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HomeMy WebLinkAbout06/17/2009 City Council June 17, 2009 MINUTES OF WORK SESSION OF COUNCIL HELD ON JUNE 17, 2009 The Work Session of the City Council of the City of The Colony, Texas, was called to order at 7:03 p.m. on the 17`h day of June, 2009, at City Hall, 6800 Main Street, The Colony, Texas, with the following roll call: Joe McCourry Mayor Present Allen Harris Councilmember Absent Richard Boyer Councilmember Present Jeff Connelly Deputy Mayor Pro tem Present Kirk Mikulec Mayor Pro tem Present Perry Schrag Councilmember Present Joel Marks Councilmember Present And with six council members present a quorum was established and the following items were addressed: 1. City council and city staff to meet and discuss future goals and objectives for the city, and determine council priorities for the next three years. Discussion may include but not be limited to: development, infrastructure and capital projects, public safety, beautification, finance and budget issues, and tax rate. Mayor McCourry stated he wanted to put together a 2-3 year plan for the city, set future goals and establish how to achieve those goals. He then turned the meeting over to City Manager Dale Cheatham. Dale stated council had been provided copies of a handout submitted by Councilmember Harris giving his comments regarding items from the council packet. Dale specifically asked council for direction regarding the tax rate or strategy the council would like to see in next year's budget, any items the council would like to have included in the budget, and direction the council would like to take on the Police/Courts Building. Overview Presentation: Dale thanked the Economic Development Corporation (4A) for their funding agreements that could allow the city to move forward with the Police/Courts Building. Dale stated the total cost for Phase I is approximately $6 million dollars. Dale presented council with an option for funding the debt service costs associated with the project over the next few years. Based on the information presented, Dale said the city would not have to come up with additional revenue funds for the project until the 2012-2013 budget. Dale recommended the city move forward on Phase 1. 1 June 17, 2009 Dale then stated according to the Denton County Appraisal District our tax roles are up 9.21 He cautioned that this rate is subject to change as the year continues and said he estimated the final tax role to reflect an increase of approximately 4%. Development and permit revenues are holding while municipal court revenue has gone down. Dale reminded council that revenue received from Matthews Southwest will begin to come down and that rebate payments to The Tribute will be due next year. Dale explained the expenditures for next year would also include an increase in the city's contribution to TMRS, a possible increase in employee health insurance rates, an increase in the overtime costs in the Fire Department due to vacancies, and an increase in debt utility service costs. Dale said he was not in favor of an increase in the utility rates for next year. Dale also addressed the addition of the following positions in the near future: • Jailers (3) - once Phase I is completed $145,000 • Police Officers (2) $140,000 plus $36,000 for vehicles • Dispatcher (1) $50,000 • Fire Battalion Chiefs (3): Option 1 - $265,000/reclassify Captain/Lieutenant positions and hire 3 Firefighters Option 2 - $40,000/reclassify Captain/Lieutenant positions only • FT Communications Director • FT Assistant to the City Manager Fund Balance: Dale stated in the past the city has had more than the 60-day minimum in our fund balance. As of March 31, the city has 96-days in the general fund balance and 99-days in the utility fund balance. These amounts do not reflect the money needed for the City Hall/Library roof replacement project. Dale asked council what they would like in the fund balance as we move forward and to provide direction regarding the tax rate. Councilmembers Connelly, Marks, Mikulec and Boyer stated they would like to see approximately 75-days kept in the fund balance. Councilmember Schrag said he preferred the 90-days, but is willing to go with 75-days. Mayor McCourry stated he prefers 75-90 days. Several members of council asked the pros/cons of 75-days versus the 90-days in the fund balance, and the trade off of lowering the tax rate versus the impact on the city's bond rating on 75-days and 90-days. Council also agreed they would like to utilize the funds saved from drawing down the general fund balance for future projects. Property Tax Rate: Discussion followed regarding the tax rate. Mayor McCourry said he would like to see a '/2 cent reduction per year over the next 3-years and then to reevaluate each year to see if the tax could be 2 June 17, 2009 lowered even more. Councilmember Marks stated he doesn't want to run into the situation where taxes are lowered and as a result needed repairs/improvements can't be done. He would like to get started on these projects. Councilmember Connelly said he would like to continue to lower taxes so the city is more attractive to businesses and brings in more visitors/citizens. Councilmember Schrag stated the city usually sees some revenue increase due to growth. He said he favored lowering the tax rate if the city can balance it out with the increase in revenue. Councilmember Boyer said council should set a target but realize that since you don't know what the future will bring you may have to be flexible. Councilmember Mikulec said he would like to work toward 67 '/2 cent tax rate. After much discussion, Council was in agreement they would like to start with a''/z cent reduction in the property tax rate for the proposed 2009-2010 budget and set a goal of a'/z cent reduction per year over the next 3-years. Police/Courts Building: Assistant City Manager, Tony Johnston, and Police Chief Joe Clark, presented various building phase options to city council. Chief Clark stated the cost is $11.5 million if all phases of the project are completed at once. The cost of the project is $12 million if completed in phases. Council agreed to moving forward with Phase I & IA. Park Maintenance Building: Council and staff discussed the construction of a new Park Maintenance Building Expansion at Five Star. Council directed staff to move forward with the Park Maintenance Building Expansion project at Five Star, with joint funding from the Community Development Corporation. The Mayor asked staff to present a recommendation for use of the current property once the expansion is completed. Library Hours for Sundays and Upgrading Electronic Resources: Library Director Joan Sveinsson stated patrons have requested the use of the Library on Sundays for many years and that Sundays are very busy days for area libraries. She also stated when the city reaches a population of 50,000 we would be required to meet additional hour requirements per state regulations. Joan presented information regarding staffing and the needed funding to accommodate the extra hours for year round use or school year use. Council agreed to budget $26,000 for Sunday hours (year round) and $5,000 for electronic resources. 3 June 17, 2009 Recreation Center Hours for Sundays: Parks and Recreation Director Pam Nelson said she had received requests from volleyball and basketball teams to use the Recreation Center on Sundays for practices. It was allowed on a trial basis with charging a reduced rate to cover staff costs. Pam presented information regarding seasonal use and year round use. Council directed staff to continue as they have regarding rental of the Recreation Center on Sundays. Stewart Creek Park: Mayor McCourry stated although it is a heavily used park, only basic maintenance is currently being done at Stewart Creek Park. Council and staff discussed the development of a master plan for Stewart Creek Park. Don Beckel, President of the Community Development Corporation, stated the CDC would like to see a Stewart Creek Park Master Plan developed and he would also like to hire a consultant to suggest how to better utilize the park. Council expressed they would like to see funding from the CDC to have a Master Plan developed for this park and to see it as a top priority in the park system. Economic Development Incentives for Development: Mayor McCourry stated his concern that the Economic Development website needed to be more positive and challenged the city to be more aggressive in bringing in businesses to fill our "small spots". Tom Terrall, Economic Development Director, stated staff always follows up on potential leads and that the economy has really had an impact on businesses. Dale and Tom stated many times a broker contacts staff with initial questions, however staff is not always allowed the opportunity to present additional information and possible incentives. After much discussion, council directed staff to review the website and for the Economic Development Corporation (EDC) to continue to be aggressive regarding incentives for potential businesses. Fire Battalion Chief Positions: Fire Chief Scott Thompson stated an increase in the minimum staffing levels would need to be considered within the next few years. Also, when planning ahead the Chief asked if council wished to close Central Fire Station once all other stations were built. Mayor McCourry stated he did not see any changes in the next 3 years. Councilmember Connelly asked Chief Thompson to provide his staffing recommendation for when all fire stations are built. He also stated current fire personnel are firefighter/paramedics. He asked 4 June 17, 2009 if this was a practice the city should continue or consider having a combination of some firefighter/paramedic positions and some firefighter only positions. General: Police Chief Joe Clark reminded council his request for patrol officers, jailers, and a dispatcher are minimum staffing standards. Due to the late hour, Mayor McCourry recommended having another meeting to continue discussions. And with no further business to discuss the meeting was adjourned at 11:13 p.m. APPROVED: li J McCou ,Mayor ity of The olony ATTEST: JiAli,i Christie Wilson, TRMC, CMC City Secretary - ~a 5