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Home My WebLink About07/10/2000 City Council 0 0 7 3 9 ..' 7/10/00 MINUTES OF THE WORK SESSION HELD ON JULY 10, 2000 The WORK SESSION of the CITY COUNCIL of the City of The Colony, Texas was called to order at 7:10 p.m. on the l0th day of July 2000, at CITY HALL, with the following roll call: Bill Manning, Mayor Present John Gordon, Councilmember Present Lewis Jue, Councilmember Present David Stanwick, Councilmember Present A1 Garcia, Councilmember Present John Dillard, Councilmember Present Dave Kovatch, Councilmember Present and with seven present, a quorum was established and the following items were discussed: 1.1 Presentation and discussion of the 2000-2001 Municipal Budget Mr. Lambert recommended that the council hold three work sessions to discuss the proposed budget: Tonight to summarize the overall budget, fund balances, revenues and increases July 17 - General Fund Departments July 24 - Utility Fund Departments, other funds and final review. Following the outline (See Attachment "A" for summary) of the overall budget, Mr. Lambert advised the council that based on preliminary figures there would be a net increase in revenues of $1,465,521. Mr. Lambert discussed increases in several areas, i.e. non-departmental, city attorney, planning and health inspector. He also covered increases in the Utility Fund. Mr. Lambert is recommending three proposals this year dealing specifically with personnel: 3% Cost of Living Adjustment (COLA) $264,980; Merit Increases - $177,677; and 20 Year Retirement - $12,000. Council discussed whether the COLA should be budgeted or reviewed at mid-year, as it has been the past two years. The Personnel Committee will review this matter more thoroughly. Mr. Lambert then presented Utility Fund capital items being proposed: Replace cooling towers on 3 wells $ 195,000 Add Water Production Control System (SCADA) $1,300,000 Add Well #4 $1,000,000 FM 423 water line $1,500,000 Austin Ranch sewer line to Frisco $2,000,000 Mr. Johnston recommended that the next work session be used to discuss major changes in the budget instead of reviewing the budget line item by line item. Mr. Johnston then proceeded to go over revenues for General Fund, Utility Fund and other special funds. Mayor Manning reminded staff that an audit of Franchise Fees being received had 1 7/10/00 been requested by council. Mayor Manning asked that each page presented to the council during the budget process be dated and numbered. If the agenda for the July 17, 2000 regular meeting is not too heavy, the council will meet in the next budget work session to begin discussion of the General Fund departmental budgets. 1.2 Discussion regarding input to the SH121 Task Force concerning overpasses on SH 121 Task Force Councilmember Kovatch asked if the City should approach the 121 Task Force for cost estimates on building an overpass at Momingstar and SH 121. He said he doubts the overpass at Memorial Drive will ever happen and would like to know if an overpass at Momingstar and SH 121 is feasible. Councilmember Stanwick said that John Polster with ITS has been working on these issues and has been in communication with Buzz Elsom of TxDOT about this. Councilmember Stanwick suggested we discuss this with them before we go to the Task Force· Mr. Lambert said Hal Jones, engineer, had estimated an overpass at $2 - 4 million, but that Mr. Jones does not think them is enough right-of-way for an overpass at that location (Momingstar and 121). Mayor Manning directed the city manager to research this issue and bring back a report to council. With no further business to address, Mayor Manning adjourned the meeting at 9:35 p.m. APPROVED: ATTEST: Patti A. Hicks, TRMC/CMC/AAE City Secretary Memorandum To: Mayor and City Council Lanny Lambert, City Manager From: Tony Johnston, Finance Director ~'~_' Date: July 03, 2000 Re.: Preliminary Budget for 2000-2001 The preliminary budget is presented to you for your review and analysis. We met with all departments to discuss their base budgets, make modifications, and any corrections or adjustments for the upcoming year. Their individual enhancements were discussed, reviewed and prioritized. The highlights of this budget are: 1) Pay plan for all employees is at 3, 4,or 5% depending on performance. The estimated increases are $177,677 for the General Fund and $38,125 for the Utility Fund. 2) There are no anticipated increases for retirement but a 10% increase is included for hospitalization which adds up to $75,682 in the Gen. Fund and $11,016 in the Util. Fund. 3) Included in The General Fund's base budget are 6 police cars, which will keep the Police Department in line with their vehicle replacement program. The budgeted total is $132,000. 4) The ad valorem tax rate will be adjusted to $.745/$100 valuation (decreased by 2 cents). The preliminary tax mil is currently at $1,055,739,135. 5) Both the General Fund and the Utility Fund will be above a 60 working day reserve. The General Fund is at 77 days and the Utility Fund is at 72 days. The C-enetal Fund will have a $2,23g,043 fund balance before enhancements and the Utility Fund will have a $1,314,058 fund balance. 6) The Public Works DeparUnent has an additional $150,000 to handle street repairs. This cost will be for projects not on the street improvement bond programs. Equipment rental has also been increased by $17,120. 7) The Water Distribution Department has an additional $38,000 in this year's budget to continue their meter replacement program along with a $71,150 increase in nei'~ year's budget. This will bring the yearly allocation of meters up to $121,000. 8) The Utility Fund has been situated to handle the increase in additional water from Dallas Water Utilities, from 3.0 mgd to 4.5 mgd. This increased the budget by OU?'aug $122,622 in this year's current budget and $272,905 for next year. Also, $45,000 has been set aside for purchases of water from the City of Piano 9) The Utility Fund has also been adjusted to handle the associated cost to ~, participate with the North Texas regional plant in Frisco. The biggest portion will be paid from impact fees but $100,000 has been set aside from operations. 10) The Reserve Fund has been setup to handle the City's participation with Denton County in our S.H. 121-expansion project. This cost will be $262,000 for the next five years. 11) Both the General Fund and the Utility Fund will make transfers to their Vehicle Replacement Fund in this year and the 2000-2001 budget year. The General Fund has been increase from $50,000 to $65,000 while the Utility Fund stays at $50,000. 12) Both Vehicle Replacement Funds are at a capacity to handle vehicle replacements and are incorporated int° the next budget discussions. The General Fund's allocation of vehicles is $270,485 while the Utilities' allocation is $91,960. Recommendations: 1) Funding for enhancements and needed equipment can now be allocated m the appropriate operating funds. This will do away with our short-term borrowing. 2) A 20-year bond issue be set up in the 2000-2001 fiscal year for needed street improvements and repairs. Funding to be received in Jan. 2001. 3) A mid-year review will take place on any salary savings for a possible cost of living adjustment (if the funds are available). 4) A 20-year retirement be set up. The initial cost will be approximately $12,000. 5) Continued enhanced customer service via education and training. 6) Five positions to be included in the next year's budget; A) Three police officers - via grant dollars B) E.I.T.- Engineer in training C) Deputy City Secretary Thank you for all the help and consideration going into this preliminary budget. Both City management and staff will be available these next three months to discuss, analyze, and review the budget for our 2000-2001 fiscal year. Special Dote: The 4-A and the 4-B budgets will be h~nded out at the budget workshops. We are still working on their preliminary numbers.