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.