HomeMy WebLinkAbout08/07/2002 City Council MINUTES OF WORK SESSION OF COUNCIL
HELD ON
AUGUST 7, 2002
The Work Session of the City Council of the City of The Colony, Texas, was called to
order at 6:40 p.m. on the 7th of August 2002 at City Hall, with the following roll call:
Bernetta Henville-Shannon Mayor Present
John Gordon Councilmember Present
Lewis Jue Councilmember Present
Joe McCourry Councilmember Present
Lynda Bayliss Councilmember Present
Perry Schrag Councilmember Present
Joel Marks Councilmember Present
And with seven present a quorum was established and the following items were
addressed:
1.0 Review and discussion of the municipal budget fy 2002-2003
Tony Johnston, Asst. City Manager explained the projected revenues to
the city council. Mr. Johnston discussed the effective tax rate and the roll back
rate. He went on to say that in the year 2007 the MUD debt would be gone and at
time the council and city manager would have to decide how to handle those
funds.
Mr. Johnston said the staff is projecting a very conservative 5% increase
in sales tax for next year. He said that we know building permits will be down and
the projection is only $355,000. Mr. Johnston said the city must concentrate on
commercial building.
Rebecca Koo, Finance Director, went over the franchise fees, explaining
they make up 12% of the total budget. She said that staffis projecting 7% increase
for next year.
Mr. Johnston then discussed some special funds; Parks & Recreation
revenue, tower rentals and the Fleet Services Fund. He advised council that a
study of the fleet services department would be brought to council on August 19,
2002. Mr. Johnston stated that inspection fees slowed down after September 11,
but they have picked up slightly. He said the projection for next year could be
increased from $26,600 to 40,000. Mr. Johnston explained there is no revenue
from this fee, but we still need the inspectors for city projects. He said staff
proposes the inspectors be paid from bond funds.
Dale Cheatham, city manager discussed the Hidden Cove Park fund with
council, noting that staff is projecting a $535,000 deficit. He is hopeful that with
aggressive marketing and other activities we can pull the fund out of the hole. Mr.
Cheatham said he is concerned that if The Colony abandons the park we would
damage our relationship with the Corps of Engineers and any future development.
Mr. Cheatham recommended we use this next year to evaluate this program.
Mr. Cheatham said the hotel/motel tax fund is flexible and noted that some
of the money could possibly be used for the arts, however it has not been
August 7, 2002 1
00770,%
allocated at this time. He said a report is coming to council on August 19, 2002
regarding the arts.
Mr. Cheatham said he is not recommending any changes in the tax rate or
the water and sewer rates because of debt payments, a decrease in permits and the
cost to start three major projects, i.e. 5 Star, Fire Station 2 operations and a
transfer of $100,000 to Hidden Cove Park. He discussed the large of amount of
water, which will be needed to start up the 5 Star complex fields this next year.
He said staff would explore all options for irrigation of the complex in the future.
Mr. Cheatham covered the points in his budget memorandum (See
Attachment "A") and asked for questions from council.
Mayor Henville-Shannon, referencing a budget document she had
received at the senior center, asked why we were taking $5000.00 from the
senior's budget. Mr. Cheatham said staff would research this matter, but that he
believes it is the same $5000.00, which is paid to SPAN from city funds for
services rendered. Ms. Pam Nelson advised council that the senior's budget is
included in the P&R line items.
Councilmember Schrag expressed his opposition to the city giving funds
to the non-profit organizations. Councilmember Gordon said these agencies
provide services to our citizens and without these agencies; the city might have to
provide some of these services.
Councilmember Marks asked why we don't hire a health inspector instead
of using a contractor.
Councilmember Jue asked for information regarding hiring a staff city
attorney. Mr. Cheatham said it would be at least $100,000 per year. Mayor
Henville-Shannon said to look into it.
Councilmember Marks said he did not see any additional funding for
repairing of streets. He said I want to fix all the streets. There followed a
discussion regarding the current bond program and its direction. Mr. Leverich
explained how the current system is working, the bond programs and the current
method of repairing streets, sidewalks and alleys. Mayor Henville-Shannon said
we need to be repairing potholes with concrete, not asphalt. Mr. Leverich said
asphalt is a temporary fix so vehicles are not damaged. After a lengthy discussion,
Mr. Cheatham addressed the council stating they have to recognize that the city
will never be caught up with street repairs. He said there are two approaches. We
can put money into the budget and use it as far as it will go or we can identify
specific streets to repair each year.
Councilmember Jue asked Councilmember Marks if he agreed that the
current bond program should be left in place and that more money should be put
into Public Works budget for proper repair of streets. Councilmember Marks
agreed.
Mr. Johnston suggested the budget be left as is and that the staff bring to
the council a plan and cost for more street repair. Councilmember Gordon said the
council could raise taxes by one cent and use the money to repair streets. Mayor
Henville-Shannon said she thinks we can adjust the budget to accomplish what we
want to. Councilmember Gordon said he does not think there is (that much)
money in the budget. Mr. Cheatham advised council that to find the money in the
August 7, 2002 2
budget might mean cutting services and/or personnel. He said the council would
have to think about that. He further stated that we might have some flexibility in
the $14 million in bonds just issued. Mr. Cheatham said staff would bring some
options to the council.
The next budget meeting will be August 13, 2002 at 6:30 p.m. in the
courtroom at 5151 N. Colony Blvd.
With no further business to address, the meeting was adjourned at 9:50
p.m.
APPROVED:
ATTEST:
Patti A. Hicks, TRMC, City Secretary
August 7, 2002 3