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HomeMy WebLinkAboutMIN JUL 10 2001 M I N U T E S - CITY OF BEAUMONT Lulu L. Smith DAVID W. MOORE, MAYOR Guy N. Goodson, Mayor Pro Tern Andrew P. Cokinos CITY COUNCIL MEETING Becky Ames Bobbie J. Patterson July 10, 2001 Audwin Samuel 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 July 10, 2001, at the City Hall Council Chambers, 801 Main Street, Beaumont, Texas, at 1:30 p.m. to considerthe 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 1:34 p.m. The Reverend Vincent Tyler, Cathedral of Faith Baptist Church, gave the invocation. Boys Scouts Kenneth Aydelotte and Chris Gonzales with Troop 85 led the pledge of allegiance. Present at the meeting were: Mayor Moore, Mayor Pro Tern Goodson, Councilmembers Smith, Cokinos,Ames, Samuel, and Patterson. Also present were Stephen J. Bonczek, City Manager; Lane Nichols, City Attorney; and Barbara Liming, City Clerk. Presentations and Recognitions - No proclamations were issued. Mayor Moore recognized Kenneth Aydelotte and Chris Gonzales and their families. Kenneth and Chris are members of Boy Scout Troop 85 and are observing City Council as part of the requirements for the Citizenship in the Community merit badge. �k Mr.Tom Bell, secretary of the Board of Directors for Beaumont Main Street, and Executive Director Carolyn Howard presented a certificate recognizing the City of Beaumont as a 2001 National Main Street City. Mr. Bell said that Beaumont Main Street is celebrating their tenth anniversary in partnership with the City of Beaumont, and since 1992 reinvestment in downtown Beaumont is over$35 million and almost 900 jobs. Ms. Howard distributed to Council copies of brochures that depict their program of work for the next two years and a publication they distribute upon request of projects currently underway amounting to almost$20 million of restoration . She pointed out that for every dollar the City invests, over$30 is received in return by investors. Beaumont is one of 80 Main Street Communities in Texas and has been at the top for three consecutive years. * Mayor Moore welcomed and recognized the attendance of Mr. Luke Jackson,the recently retired Parks and Recreation Director. Police Officer David Henry and Boxing Coach Jimmy Baker with the Police Activities League (PAL) recognized the efforts of Orlan Sharpe. Orlan is 15 years of age, attends Central High School, and boxes on the Beaumont Police Activities League Boxing Team, and won the 178 pound championship at the Texas State Junior Olympic Boxing Tournament held at Galena Park High School in Houston. He defeated Eric Hernandez of the South Texas Boxing Association with a 2nd round knockout and advanced to the National Junior Olympic Boxing Championship held June 18-23 in Marquette, Michigan where he lost the championship by a 3-2 decision. Officer Henry expressed appreciation for the program and said they reach about 1,200 youth and gives them opportunity to open doors to do good things. Since initiation of the program, seven national championships have been attained by five boxers. Coach Jimmy Baker reviewed the history of the boxing program, said they have 25 to 30 kids in the gym daily, and complimented the efforts of Orlan. Orlan introduced his parents and expressed appreciation to the City of Beaumont, Officer Henry and Coach Baker for the PAL program. Mayor Moore expressed pride in Orlan for his perseverance and outstanding representation for Beaumont, as well as his accomplishments. He complimented Officer Henry and Coach Baker for the progress made in serving over 1,000 participants. Public Comment: Persons may speak on scheduled agenda items. The City Manager announced that Item C on the Consent Agenda has been pulled. Mr. Allen Lee, 5095 Maddox, addressed Council to compliment Orlan Sharpe and his family and encouraged him to keep up the good work. Mr. Lee referred to an article in the Beaumont Enterprise written by him expressing views on a non-resident user fee as an option to meet budget constraints. He further expressed opinions that included voters keeping Council members in office, said the newspaper did not print implementation of a non-resident user fee, placing sanctions on those not paying the fee, claimed some Council members are corrupt, and said if they do not consider assessment of the non- resident fee, they will be guilty of malfeasance. Mr. C. L. Sherman (no address given) addressed Council to state that personnel staffing for the City has increased during the past ten years, but has been reduced by manufacturers and refineries. He stated that personnel reduction is an absolute necessity, said he can almost guarantee a referendum if a storm water utility fee is initiated, and that people are fed up with tax increases. He explained that he is not saying the City has too may people working, but more than we can afford, said the biggest part of the budget is personnel, that during the 80's there were about 15,000 lay-offs in refineries, and that we have to learn to be leaner, meaner, and more efficient. Consent Agenda Approval of minutes - June 28, 2001 Confirmation of committee appointments - No committee appointments. Minutes July 10,2001 Page 2 A) Approve the purchase of 10,000 feet of polyethylene pipe (from ACT Pipe and Supply at $3.59 per foot, total expenditure of$35,900) - Resolution No. 01-165 B) Authorize the purchase of one diesel engine generator set and transfer switch for the wastewater handling system and all pumps at the Beaumont Fire Training Grounds (from Emergency Power Service in the amount of$20,440) - Resolution No. 01-166 C) Approve the purchase of promotional items for the Clean Community Department- Item pulled D) Authorize the City Manager to execute an agreement with C. L. Sherman and Sons Lumber Dealers, Inc. for the lease of property for the operation of Emergency Medical Services (EMS) Medic 1 (2510 North 11`h Street, Suite A at $1,276 per month) - Resolution No. 01-167 Councilmember Smith moved to approve the Consent Agenda. Mayor Pro Tern Goodson seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tern Goodson, Councilmembers Smith, Cokinos, Ames, Samuel, and Patterson Noes: None GENERAL BUSINESS 1. Consider authorizing the City Manager to execute two Ground Lease Agreements for property located at the Beaumont Municipal Airport Councilmember Cokinos moved to approve Resolution No. 01-168 authorizing two 30- year lease agreements with Mr. Gary Giarraputa, the airport's fixed-based operator, for approximately 10,500 square feet of property located east of the large south hangar along T-hangar C's taxiway and with Conn's Appliance, L. P. for approximately 21,380 square feet east of the north hangar building ramp. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tern Goodson, Councilmembers Smith, Cokinos, Ames, Samuel, and Patterson Noes: None Abstention: Mayor Moore WORK SESSION * Review and discuss FY 2002 Budget proposals The City Manager introduced updated budget alternatives (Exhibit "A") and a budget reduction analysis (Exhibit "B") presented to Council for review on July 6, 2001. In the budget reduction analysis on page one (Exhibit"B"), Mr. Bonczek stated that the correct Minutes July 10,2001 Page 3 number of vacancies listed in the Fire Department is four instead of five. Total proposed reductions is $3,404,000 with Council concurrence for$2,518,000. Mr. Bonczek reviewed Alternative 1 implementing a stormwater utility fee with two options. One option is based on measured impervious surface and the other based on a tiered rate structure. Both options generate approximately $2.6 million in revenue. Alternative 2 adopts a $.04 property tax increase, increasing the current tax rate of$.635 to $.675 and retains the street user fee. In response to a question by Councilmember Samuel, the City Attorney stated that he knows of no tax deduction provision for fees, such as the proposed stormwater utility fee. The City Manager referred to a memoorandum presented to Council containing historical and statistical information about the EMS First Responder Program in answerto questions asked by Councilmember Smith. Councilmember Smith explained that she was concerned how a determination is made that the first responder is the Fire Engine and the second EMS. She said that the Fire Department sends out a unit on every call, and there seems to be a screening method that could be implemented to eliminate the Fire Department making an unnecessary call. Mayor Pro Tern Goodson interjected that in reference to comments made by Mr.Sherman, that personnel is the way in which reductions in City government can be affected, the circulated information shows almost 200 increased positions in the last ten years is based on budget organizational chart positions. In the $2.5 million budget reductions reviewed by Council in recent weeks,the majority of monetary reduction is in personnel. Mayor Pro Tern Goodson suggested it might be beneficial to provide this information to interested parties and to illustrate the total number of affected positions, if adopted. Also, he commented that Fire and EMS are the only significant departments that haven't been affected by proposed budget reductions, and a review of all our services is needed to determine their efficiencies. He stated since the 911 service has been in place, the trend appears to be a substantial increase in the number of calls. Mayor Pro Tern Goodson called attention to the graph that indicates a decline of about 50 percent in responses for nine months of this fiscal year. If this is a true decline, he said this could be an important issue to note, and said Councilmember Smith's comments about an appropriate call out system and screening are well taken. He also addressed the cost of our system, private transports,the City transporting most low or no-pay customers, and looking at the entirety of the service—the Fire response and emergency system. With our excellent response time, Mayor Pro Tern Goodson said he would not like to do away with the service, but does not see future substantial improvement in collections after completion of the initial past due account collection effort. He recommended looking at every department. Councilmember Ames stated $2.5 million in budget cuts have been made, thinks more can be made, and said she is not ready to adopt a fee or tax increase until all areas of potential budgets have been exhausted. She addressed personnel cuts, community misconceptions, the stormwater fee not having capital included, elimination of the street user fee with a stormwater fee establishment, and lack of a voice from the community for service cuts. She discussed the stormwater utility flat fee of$2.79 per household based on impervious surface and the tiered rate ranging from $2.50 to $4.00 as being in the Minutes July 10,2001 Page 4 same range as a street user fee and the effects of each option on businesses, and the street user fee staying in place with a property rate increase. Additional discussion included the sales tax report expected to be available tomorrow,the trend for more calls being EMS related, the approximate Fire response time being four minutes or less, the average EMS response time about six to eight minutes, if the Fire Department is not the first responder more EMS stations and personnel would be required, and the cost feasibility of moving EMS into Fire is currently under review and to be placed on a future workshop session. Mayor Moore commented that the previous reference to 15,000 job reductions made by corporations actually resulted in them eventually resulted in hiring contract labor near the same rate of pay, but without paying them benefits and addressed automation within budget parameters,continuing efforts to bring new levels of service, operating as one city, and problems addressed in some areas and some remaining to be addressed. The City Manager stated the City is not anti-business, but pro-community, the manufacturing process has the ability to add a costly addition to their plant and maybe create 75 or 100 jobs, but the City provides services rendered through personnel. During the tenure of Mr. Bonczek, he said that a net of about $200,000 in savings has been realized in personnel cuts and services and programs have been expanded to meet community needs to make Beaumont a desirable place for economic development because quality of community attracts business. Further discussion included the contractual agreement with the Fire Union and the ability to set the number of positions, privatization and municipality obligation to assume service upon private company failure to operate, staff consideration, Fire and EMS being different than revenue generating funds,equal comparisons, lack of Citytransports otherthan call- outs, and the City transporting all or most low or no-pay customers. Mayor Pro Tern Goodson spoke of establishing a clearance procedure on 911 calls to insure that the City was not responding to non-emergency calls, and requested a copy of the policy and a report of the number of calls received versus the number of transports made. Mayor Moore requested information about the budgetary impact of using temporary or seasonal employees versus permanent employees during peak seasons. He also asked the City Attorney to research information on occupancy or non-residential taxes, how they could be applied and any challenges that could be made. COMMENTS * Councilmembers comment on various matters Councilmember Cokinos reported that he was pleased to have attended an impressive Changing of Command Ceremony at the Reserve Center this morning. (Mayor Pro Tern Goodson left the Council Chambers at 2:47 p.m. and returned at 2:48 p.m. during Councilmember Samuel's comments.) Minutes July 10,2001 Page 5 Councilmember Samuel questioned City recourse when contractors fail to properly clean a construction site or provide access to residents, and City Attorney Lane Nichols stated that full payment can be delayed until the contract has been fulfilled. Normally, City staff will advise the contractor of problems and work out a resolution. Councilmember Samuel informed Public Works Director Tom Warner that on Mary Street, where the Charlton- Pollard Park is under construction,there has been a problem with accessibility created by a contractor. He asked how citizens could be assured access to their homes and if their vehicles get stuck, what assistance may be provided, and Mr. Warner said he would investigate the situation. Lastly, Councilmember Samuel apologized to Beaumont Transit employees for not arriving back in Beaumont in time to attend their meeting last Sunday evening, but said he would meet with them as soon as possible. Councilmember Patterson announced that the Pear Orchard Neighborhood Association meeting will be held July 17 at 7:00 p.m. at Our Mother of Mercy Hall with the City Manager as the guest speaker. Mayor Moore reported that he welcomed judges and commissioners at a convention this morning that brings over 500 visitors to our city for the next several days. Also, the Softball Classic will be in Beaumont. He asked the City Manager for status of the trash issue on Sarah Street so that he may respond to citizens. * City Manager Report - FY2002 Budget Preparation Process; The New Director of Southeast Texas Arts Council; Landfill Expansion Project; Recycling Drop Off Center; Beaumont Police Department's Youth Academy for Law Enforcement Mr. Bonczek reported that the Landfill Expansion Project is proceeding with engineering services estimated from $300,000 to $400,000 to obtain an amended permit, which may be a two to three year process, and a professional services contract with Emcon will be prepared. He said Gulf Coast Recycling has been notified the City's curbside recycling program is being discontinued and the opportunity for them to assist with recycling. The Beaumont Police Department's Youth Academy will be held July 10-26 for youth,ages 12- 17. In response to a request by Mayor Moore, the City Manager said the City is working on a special holiday program,entitled"Oh Holy Night,"and sponsorship to obtain the Rudy Hawkins Gospel Singers for the event. * Public Comment (Persons are limited to three (3) minutes). Ms. Sue Gabriel, 1095 Oregon Avenue,Apartment No. 1,addressed Council in opposition of transit service reductions. She said the quality of life should be improved for all citizens and to move forward and not backwards. Ms. Gabriel stated that eliminating bus service would be a step backwards. She spoke in support of evening and Saturday bus service, against reduction of bus drivers, addressed the impact on retailers, as well as, ridership, more routes, soliciting more federal grants, and relayed her experiences of walking when bus service was not available. Minutes July 10,2001 Page 6 Mr. Allen Lee, 5095 Maddox, invited Ms. Gabriel to attend a forum with the Justice Department at Our Mother of Mercy Church on August 21 at 7:00 p.m. to make them aware of the proposed transit reductions. Mr. Lee cited various circumstances when Justice Department intervention made a difference and policies they are presently reviewing. Mr. Lee claimed certain Council members to be criminals and corrupt,and said that he will not be at City Council next week because the committee he formed will be meeting with Justice Department officials. Mr. Lee advocated Sunday service,chastened those who ride buses and do not vote, spoke of a petition for a Civilian Review Board not being put on a Council agenda, higher taxes and less services, and said Justice Department officials will be taken to the West End YMCA and the Melton YMCA. He claimed that money has been given to the Melton Y without improvements being made. Pastor M. L. Johnson of the House of Prayer, 3994 Pine Street, addressed Council to speak of putting God first in decisions, spoke in support of bus service, cited examples of those who need the service, said we must work together, and requested that if bus fares are increased, that service is improved. Mr. Leroy Lewis, III, 1201 Euclid, addressed Council to complain about an unsecured structure at Irving and Jackson having garbage in it, said curbs and sidewalks in front of Pietzch Elementary need repair, reported that the window is broken in the bus stop at Parkdale Mall, suggested everyone contribute $2 to assist elderly citizens with air conditioning, claimed inequity and advocated helping all ethnic races, said he has not forgotten about his $300 million request for improvements, commented about crime in neighborhoods and encouraged citizens to turn in drug dealers, spoke in support of bus service even if the fare is increased, thanked the Salvation Army, Some Other Place, the Red Cross, and Congressman Lampson for helping flood victims, and requested assistance with gangs of stray dogs on the streets. Mr. Luke Jackson, 4580 Cartwright, addressed Council to ask how long is long enough to make promised street repairs, said there has been funding to make the improvements, and requested that in budget preparations, monies be set aside for the improvements. Mr. Cleveland Nisby, 4520 Corley, addressed Council to voice opinions about the City Manager not balancing the budget, recalled past approval of storm sewers for flood purposes and a present request to assess a storm water utility fee or property tax increase. He spoke of rejection by the City Manager to place 23' Street on the CIP because of lack of funding, inclusion by the Mayor and City Manager of prioritizing the extension of Dowlen Road to Walden Road which he said has always been a contractor's expense, claimed money is being given to private businesses in bad loans, and now citizens are asked to rescue poor management. Mr. Nisby requested Council find a way for the budget to be balanced, review administrative costs, and recognize that citizens can't always be called upon to correct mistakes. Ms. Kay Owens, 3910 Treadway, addressed Council to state that she utilizes bus transportation daily as a Lamar student, a mother, and for other business. She referred to the disability statement on the Council agenda and said that lack of transportation is a disability for her. Ms. Owens expressed appreciation for bus service, said improved transportation should be made for economic development, and requested that transportation not be taken from those who need it because the budget is not in order. Minutes July 10,2001 Page 7 Mr. W. Preston Shaw, 4630 Corley, addressed Council to state that he built his home 34 years ago and has had conversations with Councilmembers about 23' Street. Mr. Shaw said it saddens him to speak of 231d Street after hearing comments about bus service and is conscious of trying to help others. He shared that he knows this is a difficult time, but said promises have been unfulfilled, and now he would like the 23rd Street project considered. Mr. Shaw claimed residents have listened and been patient. Mr. Richard Price, 4725 Corley, addressed Council to state that the 23rd Street has been addressed, and said he would direct his comments to EMS. Mr. Price gave an example of an accident in which his son was involved without injuries and because they are first responders, the Fire Department dispatched a big Fire truck that was unnecessary. Mrs. Cleveland Nisby, 4520 Corley, addressed Council to state that she is embarrassed to speak because she is begging for something she deserves, something she has paid for through very high taxes with very little services,and that is for improvements to 23rd Street. She spoke of citizen pride in her neighborhood, stated that 23rd Street is in the same condition as it was 30 years ago, while other streets have been paved, curbed and guttered. Mrs. Nisby again emphasized her plea for improvements to 23rd Street. Mayor Moore thanked the audience for their attendance and expressed that Council prefers to keep extended bus service, and said it is this Council that initially approved extended bus service even beyond 6:30 p.m. He addressed Council efforts in providing activities for children and youth and said that Council wants to make improvements to 23 d Street, Virginia Street, Delaware Street, and all streets. Mayor Moore said many misstatements have been made. One is that the Mayor and City Manager cannot make a decision on any street; it is a total Council decision. He reminded residents that a plan was in place to repair 23rd Street, but residents stated that unless 23rd Street was curbed and guttered, it was unacceptable and they wanted it done right. He reiterated that Council has heard the requests and wants to honor them within reason, however, there are constraints. He addressed accusations of mismanagement and some thinking there is an endless pot of money. Mayor Moore said he has spent many hours in front of Congressional representatives soliciting funds for our community, and that the Beaumont Transit System was recently cut$170,000 in federal funding. Mayor Moore said with the mandates being handed down, it is going to get tougher at the municipal level. He referenced a comment about securing $300 million, and stated that if it was possible to secure that amount, there would be not be a budget issue, and informed citizens that many grant funds are distributed according to population size. He addressed working together to face challenges, said he understands how 231 Street residents feel, reviewed that when a privatization pilot program to reduce costs of EMS was presented, many said "no," we want another unit added, and Council complied to that wish. Mayor Moore also spoke of fire protection efforts for all areas, said there has only been one tax increase in ten years, and there has also been a tax decrease. He spoke of Council budget challenges being known for three years and of efforts made to meet them. Additionally, he explained a matching grant for a project total of $3.5 million, the City's share being $700,000, and other major projects at $1.5 million, or greater, under consideration as needed. Mayor Moore spoke of emotions running high, efforts to wisely allocate money to serve city needs, possible curtailment of projects, public safety a major expense, encouraged continued communication, and told those who ride the bus that this Council Minutes July 10,2001 Page 8 put together an outstanding shelter and transfer center and that 80 percent of the bus system is funded by federal and state dollars and is a deficit running program. EXECUTIVE SESSION Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: James R. Hucker v City of Beaumont There being no further business, the meeting adjourned at 3:35 p.m. YY1z David W. Moore, Mayor Barbara Liming, City Clerk Minutes July 10,2001 Page 9 Balancing the FY 2002 Budget ALTERNATIVE 1 Stormwater Utility Implementation Stormwater Fee (9 months) $1,950,000 Selective reductions in various departments 2,518,000 Increase shift in property tax dedicated to Debt Service by approx. $.0125 (468,000) Total to equal budget reduction target $4,000,000 ♦ Stormwater Utility Fund will be established to provide funding for operation and maintenance related to stormwater management. ♦ Stormwater Utility implemented at a rate to generate $2.6 million annually. ♦ Stormwater implementation scheduled for January 1, 2002 (9 mos. in FY02). ♦ In order to implement by January 1, the Stormwater Utility Fund would have to be established by July 31, 2001. ♦ Department reductions based on Council consensus. ♦ No increase in the total tax rate of$.635. which is currently dedicated at $.33 General Fund and $305 Debt Service, would be required. ♦ Included in the target deficit is the required $.02 shift from the General Fund to Debt Service for existing debt requirements. ♦ The Street User Fee would be eliminated and street rehab would become a component of the CIP. ♦ Alternative 1 produces the capacity to increase the tax rate shifted from the General Fund to Debt Service by $.0125. allowing for the continuation of the Capital Improvement Program (CIP) including street rehab. ♦ The total shift from the General Fund to Debt Service would be $.0325, or $1,235,000, effecting a rate of$.2975 dedicated to the General Fund and $3375 dedicated to Debt Service. 1 7/6/01 EXHIBIT "A" OPTION 1 ESTIMATED STORM WATER UTILITY REVENUE BASED ON MEASURED IMPERVIOUS SURFACE Assumptions: • Annual Budget - $2,600,000 with No Capital • Exemptions - County, Religious Organizations and Public Schools • Rate per Equivalent Single Family Unit (ESU) - $2.79 • Estimated Annual ESU's - 931,900 Anticipated Revenue: 931,900 ESU's (a, $2.79/ESU = $2,600,000 Example Locations: Monthly Annual Location ESU's Fee Cost Hoffbrau 18.83 $52.54 $630.48 American Valve and Hydrant 280.87 $783.63 $9,403.56 Ritter Lumber 51.51 $143.71 $1,724.52 Harbor Apartments 79.16 $220.86 $2,650.32 Fisca Convenience Store 6.29 $17.55 $210.60 2 7/6/01 OPTION 2 ESTIMATED STORM WATER UTILITY REVENUE BASED ON TIERED RATE STRUCTURE Assumptions• • . Annual Budget - $2,600,000 with No Capital • Exemptions - County, Religious Organizations and Public Schools • Tiered Rates Residential Small< 1,800 sf $2.50 Medium 1,800 sf to 2,700 sf $3.25 Large> 2,700 sf $4.00 Commercial Small <4,000 sf $4.00 Large> 4,000 sf Calculated Impervious Surface Anticipated Revenue: Residential Tier Estimated# Monthly Annual Tiers Range (sf) of Accounts Rate Revenue Small < 1,800 sf 10,860 $2.50 $325,800 Medium 1,800 sf to 2,700 sf 10,910 $3.25 $425,490 Large > 2,700 sf 11,470 $4.00 550,560 Annual Residential Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,301,850 Commercial Tier Estimated# Monthly Annual Tiers Range s of Accounts Rate Revenue Small <4,000 sf 598 $4.00 $ 28,704 Large > 4,000 sf 2203 Calculated * $1,290,184 Annual Commercial Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I 1 1 18 888 * Commercial Revenue Based on Total Impervious Surface Area Calculated at$0.105 per 100sf Total Annual Revenue . . $2,620,738 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Example Locations: Monthly Annual Location Area Fee Cost Hoflbrau 56,475 $59.30 $711.60 American Valve and Hydrant 842,608 $884.74 $10,616.88 Ritter Lumber 154,542 $162.27 $1,947.24 Harbor Apartments 237,480 $249.35 $2,992.20 Fisca Convenience Store 18,870 $19.81 $237.72 3 7/6/01 Balancing the FY 2002 Budget ALTERNATIVE 2 $.04 Property Tax Increase Property Taxes - $.02 for Debt Service $760,000 Property Taxes - Approx. $.02 for General Fund 722,000 Selective reductions in various departments 2,518,000 Total to equal budget reduction target $4,000.000 ♦ Current property tax rate of$.635 is dedicated $33 General Fund and $305 Debt Service. ♦ Property tax rate dedicated to Debt Service increased by $.02 to fund existing debt service requirements. ♦ Property tax rate dedicated to General Fund increased by $.02 to provide funding required to reach $4 million target. ♦ Total property tax rate would total $.675 with $35 dedicated to the General Fund and $325 dedicated to Debt Service. ♦ An increase in the total property tax rate should have a positive financial impact on industrial district payments. ♦ Department reductions based on Council consensus. ♦ No Stormwater Utility Fund established. ♦ A division in Public Works (General Fund) will be established to account for operating and maintenance costs associated with stormwater. ♦ The Street User Fee would be retained as there is no identified funding for this $1.5 million program in this alternative. 4 7/6/01 Property Tax Adjustment Impact Analysis 4 cent Property Property Tax Value Increase Residential Home $ 50,000 $ 20.00 Residential Home 100,000 40.00 Residential Home 150,000 60.00 Residential Home 200,000 80.00 Residential Home 250,000 100.00 Fisca Convenience Store 158,990 63.60 4015 Eastex Freeway Ritter Lumber 350,440 140.18 2970 Washington Blvd. Hoffbrau Steaks 2310 N 1 1 th St. 355.600 142.24 American Valve & Hydrant Hollvwood & I I th St (10 accts on tax roll) 1.370,340 548.14 Harbor Apartments 3,479,830 1,391.93 4040 Crow 5 07/06/2001 FY 2002 Budget Analysis Departmental Reductions Departments offered several proposals in order to provide Council options for program/service cutbacks to achieve the 3% or more tarzet reductions necessary to balance the FY 2002 budget. Items in bold have Council consensus. 3% Potential FY01 Target Savings/Rev Reduction Strategies Budget Amount To=Target Police $18,997,400 5570,000 1. Budget to reflect vacancy trend $135,000 for sworn positions Eliminate Secretary I Position 40,000 (vacant) Budget to reflect vacancy trend for civilian positions $100,000 Community Resource Specialist (transfer to CDBG, vacant) 28,000 303,000 Fire 13,964,000 420.000 1. Reduce apparatus level 317.000 (Eliminate 6 positions,4vaeant) 2. Civilianize Fire Dispatch 57,000 3. Close Station 1 1 (limit to EMS station activity) 512.000 (Eliminate 9 positions) The apparatus reduction would entail placing Truck 4 and the Rescue Truck in reserve. Civilianization of Fire Dispatch is an item which is subject to union negotiation. An analysis of a proposal to transfer EMS operations to the Fire Department has not been finalized. Public Works 11,768,100 353.043 1. Increase Transit fares ($.25) 144,000 Charge Transit Social Services 179,800 323,800 2. Cut Transit service hours(6-9pm) 170,500 Adopt Transit Saturday schedule on weekdays (le., longer head-times) 187,000 Eliminate Transit Saturday service 136,000 493,500 1 7/6/01 EXHIBIT "B" 34c Potential FY01 Target Savings/Rev Decision Packages Budget Amount To=Tarjjet 3. Eliminate Development Services Manager(Vacant) 65,000 Renegotiate street lighting contract 40,500 General operating - Engineering 30,000 Parks general maintenance 73,300 Streets & Drainage heav} materials 15,200 General operating-Transportation 45,100 Increase parking violation fees (from $3/S 10/$10 to S 10615620) 44,400 313,500 Increased operating expenses related to the transit system as well as cutbacks in state (20%) and federal (down to 48% of operating deficit from SO"/c) funding ' to the need for adjustments to this service. General operating reductions include overtime, operating supplies, telephone, fuel & lube, vehicle maintenance, part-time and temporary wages, botanical supplies, contract services and equipment maintenance. Library & Leisure Services Library Services 1.908,1()0 57.000 1. Automated circulation system 16,200 Eliminate I~undina Center Librarian (vacant) 40,800 General operating 11,000 68,000 Recreation Services 825.800 25.000 I. Eliminate R.A.P. Program Sites 11,200 Eliminate After School Programs 4,600 General operating 8,300 24,100 General operating savings are based on closing the main library on Saturday and Sunday. Both the R.A.P. and After School programs are underutilized. Public Health 4,593,200 137,800 I. Increase Charge for Vital Statistic Records 56,900 Eliminate EMS Manager Position (vacant) 51,500 Increase EMS rates 80,000 188,400 A proposal to privatize EMS services is not being considered based on Council direction and market conditions at this time. 7/6/01 3% Potential FY01 Target Savings/Rev Decision Packages Budget Amount To= Target Central Services 6,207.00) 186,200 1. Art Museum Grounds Maintenance 3,600 General operating - Purchasing 4,000 IS Contract Maintenance (Transfer to Enterprise Funds) 39,500 Eliminate Clerk II Convention Facilities 31,000 (vacant) Defer Capital Purchases 7,500 Eliminate Golden Triangle Directory Listing 2,500 88,100 In an effort to control utility costs, a temperature policy for all City buildings will be implemented. Finance 1,219,600 36,600 1. Eliminate Performance Analyst Position (vacant) 69,000 Eliminate Accounting Assistant Position (vacant) 35,000 104,000 Human Resources 649,800 20,000 1. Eliminate Service Awards Program and 5 yr. gifts 7,500 General operating 10,000 17,500 The Service Awards banquet, including the Doris Johnson Award, would be replaced with a presentation at Council meeting. City Attorney 571,900 17,600 1. Aggressive collection for all Departments 100,000 Citv Clerk 1,148,400 34,452 1. Do not renew Municipal Court collection contract with Municipal Services Bureau (MSB) 60,000 Transfer demolition advertising to CDBG 9,600 69,600 Municipal Court will still use Ommbase/DPS Collections to service delinquent accounts. 3 7/6/01 3% Potential FY01 Target Savings/Rev Decision Packages Budget Amount To="Target Citv Wide I. Discontinue uniforms for non-field personnel 5,000 Discontinue holiday bonus (S20 grocery voucher) 29,500 Travel (10% across the board) 30,000 Eliminate Parks/Rec Administration Division (Director) 100,000 Payment, rather than in-kind, from YNIBL 50,000 Delay implementation of Compensation Study Phase 11 160,000 Originally scheduled for implementation July 20021 Eliminate Curbside Recycling (Net savings = 5234,900 in Solid Waste Fund: eliminates 6 positions) and reduce funding 50% for garbage container replacement($200,000) to provide capacity to increase the Solid Waste contribution to the General Fund by 550,000 and minimize the need for future rate increases. The sale of the recycling trucks is estimated to brML in S3�.000. however this will not increase the contribution to the General Fund. 50,000 424,500 The FY 2001 contribution from the Solid Waste Fund is 5600,000. City Charter limits utility fund contributions to 209c of operatma revenues. This equates to $1.2 million for the Solid Waste Fund. Ho�iever, current operating costs would limit the availability of funds for this transfer. Gulf Coast Recycling has agreed to be a drop off center for recyclable aluminum and paper and to pay the customer for the product. Items would nerd to be dropped off at their location at 1995 Cedar Street. Yard waste will continue to be collected and the compost will still be made available to citizens. TOTAL 562.376.700 S l.873,395 13,404,000 Total of Bold Items $2,518,000 4 7/6/01