MINUTES
WATAUGA CITY COUNCIL
PRELIMINARY BUDGET WORKSHOP
MONDAY, JULY 18, 2005
CITY HALL COUNCIL CHAMBERS, 7101 WHITLEY ROAD
7:00 P.M.
Notice is hereby given that the City Council and staff of the City of Watauga, Texas will hold a preliminary budget workshop on Monday, July 18, 2005 in the City Hall Council Chambers, 7101 Whitley Road, Watauga, Texas at 7:00 p.m.
The City Council of the City of Watauga, Texas convened in a preliminary budget workshop on Monday, July 18, 2005 at 7:39 p.m. with the following members present:
Henry J. Jeffries Mayor
Richard Helmick Council Member
Pete Beierschmitt Council Member
Lee W. Griffin Council Member
Jerry Adams Council Member
and
Janina Jewell Finance Director
Nancy J. Meadows City Secretary
with
Council Members Koontz, Thomas, and Steele absent. City Attorney Mark G. Daniel was not required to attend the workshop.
Mayor Jeffries called
the workshop to order and turned the floor over to City Manager
Mr. Lacy then explained
that he had provided a preliminary draft of the different funds.
Mr. Lacy explained that
he wanted Council to know that he was currently considering a proposed fiscal
year budget to present, as required by the Home Rule Charter, on or before the
first day of August.
Mr. Lacy explained that
what he provided was only a rough draft, that he is still waiting on Tarrant
Appraisal District for final appraisal numbers, which will be received on July
25th. He explained that we
are also waiting on water and wastewater wholesale rates from the distributor,
which will be received on July 21st.
Mr. Lacy explained that
he would encourage any comments or suggestions that Council may have as they go
along through the process.
Mr. Lacy explained that
the budget is based on providing the current services at the best possible
level for the lowest cost.
Mr. Lacy explained that
the budget proposes a merit pay for performance increase this year, not to
exceed 3%, for all employees other than civil service employees, who will be on
a step plan, as Chapter 143 determines that, which it is done by tenure.
Mr. Lacy explained that
a package was being worked up with a new insurance provider. He explained that it appears that we can get
them to come in around nine percent. He
explained that we received a re-rate of forty-eight percent He explained that we changed and tweaked the
coverage and got it down to twenty-four percent. He explained that we went out for
quotes. He stated that right now the
city is looking at UniCare as the provider at a little under nine percent.
Mr. Lacy explained that
in the General fund we are projecting an ending fund balance of $3,850,316 Mr. Lacy explained that with the starting
fund balance and the revenues projected at $9,129,010, there will be
$12,971,226 in available funds in the General Fund. He explained that with the expenses at
$9,679,020 for Fiscal Year 2006, right now there is a 16% decrease from the
current budget in the proposed budget for next year in the General Fund.
Mr. Lacy explained that
in looking at expenses, there are some cost increases in Human Relations, due
to the Civil Service Commission appointing the HR Department Head as the Civil
Service Director, so a market adjustment would be in the budget for his duties
as HR Director and also to fill the position as appointed by the Civil Service
Commission.
Mr. Lacy stated that he
had also included about $50,000 for possibly going with an economic
development, consulting contract.
Mr. Lacy explained that
the budget includes a half time Municipal Court Clerk.
Mr. Lacy explained that
the Library has proposed a new part time intern. He explained that the Library would have some
lost and damages expenses and an increase in the Metro pack consortium.
Mr. Lacy explained that
in the Department of Public Safety, he would be looking at creating a third
Lieutenant position to work in patrol.
The Lieutenant would take the place of the Accreditation Officer, with a
slight adjustment.
Mr. Lacy further stated
that we are looking at trying an overall budget purchase of four vehicles this
year, electric vehicles with one in Parks, one in building maintenance for
janitors and two for meter reader vehicles
Mr. Lacy explained that
a new janitor was included for the new city hall.
Mr. Lacy added that a ½
ton pick up was included for Public Works.
Mr. Lacy stated that a
self- contained breathing apparatus was included for Fire and EMS.
Mr. Lacy explained that the budget leaves us
well within the fifteen percent. He
explained that it leaves over a $3,300,000 ending fund balance, which is well
above the fifteen percent target of $1,427,765.
Mr. Lacy stated that he
was going to let Janina speak about debt service. He explained that we have an opportunity this
year to issue $5,000,000 in Certificates Of Obligation and not increase the tax
rate. He explained that that would be a
part of his budget proposal that he would give them August 1st. Mr. Lacy explained that he would propose that
those funds be used for street improvements, put in a few extra dollars for the
animal service center, revitalize and remodel the current city hall for Public
Safety, and do the five thousand square foot addition to the Public
Library. He explained that would be in
his detailed proposed budget for next year.
At the request of Mr.
Lacy, Finance Director Janina Jewell explained that the proposed bond issuance
was for police, fire, EMS, animal control, Department of Public Safety usage to
convert the current city hall building and to get all the needed accessories
for that; library facility expansion, improvements, equipment and furnishings;
and street and sidewalk construction and reconstruction and all of the
equipment for that, and of course the expense to cover the issuance cost for
all of that.
Mrs. Jewell explained
that the current property tax rate is .58076 cents per $100 valuation. Mrs. Jewell stated that the I&S portion
of that rate is 1.719 cents per $100 valuation.
Mrs. Jewell explained that through the years ever so often we experience
a step down in the overall general obligation debt service. She further explained that this year we would
be experiencing one of those step downs, so it was an opportunity to go
forward, keep our tax rate the same, but still issue some debt to do these much
needed projects. Mrs. Jewell explained
that to keep the I&S Rate at 1.719 cents per $100 valuation, we were
estimating our values to come in at about 970 million on the 25th. She explained that we could issue five
million in debt to do all of these needed projects and keep the tax rate
level. Mrs. Jewell then showed Council
that they could see that on the sheet she handed out to them regarding the GO
Debt. She explained that there would be
about a $20,000 decrease in the Debt Service Fund Balance, but we need to do
that. Mrs. Jewell explained that there
was about $60,000 projected to go into next year and that does not need to be
that high. She explained that on the 25th
agenda there would be a proposal to issue intent to sell five million dollars
of Certificates of Obligation to cover these projects.
Mr. Lacy explained that
it was an opportunity for Council to keep up with their vision. He explained that when they hired him, they
told him specific projects they wanted to do: new city hall, animal shelter,
upgrade of current city hall for the Department of Public Safety, a 5,000
square foot addition to the library, and they wanted street
reconstruction. Mr. Lacy explained that
they have the opportunity to carry on that vision, the plan they had given him
and he added that he felt it was a good budget.
In closing Mr. Lacy
invited Council to come by and talk about the budget with him. He explained that he would have the proposed
budget out to them on or before August 1, 2005, with a cover letter and line
items. He explained that after they
receive the proposed budget there would be a workshop to go over everything in
detail. He explained that at that time,
Council would have an opportunity to make any changes they want to, to the
proposed budget that he gives them prior to it being presented to them for
adoption. Mr. Lacy further stated that
we would have a better handle on the tax rate and on the water and sewer rates,
by that time.
Mayor Jeffries then called
for questions and further discussion.
With there being none,
Mayor Jeffries thanked everyone for attending and closed the workshop at 7:50
p.m.
APPROVED: this _______ day of ______________ 2005.
SIGNED: this _______ day of ______________ 2005.
APPROVED:
____________________
Henry
J. Jeffries, Mayor
ATTEST:
____________________________
Nancy J. Meadows, City
Secretary