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HomeMy WebLinkAboutMIN AUG 17 1999 M I N U T E S - CITY OF BEAUMONT Lulu L.Smith DAVID W. MOORE, MAYOR John K. Davis, Mayor Pro Tem Guy N. Goodson CITY COUNCIL MEETING Andrew P. Cokinos Bobbie J.Patterson AUGUST 17, 1999 Becky Ames Lane Nichols,City Attorney Stephen J. Bonczek,City Manager Barbara Liming, City Clerk The City Council of the City of Beaumont, Texas, met in a regular session on August 17, 1999, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m. to consider the following: OPENING * Invocation Pledge of Allegiance Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items * Consent Agenda Mayor Moore called the meeting to order at 1:38 p.m. The Reverend Reggie Lloyd, Praise Christian Church, gave the invocation. Former Mayor Bill Neild led the pledge of allegiance. Present at the meeting were: Mayor Moore, Mayor Pro Tem Davis, Councilmembers Smith, Goodson, Cokinos, Ames, and Patterson. Also, present were: Stephen J. Bonczek, City Manager; Tyrone Cooper, Assistant City Attorney; Barbara Liming, City Clerk; and Rebecca A. Hoge, Deputy City Clerk. *Presentations and Recognitions A proclamation was issued honoring nineteen high school basketball players for their participation in a summer basketball competition sponsored by Sports Management Network. Ms. Lisa Eaker with AM/FM, Inc. invited Council to attend KIDFEST, a two-day activity fair for children, at the Civic Center on Saturday, August 21, from 11:00 a.m. to 6:00 p.m. and Sunday, August 22, from 12:00 p.m. until 4:00 p.m. Junior Achievement Executive Director Jamie Hogge presented certificates of appreciation to City employees: Kyle Hayes, Executive Office; Rosemary Cox, Debbie Borel, and Kathi Hughes, Convention and Visitors Bureau; Ingrid Holmes, Laurie Williams, Martha Semien, Kathy Scofield, and Trudy Bergdorf, Public Health Department; Chief Micky Bertrand, District Chief Anne Huff, District Chief Jeff McNeel, Captain Brad Pennison, Captain Earl White, and District Chief/Fire Marshall Jack Maddox, for their participation in a school career program sponsored by Junior Achievement. Mayor Moore read two letters of commendation for the City's outstanding efforts during the American Fastpitch Association Tournament recently held in Beaumont. One from the parents of a player who participated in the tournament, Mr. and Mrs. Terry Dryden, regarding the EMS care their daughter received; and the other from Mayor Tom Daily from the City of Anaheim, California. *Public Comment: Persons may speak on scheduled agenda items Citizen comment was invited on the Consent and Regular agenda Items Mr. Bill Neild of Neild Construction and Development addressed Council in opposition to Agenda Item No. 6 amending the 1997 Standard Building Code by adding an asbestos survey. Mr. Neild requested denial of the item. He quoted from a Council memo that stated "contractor indicated he had a better understanding of the law and would provide assistance in disseminating this information to area builders, architects and engineers" and said this was not Tom Neild's understanding. Mr. Neild claimed a survey is the City's role and the amendment would be an administrative nightmare. He suggested the City pay the $10,000 fine and not burden developers and builders. Further comments from Mr. Neild included the definition of a public building, added costs of an asbestos survey, discouragment of development, City and County exemptions, and a request that Council rethink passage of this amendment. Mr. Allen Lee, 5090 Maddox, addressed Council to comment about proposed City budget items. Mr. Lee claimed he is responsible for new bus-wrap advertising, remarked about the advertising procedures, and predicted this advertising will generate about $500,000 in revenue each year. He made references to administrative expenses of the Mayor and Councilmembers and gave suggestions for decreasing these expenses. Mrs. Beverly Hatcher, president of the Golden Triangle Minority Business Council (GTMBC), addressed Council in support of Item No. 5 authorizing funding in the amount of $25,000 to the Golden Triangle Minority Business Council for FY 1999. She commented about the private/public partnership of the City and the United States Small Business Administration, gave a brief outline of the GTMBC operations, and introduced the United States Small Business Administration District Six Director Milton Wilson and Board Chairman Jim Pavlowich of Mobil Oil Corporation. Both gentlemen thanked Council for previous support and funding. Mayor Moore thanked Ms. Hatcher, Mr. Wilson, and Mr. Pavlowich for their presence, for the additional information provided, and stated that doing whatever we can for new businesses in our community is the reason we have this partnership. *Consent Agenda * Approval of the minutes of the regular meeting held August 10, 1999 * Confirmation of committee appointments - No committee appointments were made A) Approve a change order to the contract for facade repairs to the Julie Rogers Theatre (Change Order #1 in the amount of $41,970 to contract with Moore's Waterproofing) - Resolution No. 99-230 B) Approve a six-month contract for the purchase of sodium hydroxide (caustic soda) for use in the Water Utilities Department (Old World Industries of Northbrook, Illinois, in the amount of $29,700) - Resolution No. 99-231 C) Approve the purchase of four sewage degritting cyclones used by the Water Utilities Department to remove solids from the sewage system during the treatment process (from Environmental Improvements, Inc., in the amount of $16,464) - Resolution No. 99-232 Minutes;August 17,1999;Page 2 D) Approve a payment for relocation expenses related to the Concord Road Improvement Project (in the amount of $7,030 to Ms. Silberene Simon) - Resolution No. 99-233 E) Approve a Construction and Maintenance Agreement with the Burlington Northern and Santa Fe Railway Company related to the Walden Road Widening Project (installation of an underground storm sewer in existing drainage ditches along the north side of the rail right-of-way) - Resolution No. 99-234 F) Approve a License to Encroach Agreement (with Michael G. Labrie, 7399 Hidden Valley Drive, for a deck encroaching 15.0' for 52.0' and a pool encroaching 5.0' for 27.0' into the 20' utility easement running midway through the property) - Resolution No. 99-235 Councilmember Cokinos moved to approve the Consent Agenda. Councilmember Smith seconded the motion. MOTION PASSED. (Councilmember Ames requested to be excused from the meeting at 2:15 p.m. because of a previous important business commitment and said she would return, if possible.) Ayes: Mayor Moore, Mayor Pro Tem Davis, Councilmembers Smith, Goodson, Cokinos, and Patterson Noes: None GENERAL BUSINESS 1. Consider scheduling a Public Hearing on August 31, 1999 relating to the proposed FY 2000 Budget City Manager Bonczek presented the proposed FY 2000 budget to Council. He introduced major issues as addressed in the city manager budget letter shown in Exhibit "A." Councilmember Goodson moved to approve Resolution No. 99-236 authorizing a Public Hearing on August 31, 1999 to review the proposed FY 2000 Budget. Councilmember Cokinos seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Davis, Councilmembers Smith, Goodson, Cokinos, and Patterson Noes: None 2. Consider scheduling a Public Hearing on August 31, 1999 relating to the property tax rate and record a vote to be published in the Notice of the Public Hearing Councilmember Cokinos moved to approve Resolution No. 99-237. Councilmember Smith seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Davis, Councilmembers Smith, Goodson, Cokinos, and Patterson Noes: None Minutes;August 17,1999;Page 3 Councilmember Goodson commented on the negative affect our City has received from the $120,000,000 to $40,000,000 (60 to 65%) drop in declining oil royalties that were set January 1, 1999. He expressed his hope that this was not reported as an increase without taking into consideration the substantial loss in mineral interests. Councilmember Goodson requested a copy of the tax summary report showing real property improvements from Tax Assessor Miriam Johnson's office before the public hearing to be held August 31, 1999. 3. Consider scheduling a Public Hearing on August 31, 1999 relating to the FY 2000 Capital Program Councilmember Cokinos moved to approve Resolution No. 99-238. Councilmember Goodson seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Davis, Councilmembers Smith, Goodson, Cokinos, and Patterson Noes: None Mayor Pro Tem Davis questioned Communication Center Network expenditures from the current budget, the position of Assistant City Manager and funding of Fire Station No. 11 in the FY 2000 budget. Mr. Bonczek responded that the proposal is to consider the Communication Center Network project in the Fiscal Year 2000 budget, stated the Assistant City Manager position had been eliminated, and the Fire Station on Sabine Pass will have an EMS function and Fire Station No. 3 service fire responses. Mayor Pro Tem Davis questioned when Council approved closing Fire Station 11, and referenced portions of previous memos and a 1996 workshop. Mr. Bonczek replied that discussion regarding staffing of Fire Station No. 3 occurred with the previous City Manager and Council prior to his appointment. Mayor Pro Tem Davis stated that closure of the fire station had not been presented to Council and said Fire Station 11 is important for the safety of the Charlton Pollard community. He asked that the recommendation to close this fire station be reevaluated, and requested the City Manager to research his past comments regarding a Capital Improvement proposal to build three new fire stations. 4. Consider an agreement with the Texas Department of Transportation for the City to receive State Public Transportation Funds related to the Beaumont Municipal Transit System Councilmember Cokinos moved to approve Resolution No. 99-239 authorizing a contract agreement with TxDOT from the State Public Transportation Fund (in the amount of $463,183 for the Beaumont Municipal Transit System). Councilmember Smith seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Davis, Councilmembers Smith, Goodson, Cokinos, and Patterson Noes: None Minutes;August 17,1999;Page 4 5. Consider funding in the amount of $25,000 for the Golden Triangle Minority Business Council Councilmember Cokinos moved to approve Resolution of No. 99-240 authorizing $25,000 for the Golden Triangle Minority Business Council for promotion and development of minority business enterprises. Mayor Pro Tem Davis seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Davis, Councilmembers Smith, Goodson, Cokinos, and Patterson Noes: None Mayor Pro Tem Davis invited Mrs. Hatcher to elaborate on the assistance the Golden Triangle Minority Business Council provides and relate the critical need for adequate funding to begin a new business and the instruction they contribute to these businesses. Ms. Hatcher stated through a private/public partnership with the City and the U. S. Small Business Administration, the Golden Triangle Minority Business Council has a whole composite procedure via their Business Information Center to help businesses become established. 6. Consider an amendment to Article II, Section 104.1.5, Information Required of the 1997 Standard Building Code to include asbestos surveys An ordinance ENTITLED AN ORDINANCE AMENDING CHAPTER 6, SECTION 6-21 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT TO ADD AN AMENDMENT TO THE STANDARD BUILDING CODE REQUIRING PROOF OF AN ASBESTOS SURVEY BEFORE THE ISSUANCE OF A DEMOLITION OR RENOVATION PERMIT FOR ANY PUBLIC BUILDING; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL; PROVIDING FOR AN EFFECTIVE DATE;AND PROVIDING A PENALTY was introduced. Council discussion included possibility of action being forced upon the City to make builders comply, state law, the City's liability, the scope being more than City-owned facilities, this being an unfunded State mandate,and the fact that this would make the City the enforcement arm for the Texas Department of Health. The consensus of Council was to defer action until more information can be ascertained. OTHER BUSINESS Receive a report from the Beaumont Housing Authority Beaumont Housing Authority Commissioner Marty Robinson provided an update on the Concord Homes development. He submitted historical information about the development, and commented about the $3 million modernization project currently in progress funded through HUD and comprehensive grant funding. He stated that 50 of the 150 units will be demolish demolished and the remaining will be modernized. After demolition funding is released, it will take about six months to commence the demolition project. He stated they have applied for a HOPE IV grant through HUD for approximately $16 million to be used for Minutes;August 17, 1999;Page 5 the replacement of the 50 units, acquisition of adjacent property to the Concord Homes and development of a day care, maintenance facilities, and community center. Mr. Robinson said the entire project will take about 18 months to two years and presented an artist's rendition of the completed project. (Councilmember Goodson left the Chamber at 3:00 p.m. during Mr. Robinson's remarks and returned at 3:05 p.m.) Mayor Pro Tem Davis questioned lighting, fencing, and security at Concord Homes development and praised the Housing Authority for their bold thinking in recent years. Mr. Robinson indicated there would be some boundary definition and fencing along street sides. * Receive a report from the Partnership of Southeast Texas Mr. Ron Arceneau, Chairman of the Board for partnership of Southeast Texas, presented an overview of their past and present activities as an economic development corporation as shown in Exhibit "B" and requested funding in the amount of $25,000. COMMENTS * Councilmembers comment on various matters. Mayor Pro Tem Davis expressed concern about the possibility of closing Fire Station 11, said he has a petition to submit to the City Manager from Charlton Pollard residents asking the fire station remain open. He voiced support of the City Manager's recommendation, if protection can be maintained, and said he did not have a problem with the $4 million communication center. He commented about the many elderly citizens in the Charlton Pollard area, wood-frame homes, and the Port of Beaumont and Mobil Oil presenting unique safety factors as boundaries for the Charlton Pollard neighborhood. He thanked neighborhood association members for their attendance at the meeting last week and for voicing their opinions regarding the fire station, and requested Fire Station 11 remain open. * City Manager's Report Mr. Bonczek commented on the status of Fire Station 11, said the station would not close, but remain as an EMS facility since 75% of the calls received relate to EMS services for that community. He reported meeting with the Melton YMCA board and Mr. Maurice Hill to share ideas to assist them in raising additional money for the proposed recreation center. He apologized for a comment made at last week's Council meeting, and stated his intent was to focus on the positive aspect of allocating Section 108 funds. He recognized Finance Department staff members for their efforts in the City receiving the Government Finance Officers Association Award recently. He remarked about his attendance at neighborhood association meetings, and expressed appreciation to Chamber of Commerce Executive Director John Breier and Manager of Economics Development Division Jim Rich for their help and cooperation with various ongoing projects. Minutes;August 17,1999;Page 6 * Public Comment (Persons are limited to 3 minutes) Ms. Kim Steinhagen, president of the Art Museum of Southeast Texas, reported a financial crisis for the Art Museum and requested assistance. She requested an increase in funding from the City from $185,000 to $225,000 with an immediate lump sum payment of $40,000. Ms. Steinhagen summarized the current debt deficit, listed some of the ways they have tried to correct the situation, and gave reasons for Council support of the increase. Mayor Pro Tem Davis asked Ms. Steinhagen about filling the Executive Director's position and expressed concern about participation of the Art Museum in the outreach program. Ms. Steinhagen replied that the position and circumstances will be reviewed to determine the feasibility of hiring an Executive Director. Councilmember Smith reminded Councilmembers they could help the Art Museum through donations or becoming members, stated she did not believe their outreach has declined and complemented the program. She said the Art Museum needs to correct this current crisis, look at long term development goals, and investigate endowments. Ms. Steinhagen stated that outreach has increased, not declined. Mr. Frank Kiefer, 3190 Willowood, addressed Council regarding Concord Road. He stated that a 1980 bond election approved $33 million for extension and widening of Concord Road, East Delaware, and West Lucas and reviewed the progress of each project. Mr. Kiefer expressed his thoughts about not wanting another bond issue necessary for completion of the Concord Road project. He commented to Councilmember Goodson about the petroleum price increase this past year adding to the City's income next year, and Councilmember Goodson responded that he hopes the price of petroleum will increase again January 1, 2000. Ms. Marie Hubbard, 1990 Nora Street, addressed Council in appreciation for their support in her receiving the Jefferson Award. She congratulated the City Manager and Councilmembers that voted to fully fund a Southend Library, expressed thanks as a citizen of the Pear Orchard Neighborhood Association, proposed a playground be built next to the library, and listed her efforts to help children learn to read at different schools in the community. (Councilmember Smith left the Chamber at 3:21 p.m. during Ms. Hubbard's remarks and returned at 3:25 p.m.) Mr. Allen Lee, 5095 Maddox, addressed Council to thank Mr. Bonczek for his participation at neighborhood association meetings and said Mr. Bonczek was doing a good job. He referenced the General Liability Fund and possible lawsuits against the City. In his opinion, Mr. Lee said the $1 million funding to the Melton YMCA was a mistake, and said he has been in contact with HUD. He commented about Sunday bus service, a possible skate board park, and suggested Councilmember Cokinos run for mayor. Mr. Cooper indicated Mr. Lee's three Minutes;August 17, 1999;Page 7 minutes were up. Mayor Moore asked Mr. Lee to be seated, and when he did not, Mayor Moore requested that Mr. Lee be escorted from the podium. Mrs. Gethrel Williams, 4495 Fortune Lane, addressed Council to thank them for fully funding the proposed Southend Library. She praised Mr. Bonczek for his courage in making the recommendation. Mrs. Williams indicated that she has a problem with 98% funding from public funds going to a private corporation project and questioned the management role of the City for that kind of funding. She again expressed support for the library and stated she is pleased that continuing efforts are being made to find additional funding for the Melton YMCA. Mayor Moore commended Mr. Bonczek's earlier remark about his statement at the last Council meeting. Mayor Moore stated he was misquoted in a recent newspaper article after last weeks meeting in the statement "the manager's presentation was unethical." Mayor Moore stated that he said "the manager's presentation was unequitable in terms of a total analysis versus one project versus the other." He stated the manager's movement within the community is important and gives him opportunity to see the challenges and understand courses of necessary action. He stated that public comments will not be removed from the agenda, but disruption will not be allowed. Effective communication with citizens will remain, but there will be controlled conduct during council meetings. EXECUTIVE SESSION Executive Session in accordance with Section 551.071 of the Government Code to discuss contemplated or pending litigation: Lloyd Brooks et al v. City of Beaumont Michael L. Rogers et al v. Robert Jerald Cox There being no further business, the meeting adjourned at 3:45 p.m. y' y' L t David W. Moore, Mayor I Barbara Liming, City berk Minutes;August 17,1999;Page 8 MLQVWjh I L City of Beaumont August 12, 1999 Honorable Mayor and Members of the City Council am pleased to present, for your consideration, a balanced budget for Fiscal Year 1999-2000 (FY2000). The proposed budget meets all legal requirements of the Civil Statutes of Texas and the Charter of the City of Beaumont. The basis for the budget preparation was multi-fold: to maintain the same level of services as in the prior year, provide for the repayment of debt and maintain sufficient fund balances with no increase in the current property tax rate. The proposed budget totals approximately $133 millidn(M) and is, in total, an increase of $10M over the FY99 projection. STRATEGIC ISSUES Administrative Reorganization Predicated on the anticipated retirement of the Water Utilities Director and the Council's desire to establish a more visible economic development focus several departmental realignments are proposed and reflected in this proposed budget. An Economic Development Department will be established within the City_ Manager's Office. The Executive Assistant to the City Manager/Economic Development Director will administer the responsibilities of the new department which will encompass Community Development (formerly Finance), Convention and Visitors Bureau and Planning and Zoning (formerly Public Works.) The Public Works Department will include, as a division, the former Department of Water Utilities with the exception of their Customer Service Division which will operate under the Finance Department. The Management Information Systems Division (formerly a division of the Finance Department) will report to the Central Services Department as will Convention Facilities (formerly part of Community Services.) This will establish the Library System as an independent department. This revised administrative structure will provide a stronger focus for economic development, concentration of internal services/facilities in Central Services and better EXHIBIT A Budget Message FY2000 Budget Page 2 coordination of public works services. The effective date of this reorganization will be October 1, 1999. Debt Service Council has maintained an aggressive capital program over the last five years with over $36M in both general and public works projects completed. The capital program is financed on a "cash flow" basis whereby debt is issued to generate enough cash to pay the actual expenditures during the year for both existing and new projects. This approach provides the most efficient use of the public tax dollars by allowing multi-year projects to be initiated without issuing debt for the full cost of the projects at the time of project commencement. Based on the "cash flow" approach the City sold $15M in Certificates of Obligation dated April 1, 1998 and $20M dated May 1, 1999. Additional funding required to complete the proposed FY2000 Capital Program is $22M. In FY2000 the combined effect of the Series 1998 and 1999 issues generates debt service payments of $2.4M. Total debt service payments for FY2000 are $12AM and will utilize $1.5M in fund balance. Existing debt payments for FY2001 and FY2002 will be $12.3M each year and is estimated to utilize fund balance of $790,000 and $250,000 respectively. As additional debt is issued to provide cash flow for the current capital program, debt service payments will also increase. An issue of $20M in Certificates of Obligation requires annual payments of approximately $1.3M in principal and interest. The primary revenue source for debt service is the dedicated property tax rate. Currently this rate is $0.275. The FY 2000 budget proposes a shift of $0.01 from the rate dedicated to General Fund to provide a rate of $.285 dedicated to Debt Service. This will allow the City to maintain the total tax rate of $0.635 and still adequately fund increasing debt service this fiscal year. - EMS In early FY99 the City was faced with the withdrawal of private ambulances from the Beaumont service area. These private companies were used to supplement existing City EMS crews responding to 911 calls. The deployment of the fourth City unit was initiated resulting in the purchase of additional equipment and recruitment of personnel to staff the new unit. Currently City staff are supplemented by private companies in a "rollover" situation. If all City units are on a call the next call is "rolled over' to a private ambulance company until the City has an available unit. Because of the increasing frequency of these "rollovers" and the overall increasing length of response times it is necessary to Budget Message FY2000 Budget Page 3 consider the deployment of a fifth EMS unit. There are several options that could affect this new unit. • A fifth City unit equipped and operated as part of the existing system. • A fifth peak capacity unit which would operate at peak times in tandem with existing units. • Contract the fifth unit to a private company which would operate under City protocols and bill their runs. • Contract the fifth unit to a private company which would operate under different staffing protocols (paramedic/EMT versus two paramedics) and bill their runs. The cost to the City would vary depending on the method selected. The deployment of a fifth full-time City owned unit would approximate $400,000 annually whereas a fifth peak load unit would cost less. There are no anticipated increases in offsetting revenues as a result of additional units as the number of calls for service are not expected to increase. The cost of deploying a private unit would be limited to revenue lost which could represent twenty (20%) percent of current billings equal to $180,000. Therefore using a private ambulance would effectively cost the City less when considering the combination of cost of avoidance ($400,000) and reduced revenues ($180,000) which would produce a net savings over the cost of a City owned unit of approximately $220,000. This proposed budget does not provide funds for a fifth EMS unit to be placed in service. The issue will be discussed with Council further to determine the policy direction. Employee Health Insurance Contributions To date (October 1998 to July 1999), the City has paid $4,746,000 for medical insurance and $389,000 for dental insurance in FY99. During the -same period employees have contributed $566,000 toward the cost of medical and dental insurance. While the cost of providing medical and dental insurance has increased significantly, the employee's contribution has increased slightly since October 1998. This slight increase in contribution is attributed to the participation of fire and police employees. The amount contributed by employees covers approximately 12% of the total cost of these benefits. The City continues to pay approximately 88% of the total cost. Considering the above facts, it is recommended that effective the first full payperiod in January 2000, that the contribution rate for medical coverage of employees with one or more dependents increase by $12.00 per month. It is also proposed that the contribution rate for dental coverage of employees with or without dependents increase Budget Message FY2000 Budget Page 4 by $2.49 per month. These increases are based on the total cost that the City is paying to provide medical and dental benefits to the employees and their eligible dependents. NPDES Permit Maintenance In 1990, Congress passed the Clean Water Act which, with subsequent amendments, established the National Pollution Discharge Elimination System (NPDES). NPDES requires cities having populations greater than 100,000 people to obtain a permit to discharge storm water collected by the City's storm sewer system into "public water." In compliance with the provisions of this legislation, the City of Beaumont and Jefferson County Drainage District No. 6 applied for and, effective October 1, 1998, were issued by the United States Environmental Protection Agency (USEPA), a permit for the discharge of storm water to the Neches River and Hillebrandt Bayou. The NPDES Storm Water permit requires the City to monitor the quality of storm water discharges and to report the findings annually to USEPA Region 6 in Dallas. The permit also requires the implementation of Best Management Practices (BMP's) designed to reduce, to the maximum extent practicable, pollutants borne in storm water collected by the City's storm sewer system. Compliance with the permit will require: 1) extensive field collection and laboratory evaluation of storm water sampling data; 2) creation of various databases to track and evaluate the effectiveness of the many BMP's required by the permit; 3) training City field personnel to recognize and properly report various environmental conditions affecting water quality; 4) qualification and quantification of data in an effort to evaluate the effectiveness of individual and collective BMP's; 5) the compilation of data required by USEPA and; 6) the preparation of annual and interim reports to USEPA and Texas Natural Resource Conservation Commission. Public Works/Engineering has limited staff assignable to the accomplishment of the work required by the NPDES Storm Water Permit and has determined that the services of a professional engineering group will be needed to augment the efforts of City personnel. The Engineering group will assist in: 1) the preparation of BMP guidance documents and training workshop materials; 2) the preparation of reports; 3) the formulation of local Ordinances which may be required for the proper implementation of the BMP program and; 4) to lend a national presence to the City's interface with USEPA. Anticipated expenditures during Fiscal Year 2000 are estimated at $265,000 to maintain the NPDES permit and comply with permit requirements. Salary Adjustments No additions are proposed to the current classification/compensation system in the area of functional categories and number of salary grades within each category. However, based on the most recent salary survey conducted by Human Resources staff, an adjustment of the salary ranges will have a favorable impact for all employees. The maximum of all salary ranges has been increased by 3%. This will allow all regular full time civilian employees, except Council appointed positions, to be considered for an Budget Message FY2000 Budget Page 5 annual salary increase of 3% based on acceptable performance on their anniversary date. An additional one-time incentive will be available at the end of the fiscal year for a limited number of employees whose performance is considered exceptional. This provision is implemented in an effort to continue to motivate and reward high achievers/performers. Sales Tax Holiday The 1999 Texas legislature recently approved a sales tax holiday for the first weekend in August 1999 which exempted most clothing and footwear priced under $100 from sales and use taxes. The tax holiday will be held every year on the first Friday, Saturday and Sunday of August. This year both state and local sales taxes were waived. It is anticipated that the exemptions will reduce City revenues by approximately $250,000 or one percent of the annual sales tax revenue. In future years however, while the state sales tax will continue to be waived, cities, counties and other local taxing entities will have the option of participating in the holiday or continuing to impose the tax. The fiscal impact of this exemption will be evaluated and careful consideration given to the Administration's recommendation to grant future waivers. TAX RATE ANALYSIS No change in the overall property tax rate is proposed. The total property tax rate will remain at $0.635 per $100 valuation. For the seventh consecutive year, the City's ad valorem property tax base has increased in value. The result is a FY2000 "penny" ($0.01 per $100 valuation) yields $362,750 for total property tax revenues of $23M. This increase of one (11%) percent is significantly less than the four - 4%) percent projected in the Five Year Financial Forecast. - An analysis of property values revealed a considerable loss of mineral values which are based on the fields under production and the price per barrel of oil on the date of valuation. These values decreased from $119,370,210 as of January 1, 1998 to $43,073,170 on January 1, 1999. The collection rate is estimated at ninety-eight (98%) percent of taxable values. The following chart puts into perspective the value citizens get for their property tax dollars. Budget Message FY2000 Budget Page 6 Cost of City Services ($0.635/$100 Valuation) Based on an average residential assessed taxable value of $65,400, each household will pay an average of $415.29 in city taxes for the year, or $34.61 per month, to support these city services: • 24 Hour Police Protection • 24 Hour Fire Protection • 24 Hour Emergency Medical Service • Funding for major capital improvements • Library facilities and services • Park facilities and activities • Animal control services • Environmental health services including restaurant inspections • Building inspections and permitting services • Code enforcement services • Health services • Emergency and disaster management • Street lighting In comparison, the cost of: • Cable TV with expanded basic service plus one premium service is $45.69 per month. • One night at the movies for a family of four with soft drinks and popcorn is $36.00. • Average monthly expenditure to eat out for one person is $86.83. APPROPRIATION ANALYSIS BY FUND - General Fund The General Fund activities include administrative, community services, public safety, and public services. Expenditures of $66.3M, including transfers out, are projected in FY2000 to support these programs. Available resources include the use of $1.2M of unreserved fund balance and revenues of $65.1M which are proposed to fund this level of expenditure. Revenues projected for FY2000 are sufficient to fund the General Fund operations with a property tax rate of $0.35 per $100 valuation attributed to these activities. Budget Message FY2000 Budget Page 7 Sales and use tax represents the largest classification in the total revenue stream of the General Fund and is very responsive to prevailing economic conditions. Revenues recognized from sales tax for FY2000 are expected to total $26.41VI an increase of $1.1 M over FY99. The impact of the sales tax holiday may reduce the potential sales tax revenue by $250,000. Property tax revenue is expected to total $13.1 M. The proposed property tax rate for General Fund purposes equal to $0.35 per $100 valuation reflects a decrease of $0.01 attributable to the transfer of the equivalent of one penny of the tax rate which will be used to fund additional debt service requirements in the Debt Service Fund. Industrial tax payments are collected from companies located outside the City's taxing jurisdiction. The payments are made contractually based on the assessed value of each of the companies, and as such, generate revenue much like a property tax. The existing contracts are expected to provide a total of $10.9M in FY2000. These three revenue sources combine to provide over 77% of General Fund revenues. Other revenues received include Gross Receipts Tax, Utility Fund In Lieu Payments, Fines and Forfeitures, Charges For Services and other miscellaneous receipts. General Fund Revenues Major Sources 40.4% x °. C3 Sales Tax =Property Tax 20.1 'vk:y ®Industrial Payments f aGross Receipts Tax ° 14.2!° Q Other Revenues i 16.8% 8.5% Expenditures for FY2000 are expected to increase $3.41VI for total expenditures, including transfers, of $66.3M. Administrative, comprised of Executive Office, Legal, City Clerk, Human Resources, Central Services and Finance, accounting for 18% of General Fund expenditures, is projected to increase to $11.8M. The three departments included in Community Services are: Public Health, Library System and Parks and Recreation. The total cost of these departments represent 13% of the General Fund budget, an estimated $8.5M. Police and Fire are presented as Public Safety Budget Message FY2000 Budget Page 8 representing 47% of expenditures, the equivalent of $31.11M, in the FY2000 budget. Public Services or Public Works represents 22% of the General Fund budget, an estimated $9.3M. Transfers to other funds are projected at $5.6M for FY2000 and are distributed between the Municipal Airport, Transit, Capital Reserve, Employee Benefits and General Liability Funds. General Fund Expenditure Summary by Major Category FY00 Proposed Percent Increase/ Percent Budget of Total (Decrease) Change Wages $39,918,600 60.2% $1,828,300 4.8% Benefits 8,155,000 12.3% 160,600 2.0% Supplies/Services 11,104,700 16.8% 1,077,500 10.7% Equipment 1,513,700 2.3% 52,500 3.6% Transfers 5,597,600 8.4% 317,600 6.0% Total $66,289,600 $3,436,500 5.5% DEBT SERVICE FUND The Debt Service Fund is a legally restricted fund utilized to account for revenues recognized to liquidate the debt service requirements for the City's general obligation debt. Expenditures anticipated for FY2000 total $12.4M and are required to meet the current debt service requirements. This is a $1.2M increase over FY99 and includes the first annual payments related to the FY99 sale of $20M in Certificates of Obligation. The primary source of revenue is from property taxes. To fund increasing debt service requirements a tax rate of $0.0285/$100 valuation is proposed for FY2000. This is an increase in the tax rate applied to debt service but maintains a constant total property tax rate of $0.635 per $100 valuation. The additional penny is realized by a shift of $0.01 per $100 valuation from the General Fund. When combined with available unreserved fund balance of $1.5M and interest earnings this will be sufficient to fund the FY2000 annual debt service. ENTERPRISE FUNDS Enterprise funds account for the business-like operations of the Water Utilities and Solid Waste Funds. The intent is that the costs of providing goods or services to the Budget Message FY2000 Budget Page 9 general public is recovered primarily through user charges. There are no rate increases proposed for either activity for FY2000. Water Utilities Fund accounting for the provision of water and sewer services to residents and commercial businesses in the City and proximate area. The current rate structure is adequate to fund the FY2000 budget. Revenues of $19AM maintain the FY99 level of consumption. The expense for operating the water and sewer system is estimated at $9.8M. Non-operating costs of $9.6M include payments for debt service, transfers out, equipment and construction. Capital improvements to the system that require debt service are funded in the Water Capital Improvement Program. Funding of future capital projects will require consideration of a rate increase to provide sufficient funds to service increased debt requirements. Solid Waste Fund providing for trash and brush collection, disposal services, the operation of the City landfill, enforcement of environmental codes and the demolition program. Level revenue expectations will produce $5.9M in available resources. The steady revenue outlook combined with an adequate fund balance will sufficiently support FY2000 projected expenses of $6.2M and another year of stable rates in the Solid Waste Fund. SPECIAL REVENUE FUNDS Special revenue funds are used to account for revenues allocated for restricted purposes as specified by law. Hotel Occupancy Tax Fund used to account for the "HOT' tax received and to promote tourism and the arts. Revenues generated by the authorized tax-are expected to equal $1.8M. Expenditures are budgeted to include the use of $137,000 of unreserved fund balance. Street Maintenance Fund created to account for funds received from a street user fee and expended to repair streets in critical condition. Revenues are expected to remain stable in FY2000 with proposed expenditures for street maintenance equal to $2.8M. INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing of goods or services provided by one department to other departments of the City on a cost reimbursement basis similar to an enterprise fund where costs are recovered through user charges. Budget Message FY2000 Budget Page 10 Capital Reserve Fund is used to account for revenues and costs associated with the purchase and replacement of the City's fleet vehicles and equipment. Revenues of $2.2M coupled with $500,000 of fund balance will finance those expenditures for FY2000. Fleet Management Fund is used to account for the activities associated with maintaining fleet vehicles owned by the City. Both revenues and expenditures are expected to remain stable at the same level projected for FY99. Employee Benefits Fund is used to account for activities related to administration of the City's health and worker's compensation programs, along with other employee benefit costs. In addition to service charges, the use of fund balance will also be required to fund expenditures totaling $9.9M. This will result in an ending fund balance of $700,000. General Liability Fund is used to account for activities related to the City's self-funded general liability programs such as automobile liability, as well as other claims and judgments asserted against the City. To maintain a sufficient fund balance, transfers from the General Fund, Water Utilities and Solid Waste are needed to adequately support this activity. Consistent with the allocation in FY99 transfers totaling $600,000 are proposed ANALYSIS OF FUND BALANCE The City of Beaumont's financial policies define a range of 8-10% as sufficient for the General Fund fund balance. The FY2000 budget proposes the use of available unreserved fund balance to supplement anticipated revenues. This may be accomplished within the established fund balance range maintaining a level of unreserved fund balance of 9.8% of proposed expenditures. The proposed use of fund balance would provide for the funding of lost sales tax revenues (sales tax holiday), the NPDES permit maintenance, the impact of the fifth EMS unit (lost revenues or new unit cost) and a one-time incentive payment for high performing employees. For the past several years the Debt Service Fund has maintained a high level of fund balance in anticipation of rising annual debt service requirements. Initially established with the Southwestern Bell settlement ($1.6M) the Council had instructed it's use to offset a property tax rate increase as long as feasible. Over the last four years every refunding opportunity has been taken and extended the sufficiency of the existing fund balance to offset an increase in the tax rate. FY2000 is the second year of the systematic paydown of the Debt Service Fund fund balance. The fund balance at the end of FY2000 will be the equivalent of 22% of debt service expenditures which is above the 20% minimum management has set as sufficient to meet future needs. Budget Message FY2000 Budget Page 11 Over the last two years Hotel Occupancy Taxes have produced revenues in excess of budget expectations. The FY2000 budget proposes the use of a portion of the unreserved fund balance to fund a one-time celebration that is at the heart of Beaumont, the 2001 Spindletop Celebration. This celebration will mark the 100th anniversary of the Lucas Gusher at Spindletop, the event that spurred development in Beaumont. Fund balances maintained in both the Employee Benefits Fund and the General Liability Fund are based on the projected claims outstanding- The Employee Benefits Funds has sufficient reserves to payout probable worker's compensation claims but may not have sufficient reserves to cover the employee indemnity plan runoff. This is being address in the form of increased employee contributions. The level of fund balance in the General Liability Fund is sufficient to fund known claims as reviewed by the City's Legal Department. ACKNOWLEDGMENT Tremendous effort has gone into the development of this budget. In order to keep the budget within anticipated resources, many hours were spent reviewing and prioritizing additions, reductions and departmental requests in order to meet Council goals and stay within established parameters. It would be impossible to produce this document without the cooperation of all departments. It is through teamwork and commitment that the administration was able to prepare, present and implement a balanced budget. I especially want to recognize the professionalism and dedication of Beverly Hodges, Finance Officer and Andrea Deaton, Budget Officer for their exceptional efforts in preparing this budgetary and services plan for FY2000. Carol Wilson, Fiscal Assistant and the accounting staff provided financial information critical to the timely completion of the proposed budget. I look forward to workshops regarding the FY2000 budget and welcome any questions or comments you may have concerning the document presented. Respectfully submitted, Stephen J. Bonczek City Manager SJB:BPH Partnership Of Southeast Texas an economic development corporation July 12, 1999 The Honorable Mayor David Moore City of Beaumont P. O. Box 3827 Beaumont, TX 77704 Dear Mayor Moore: The Partnership of Southeast Texas would like to appear on the next available City Council agenda to request funds for the 1998-1999 budget year in the amount of$25,000. As you know POST has been working hard at building the economy of Southeast Texas and working on pulling together the nine counties as a region. Some of the new and exciting things going on at POST: • The new Southeast Texas Local Contractors,Vendors, and Suppliers Directory is out with more than 500 companies in 180 categories. • The Tourism-Issue Group is working on building a regional tourism web site --the first part of that, a web site.ou.all the regional binding opportunities is already up and running.at http://setx.orat mlfbirding htm • The Existing Business Issue Group saw its dream of an information clearing house fulfilled when POST put the Virtual Small Business Advisor on line earlier this spring. The site will be continually updated to bring the best information to small businesses and all businesses in Beaumont and Southeast Texas. • Our Workforce Issue Group has worked on several job fairs,and is currently working on an area salary survey to get better information that local companies can use and also that the economic development committee can use. • We have begun a series of regional meetings to allow community leaders to network and share ideas and success stories. The third of those meetings will be for Hardin,Jefferson and Orange counties in August. • And of course we have been leaders in fighting to protect our Southeast Texas water and to fight for fair interpretations of air quality laws for the region. • Our Leadership Southeast Texas program has expanded from 50 participants per year to around 70—it continues to build regionalism by allowing leaders from throughout the nine counties to get to know each other and learn each other's perspectives on regional issues. Post Office Box 38ZB - Beaumont.Texas 77704 USA 409-838-6800 • Fax: 409-835-ZOZ6 • 1-800-916-8080 http://www.setx.org EXHIBIT 13 Honorable Mayor David Moore July 12, 1999, Page 2 We continue of course to work to attract business and industry to this area. POST has attended four trade shows this year and worked with nearly 70 prospects looking at the area. And we have been getting more and more requests for help from local businesses. We have attached a sheet which gives some examples of those requests. We look forward to working with you and the Council to build the economy of the region and create jobs for its citizens. Sincerely Ron Arceneaux Chairman of the Board Honorable Mayor David Moore July 12, 1999, Page 3 Examples of POST working with Beaumont companies. Tom Flanagan came to POST for help in gathering ideas on structuring Crockett Street Entertainment District and for help in getting statistics on sales in the region to sell investors on the idea. Foxworth Real Estate came to POST for help in selling the Sysco Building. They wanted to market the building to manufacturers in the state. POST acquired a mailing list with more than 3,000 email accounts and taught them how to do a mass email -- The cost to get the word out to 3,000 companies? $0 Winslow and Associates approached the Partnership of Southeast Texas about help in getting and EDA grant for the Port of Beaumont expansion to the opposite bank of the Neches River. POST showed the company how other grants had been written successfully. Their grant was approved. POST worked with the Beaumont Chamber of Commerce and Entergy to.make.sure Goodyear got Ul benefit of the tax abatement policies. During that process, POST discovered that the property for Goodyear's expansion was listed in the Port district when it was really some distance away. POST worked to get that corrected and that will save Goodyear about$70,000 a year for the next 20 years. A Beaumont manufacturer asked for help on getting consideration on their bid fora project with BASF!FINA. POST was able to put company officials together with top-level of#icials.at•. BASF/F1NA to plead their case. County Judge Carl Griffith, in the early stages of planning for the Southeast Texas Entertainment Complex,came before the POST Board of Directors twice for input—the second time he brought Tracy Byrd along. The public relations company working on the announcement event came to POST for names of community leaders in the region for the invite list.