to open the Public Hearing - Lynch; second - Sharp. Motion carried with all
members voting Aye.
Mayor Pro-rem Marks stated the budget had been approved with a $.02 cent tax
increase and that this hearing is due to a proposal by Council to increase the taxes another
$.03. The Council did not wish to speak at this time, so the Mayor Pro-rem opened the
floor to citizen input.
Charles Davis, 5644 Turner, told the council he had lived here 8 years and felt he
had been deceived by lots of people, including the city and F & J. Mr. Davis said he is
retired and on a fixed income and noted that young people are not making as much money
now, and that everyone has a tight budget. Mr. Davis said he wants to keep his home in
The Colony, but if the taxes keep going up, he will have to sell. Mr. Davis said he believes
city government needs to tighten its belt too, noting that he sees a lot of waste.
Councilman Sharp said if the city stays with the $.02 increase only, then $160,000 -
$170,000 more in cuts will have to me made. The Councilman went on to state the original
budget as presented called for a $725,000 in transfers from contingency and the adopted
budget only called for $375,000 in transfers, and asked Mr. Davis for suggestions on
additional cuts and observed waste. Mr. Davis said there are too many police cars, he sees
city vehicles in other cities, etc. Mr. Davis said he followed a city vehicle as it traveled
across the city from one location to another, but never saw any work performed. Going on,
Mr. Davis said more people could be cut since major projects are contracted (at a premium
price). He said he would like to review a city budget so he can see where the money is
going.
Councilman Dillard responded that major projects are bid and contracted because
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it is most prudent, noting that people have been cut and went on to say the council and the
citizens must think of two years from now, stating that if we do not increase taxes now and
make cuts, we will be out of money in two years. Mr. Davis suggested going back to the
budget and looking at more cuts. Councilman Dillard said the city has had a limited
number of tax increases, and noted that the County Education District has the highest rate.
Mr. Davis said he is fighting for his home. Councilman Bogan said the council sympathizes
with him, and noted the work put in on this budget is double what any previous council has
spent on budgets, going on to say that no one wants a tax increase. Councilman Bogan said
the city has been taking money from savings accounts; over 1 million dollars in the last year,
and that's bad business. The Councilman went on to say there were no salary increases,
people were cut and stated the decisions were not easy but the council had to be
responsible.
Mayor Pro-tem Marks said all the council worked hard to cut the original $725,000
in transfers to $375,000, going on to say councils in the past transferred from contingency
and that is why he is against the proposal to increase taxes more. The Mayor Pro-tem said
he hopes things will change this next year for the better, but noted that if they do not then
next year the city will have to cut services.
Councilman Agnew noted the County Education District (C.E.D.), L.I.S.D. and the
City tax bill last year was a total of $2.46 per $100 valuation and even if the city increases
to $.05 the total goes down to $2.40 per $100, going on to say that is a net decrease of $.06
in taxes this year. Councilman Agnew went on to say the council spent many hours working
on the budget and that it is not responsible to take money out of the savings . The
Councilman said he was sure those present had heard about proposed cuts, but said no one
wanted any less fire fighters, and that he did not see anywhere else to cut the budget.
Councilman Agnew said he agrees with the additional $.03 and he too hopes next year is
better.
Margaret Wright, 5425 Slay, asked if gasoline for police cars had been cut. Mr. Hall
said that staff is looking at the take-home car policy, but that no action will be taken on that
until a new police chief is hired. Mr. Hall said the initial intent was for quick response and
high visibility, but he noted the city has reached a point where we have to question if the
program is necessary. Discussion followed regarding the take-home car policy and how it
works. Councilman Agnew noted there were new police cars in the budget this year.
Rob Bauman, 4173 Newton, said the council has to stand behind their convictions,
going on to say he does not want a tax increase, but that he thinks it is necessary. Mr.
Bauman said he has done some research and does not see where any more cuts can be
made, and that he is not sure $.05 is enough.
Chris Cox, 5957 Carroll, commended the council on doing an awesome job on the
budget by making drastic cuts. He said he appreciates the kind of initiative shown, noting
that with a $.05 increase the city is still in the hole. Mr. Cox said people don't quite
understand the earlier mentioned proposed "drop dead" date of 1994-95. Going on, Mr. Cox
suggested sharing statistics with the citizens so they better understand this is serious
business. Mr. Cox said he knows the city needs improvements, but also said we need to be
realistic. Mr. Cox said there is really only one place to cut for impact and that is personnel.
Encouraging the council to keep up the good work, Mr. Cox said any solution will make
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someone unhappy.
Kay Stokes, 5224 Hendrix, said nobody wants a tax increase, we know it is going to
happen and asked the council to please not ever consider cutting police and fire. Ms. Stokes
said the police cars in the neighborhoods do help cut crime, noting police officers are on
call 24 hours a day.
Lou Gomez, 5081 Shannon, said the Council did a heck of a job and referenced a
"Center Stage" flier which had been distributed. Mr. Gomez said it is full of untruths and
misinformation and noted the group has not filed as a Political Action Committee in the
City Secretary's office. Going on, Mr. Gomez said the tax comparison found in the
publication is not enough, noting The Colony cannot possibly stack up to older, well
established cities. Mr. Gomez said the city is a non-profit organization which takes money
in and puts it back into services for the citizens. Again, Mr. Gomez commended all the
council, noting especially that Councilman Dillard had done a great job.
Wanda Pazoda, 5644 Twitty, made several statements about the cost of ambulance
repair and the condition of the city's ambulances, as well as the take-home car policy in the
police department, questioning the cost of liability insurance for patrol cars. Ms. Pazoda
said she is not in favor of that policy, noting everyone else has to pay for their own gasoline,
insurance, etc. Ms. Pazoda said the city should pass a 1/2 cent sales tax for city services,
and that the employee survey should be done internally by the Personnel Department,
instead of using an outside consultant. Ms. Pazoda said she does not want a tax increase,
but that the council should ask the citizens for a 1/2 cent sales tax. Ms. Pazoda went on
to say that people in The Colony go to Plano or Lewisville to do their shopping, and that
we should have everything right here in The Colony. Bill Hall responded, stating the
outside consultant was hired as a result of a consensus of council and staff, noting that three
in house surveys have been done in the past 9 years which were responded to with fear of
retaliation. Mr. Hall said even though the fear could not be removed, the surveys were
constructive and have resulted in some positive changes. Going on, Mr. Hall said the
outside firm has resources the city does not and the employees are more likely to talk to a
third party. Mr. Hall also noted that our Personnel Department is made up of one full time
person and one person who is shared with another department.
Referring the 1/2 cent sales tax, Mr. Hall said the recent election which was to adopt
a 1/2 cent sales tax for economic development, was sponsored by The Colony 2000, a
committee of the Chamber, and if it had passed, the money could only be spent for
economic development. Mr. Hall explained that municipalities can only adopt the 1/2 cent
sales tax for special projects, and that the monies cannot be put into the general fund for
operations. Ms. Pazoda said the homeowners are the city's only source of revenue and we
cannot continue to choke them, therefore expenses must be cut.
Going on to respond, Mr. Hall said the police and fire personnel carry their own
additional insurance in order to drive the city vehicles. Ms. Pazoda then stated there is no
motivation in the police department, and asked why the chief is not chosen from within.
Drucilla Secor - 5212 Hawse, agreed with Ms. Pazoda and said if people can't get
something in The Colony then they don't need it, going on to say we should keep our
business at least in Denton County. Ms. Secor said the P & R budget has been cut to the
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bone and works with zero most of the time. Going on, Ms. Secor said the city needs to use
the resources at hand, for example, the Seniors. Ms. Secor also said the Civic Center needs
some re-working, noting the bathroom was remodeled to accommodate persons in a wheel
chair, but it was not done right. Ms. Secor said she is against the tax increase at this time,
stating she is also against the take-home car policy, the outside consultant and Judge
Williams.
Bob Woodard, 4924 Watson, complimented the efforts the council has put into the
budget and then asked 3 questions:
1. At what point did we discover that we are in a deficit spending procedure? Mayor
Pro-tem Marks said the council has been transferring money from contingency for 6 years
to balance the budget. Mr. Woodard asked if this tax increase is to stabilize the contingency
fund and the Mayor Pro-tem said yes, it is to eliminate draws from the contingency.
2. What is the primary purpose of the contingency fund? Mayor Pro-tem Marks said
it is a savings account to be used for emergencies.
3. Is it accurate to say that at the current rate of $.77, $375,000 will be transferred,
if the tax is increased to $.80 we will still have to transfer $150,000 to break even in 92-93?
Mr. Woodward said the tax increase seems inevitable and that he is comfortable with
the work the council has done.
John Lower, 4429 Larner, said he had come to the meeting angry and had heard
several people comment that things might get better and asked in what ways that might
happen. Mayor Pro-tem Marks said there had been lots of rain this past year, which cause
lower water revenue, interest is so low that our investment income is at it's lowest ever and
this is an election year, which is always bad. The Mayor Pro-tem said he believes the
coming year will be better, but noted again, that if it is not, then the city may need to make
more budget cuts. Mayor Pro-tern Marks went on to say he cannot tell the citizens there
will be a specific development, but he did say the council will be actively pursuing
businesses. Councilman Sharp agreed, stating that the expansion of SH 121 will make The
Colony more accessible.
Mike Stanfield - 4925 Crawford, said he is disappointed in the Council, stating the
goal is to pay city expenses with taxes regardless of the prior councils' actions of using an
artificial base. Mr. Stanfield said maybe the city needs to back up to where that base really
is and make cuts to get the budget back to that point, noting there is lots of waste. Mr.
Stanfield went on to say he is disappointed in all the council because the city has over spent
and departments should be told to cut expenses. Mr. Stanfield reminded the council that
all of them will have to run for re-election and will have to answer questions about voting
for the tax increase, when maybe it was not necessary. Mr. Stanfield suggested another hard
look be taken.
Councilman Dillard said the budget meetings were not held behind closed doors,
noting the process, which started in August included a series of open meetings and the
citizen input was nil. Councilman Dillard went on to say that to make the biggest impact
on this budget if necessary today would be to cut personnel and to get the kind of money
we need would require (cutting) 1 out of 5 employees, and the council would have to decide
who to let go. Councilman Dillard said the budget as it is now represents a small loss in
number of employees and a small tax increase, noting the tax could possibly be reduced at
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some future time.
Councilman Sharp also responded to Mr. Stanfield, stating that if the tax was rolled
back to the amount it was when transfers began, then almost 1/2 million dollars would have
to be cut, not just $150,000.00. Mr. Stanfield asked if the council is telling him that they
cannot balance the city budget and Councilman Sharp said no, the budget is balanced, but
to do it without transfers at this point would require cutting people. Mr. Stanfield said he
understands what is being said, but he is not sure that is not just a scare tactic, and asked
those in the audience if their employer would hesitate to cut them if it was necessary.
Going on, Mr. Stanfield said he thinks the threat of cutting people is just a panic argument.
Councilman Dillard stated it is not a panic argument and that he resented that statement.
Mr. Stanfield asked about next year and said he was not sure he believed the council.
Councilman Bogan told Mr. Stanfield he could have been at the budget meetings and had
input and offered solutions.
Mayor Pro-tem Marks said this problem can't be solved in one year, and that it has
to be done in a step plan, but the process has to be started now. Mr. Stanfield asked the
council if they can promise a balanced budget next year, noting that this tax increase will
not balance the budget.
Councilman Bogan stated that Mr. Stanfield is an informed citizen, yet he offered no
solutions to the problems at hand. Going on, Councilman Bogan said he believes the
council has made good management decisions, including many cuts.
Mr. Davis asked why the people cut were on the bottom of the pay scale, noting that
one manager could be cut and 2 lower scale employees could be kept.
Councilman Agnew said two high level positions have been cut and combined into
one, noting that most of the positions cut were already vacant and therefore not refilled.
Continuing, Mr. Davis said he would be willing to pay more taxes if he thought the money
was doing what it is supposed to do, and then asked why we needed a brand new animal
shelter and why the animal control patrol was stopped.
Toby Pollard, 5401 Sutton Place, said he has attended some of the budget work
sessions and watched the council struggle to handle these problems. Mr. Pollard said he
does not believe the citizens realize the extent of this situation, noting there are still
problems in the budget, that there has been good progress and that we are running out of
time. Mr. Pollard said the city will probably have to make more cuts and another tax
increase next year and told the council he appreciated their efforts.
Ken Wood, 5000 N. Colony. said he agrees with some things and disagrees with
others, but he said if we don't lay people off, they will leave anyway because of low salaries.
Mr. Wood said we all have to pay the price, noting he doesn't like the idea of raising taxes,
but he would rather see that than a cut in service. Mr. Wood said he understands there are
no cuts in public safety but reminded all that there are two police officers leaving January
1, 1993 who will not be replaced. He said there is more at stake than raw numbers and told
the council to be careful when making cuts.
James Link - 5525 Ragan Dr., asked if the tax increase is to keep from transferring
the $375,000 and if so, what will happen next year. Mayor Pro-tem marks said if all stays
the same as it is now, then next year there will probably be more transfers necessary, which
is why if we continue on our present course, the city will be out of money in 1994-95. Mr.
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Link asked what the council hopes will happen to keep the city from going broke.
Councilman Bogan said hopefully the revenues will increase, noting this is a fix, not a cure.
Mr. Link suggested making a public call for volunteers to take up the slack. Bill Hall said
the city is always looking for volunteers, reminding everyone that this city has run with the
help of volunteers since the beginning. Mr. Link said he doesn't like the tax increase, but
if that's what it takes, then the council should do it.
Councilman Lynch said a tax increase is never easy; everybody sees it with a different
perspective, noting the city is made up of many departments and the council had to decide
who and what would get cut. Councilman Lynch said the council has worked since August
on the budget, which was presented with capital requests in the amount of 1.8 million
dollars and reduced that amount to $100,000. Councilman Lynch went on to say the council
could go back and cut another $400,000 but asked what should go, the Library, the Pool,
stating the council feels this is the best option.
Councilman Lynch said 1.7 million dollars has been cut from the budget, noting that
you can always find waste. Addressing the rumor of cutting 3 fire fighters, Councilman
Lynch said there will be no cuts to fire personnel, noting that we are trying to open Station
No. 2. Councilman Lynch said this process helps to stop the hemorrhage, but more will
have to be done next year. Going on, Councilman Lynch said the council and the
department heads know the city is in a crisis and went on to say the if councilmembers get
voted out because of voting to raise taxes, then those who are elected should be thankful
that this council gave them the tools to work with.
Councilman Lynch went on to say the citizens can help by supporting businesses in
the city. He said we are at a place where raising taxes is just a step, and to really balance
the budget would take a 9 - 10 cent increase. Councilman Lynch said this was not easy and
commended all the council for their effort, noting all the members of council pay taxes too.
The Councilman told the public that the budget will be monitored all year and that if
desired those reports can be made available to the citizens.
John Mitchell - 4301 Queen Cir., thanked all those who put aside politics to propose
a tax increase, stating he appreciates their (council) courage and that he supports them and
is for the tax increase.
Councilman Bogan thanked all for coming to the hearing.
Motion to close the public hearing - Agnew; second - Bogan. Motion carried with all voting
Aye.
With no further business to address, Mayor Pro-tem Marks adjourned the meeting
at 9:28 p.m.
Jo~/Marks,~layor Pro-tem
ATTEST:
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Patti A. Hicks, CMC/AAE,City Secretary
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