HomeMy WebLinkAboutMIN JUL 24 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 24, 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 24, 2001, 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 1:36 p.m. Associate Pastor Monty Kelly, Cathedral
in the Pines, gave the invocation. Student David Briscoe led the pledge of allegiance.
Present at the meeting were: Mayor Moore, Mayor Pro Tem Goodson, Councilmembers Smith,
Cokinos, Ames, and Samuel. Councilmember Patterson was absent. Also present were
Stephen J. Bonczek, City Manager; Lane Nichols, City Attorney; and Terri Hanks, Administrative
Assistant.
Presentations and Recognitions
One proclamation was issued: "Glenn W. Anderson Day," Friday, July 27, 2001. Coast
Guard Commander Glenn Anderson expressed his appreciation for the proclamation
honor and presented Councilmembers with his Coast Guard Unit's coin.
Public Comment: Persons may speak on scheduled agenda items 6 and 7.
Mr. Frank Kiefer, 3190 Willowood Drive, addressed Council to question the usage of the
$8 million, the availability of funding for weekend bus service, and the City's ability to
afford the interest on $8 million.
Ms. Jerrie Drew, 3066 West Crockett Street, addressed Council to submit a petition
concerning transportation services. Mayor Moore advised Ms. Drew to address the issue
at the conclusion of the business agenda.
r
Mr. Allen Lee, 5095 Maddox, addressed Council to concur with comments made by Mr.
Kiefer, and was informed of an opportunity to speak on matters relating to the FY2002
Budget after the conclusion of the work session. Mr. Lee extended invitations to Council
to attend a meeting with the Justice Department on August 21, at Our Mother of Mercy
Church. He cited the certificates of obligations as being an illegal act because of lack of
voter participation, referenced Jefferson's County's Entertainment Complex, and stated
he was calling for a federal audit. Mr. Lee voiced his opinions regarding financial troubles,
mismanagement, while comparing Councilmembers to "crack heads", and stated tax
payers should not foot the bill for Council's mistakes. He questioned $16 million in
certificates of obligation, the brick sidewalk expenditure for the Crockett Entertainment
Complex, and spoke of the Justice Department's seizure of the Housing Authority.
Consent Agenda
Approval of minutes - July 3, 2001 and July 10, 2001
Confirmation of committee appointments - No committee appointments.
A) Authorize the City Manager to submit a Memorandum of Understanding to the State of
Texas relating to the Intelligent Transportation Systems (ITS) Integration Program -
Resolution No. 01-169
B) Approve a payment (to Brystar Contracting, Inc. in the amount of $15,876) for the
installation of seven fire hydrants on Folsom Road - Resolution No. 01-170
C) Approve the purchase of four truck mounted video camera surveillance systems (from
Eagleye Technologies, Inc. in the amount of $16,400) for the Police Department -
Resolution No. 01-171
D) Approve an annual contract (with Koch Materials Company for an estimated total annual
expenditure of $34,960) for the purchase of asphalts, oils, and emulsions -
Resolution No. 01-172
E) Approve the purchase and installation of three vertical mixed flow pumps and
reconditioning of existing pumps (from Placo, Inc. in the amount of $151,570) -
Resolution No. 01-173
F) Approve the waiver of penalty and interest on nine payments made to the Jefferson
County Tax Assessor-Collector - Resolution No. 01-174
G) Authorize eminent domain proceedings to acquire a 20'temporary construction easement
(Parcel 2, Tract 2, Lots 13, 14, and 15 of the Russell & Chaison Subdivision, Pelham
Humphries Survey, A-32; Parcel 3, Lots 7, 19, 11, and 12 of the Russell & Chaison
Subdivision, Pelham Humphries Survey, A-32; and Parcel 4, a 6.9 acre tract of land
known as Lot 7 of the Charles J. Chaison 50 acre subdivision in the Northeast end of the
John Douthit Survey, A-114)for the installation of a 16-inch sanitary sewer force main to
serve the prison population - Resolution No. 01-175
Councilm ember Cokinos moved to approve the Consent Agenda. Councilmember Ames
seconded the motion. MOTION PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Goodson, Councilmembers Smith,
Cokinos, Ames, and Samuel
Noes: None
Minutes July 24,2001 Page 2
GENERAL BUSINESS
1. Consider a request for a zone change from RS (Residential Single Family Dwelling) to
GC-MD (General Commercial-Multiple Family Dwelling) District for property located north
of E. Lucas, east of Concord Road, behind the H.E.B. Store
Councilmember Smith moved to approve Ordinance No.01-050 ENTITLED AN ORDINANCE
AMENDING CHAPTER 30 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS, AND IN
PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS,AS INDICATED UPON THE ZONING
MAP OF BEAUMONT, TEXAS , BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED RS
(RESIDENTIAL SINGLE FAMILY DWELLING) DISTRICT TO GC-MD (GENERAL COMMERCIAL-
MULTIPLE FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED NORTH OF E. LUCAS DRIVE,
EAST OF CONCORD ROAD,BEHIND THE H.E.B.STORE,BEAUMONT,JEFFERSON COUNTY,TEXAS;
PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY.
Councilmember Ames seconded the motion. MOTION PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Goodson, Councilmembers Smith,
Cokinos, Ames, and Samuel
Noes: None
2. Consider a request for a zone change from RS (Residential Single Family Dwelling) to
RM-M (Residential Multiple Family Dwelling-Medium Density) District for 1.52 acres
located at 8010 Tram Road at Major Drive
Councilmember Cokinos moved to approve Ordinance No. 01-051 ENTITLED AN
ORDINANCE AMENDING CHAPTER 30 OF THE CODE OF ORDINANCES OF BEAUMONT,TEXAS,AND
IN PARTICULAR THE BOUNDARIES OFTHE ZONING DISTRICTS,AS INDICATED UPON THE ZONING
MAP OF BEAUMONT, TEXAS , BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED RS
(RESIDENTIAL SINGLE FAMILY DWELLING) DISTRICT TO RM-M (RESIDENTIAL MULTIPLE FAMILY
DWELLING-MEDIUM DENSITY) DISTRICT FOR 1.52 ACRES LOCATED AT 8010 TRAM ROAD AT
MAJOR DRIVE, BEAUMONT, JEFFERSON COUNTY, TEXAS; PROVIDING FOR SEVERABILITY;
PROVIDING FOR REPEAL AND PROVIDING A PENALTY. Councilmember Smith seconded the
motion. MOTION PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Goodson, Councilmembers Smith,
Cokinos, Ames, and Samuel
Noes: None
3. Consider a request for a zone change from RM-H (Residential Multiple Family Dwelling-
Highest Density) to GC-MD (General Commercial-Multiple Family Dwelling) District for
property located west of the abandoned portion of Old Dowlen Road, north of the new
Kroger Center
Councilmember Cokinos moved to approve Ordinance No. 01-052 ENTITLED AN
ORDINANCE AMENDING CHAPTER 30 OF THE CODE OF ORDINANCES OF BEAUMONT,TEXAS,AND
IN PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS,AS INDICATED UPON THE ZONING
MAP OF BEAUMONT,TEXAS,BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED RM-
H (RESIDENTIAL MULTIPLE FAMILY DWELLING-HIGHEST DENSITY TO GC-MD (GENERAL
COMMERCIAL-MULTIPLE FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED WEST OF THE
ABANDONED PORTION OF OLD DOWLEN ROAD, NORTH OF THE NEW KROGER CENTER,
Minutes July 24,2001 Page 3
BEAUMONT, JEFFERSON COUNTY, TEXAS; PROVIDING FOR SEVERABILITY; PROVIDING FOR
REPEAL AND PROVIDING A PENALTY. Mayor Pro Tem Goodson seconded the motion.
MOTION PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Goodson, Councilmembers Smith,
Cokinos, Ames, and Samuel
Noes: None
Mayor Pro Tem Goodson commented on property development corridors, and noted the
efforts by the Planning Commission and others for detailed development plans enabling
Council to made zone change decisions. He stated his concerns with prominent pad
sites, the adjacent Kroger Signature Store, not having the ability to control the type of
development and facilities, and high traffic concentrations at intersections. With the
development west of Major Drive, he hoped developers would consider these issues in
presenting development plans for prominent real estate effecting overall development.
4. Consider a request for a zone change from A-R (Agricultural-Residential) and RS
(Residential Single Family Dwelling) to RS, RM-H (Residential Multiple Family Dwelling-
Highest Density)and GC-MD-2 (General Commercial-Multiple Family Dwelling-2) District
for approximately 185 acres (five tracts) located on Folsom Drive at Major Drive
Councilmember Smith moved to approve Ordinance No.01-053 ENTITLEDAN ORDINANCE
AMENDING CHAPTER 30 OF THE CODE OF ORDINANCES OF BEAUMONT, TEXAS, AND IN
PARTICULAR THE BOUNDARIES OF THE ZONING DISTRICTS, AS INDICATED UPON THE ZONING
MAP OF BEAUMONT,TEXAS,BY CHANGING THE ZONING OF PROPERTY PRESENTLY ZONED A-R
(AGRICULTURAL RESIDENTIAL) DISTRICT AND RS (RESIDENTIAL SINGLE FAMILY DWELLING)
DISTRICTTO RS,RM-H(RESIDENTIAL MULTIPLE FAMILY DWELLING-HIGHEST DENSITY)DISTRICT
AND GC-MD-2 (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING-2) DISTRICT FOR
APPROXIMATELY 185 ACRES (FIVE TRACTS) LOCATED ON FOLSOM DRIVE AT MAJOR DRIVE,
BEAUMONT, JEFFERSON COUNTY, TEXAS; PROVIDING FOR SEVERABILITY; PROVIDING FOR
REPEAL AND PROVIDING A PENALTY. Mayor Pro Tem Goodson seconded the motion.
MOTION PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Goodson, Councilmembers Smith,
Cokinos, Ames, and Samuel
Noes: None
5. Consider a request for a specific use permit to allow a parking lot for a dental office in a
RM-H (Residential Multiple Family Dwelling-Highest Density) District at 3395 North Street
at 18th Street with a modification of the landscaping requirements
Councilmember Cokinos moved to approve Ordinance No. 01-054 ENTITLED AN
ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A PARKING LOT IN AN RM-H
(RESIDENTIAL MULTIPLE FAMILY DWELLING-HIGHEST DENSITY) DISTRICT LOCATED AT 3395
NORTH STREET AT 18TH STREET IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS
Councilmember Smith seconded the motion. MOTION PASSED.
Minutes July 24,2001 Page 4
Ayes: Mayor Moore, Mayor Pro Tem Goodson, Councilmembers Smith,
Cokinos, Ames, and Samuel
Noes: None
6. Consider an ordinance authorizing the issuance and sale of$8 million City of Beaumont,
Texas, Certificates of Obligation, Series 2001; levying taxes to provide for payment
thereof; and containing other matters related thereto
Mayor Moore requested City Manager Bonczek expound on bond sale issues.
City Manager Bonczek stated $8 million in certificates of obligation will be used for
completion of existing projects, including Major Drive, Concord, Neches River Hike and
Bike Trail, Walden Road, Folsom Road, downtown improvements, and Delaware Street
contingent upon proposed Federal funding.
The City's Financial Adviser Mr. Frank Ildebrando, of Dain Rauscher, Inc., reported that
eight bids were received, (Exhibit "A") the low bid was Griffin, Kubik, Stephens &
Thompson, Inc. at an interest rate of 4.6530%, SAMCO Capital Markets at 4.6620%,
William R. Hough & Co. at 4.6970%, Morgan Stanley Dean Witter 4.7001%, First
Tennessee Capital Markets 4.7197%, Southwest Securities, Inc. at 4.7296%, First
Southwest Company 4.7320%, and Dain Rauscher, Inc. at 4.7364%. Mr. Ildebrando
commented the bids were extremely good because of Council's decision to make the
certificates of obligation bank qualified. He recommended acceptance of the low bid from
Griffin, Kubik, Stephens &Thompson, Inc. and the ordinance prepared by Mr. Lance Fox
of Orgain, Bell & Tucker.
Mayor Pro Tem Goodson commented on issues related to the Neches Hike and Bike Trail
project, and questioned the effects of the issuance of debts if projects are delayed. City
Manager Bonczek responded the property legal dispute for the Neches Hike and Bike
Trail will be resolved within a reasonable period of time, and the remaining projects are
ongoing commitments. He stated there is flexibility, except for the Delaware project, and
the Crockett Street improvement project is expecting to open Thanksgiving weekend.
Mayor Pro Tem Goodson reported the first principal payment date is in 2004 which allows
for a fairly liberal construction schedule. Mr. Ildebrando commented it fits in with the City's
existing debt structure, the maturity schedule is extremely short, and the City's credit
rating has been upgraded to an "A+" stable rating.
Councilmember Smith moved to approve Ordinance No. 01-055 ENTITLED AN
ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF$8,000,000 THE CITY OF
BEAUMONT, TEXAS, CERTIFICATES OF OBLIGATION, SERIES 2001; LEVYING
TAXES TO PROVIDE FOR PAYMENT THEREOF; AND CONTAINING OTHER
MATTERS RELATED THERETO. Councilmember Ames seconded the motion. MOTION
PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Goodson, Councilmembers Smith,
Cokinos, Ames, and Samuel
Noes: None
Minutes July 24,2001 Page 5
7. Consider approving a bid for the construction of Courtroom No. 2 at Municipal Court
Councilmember Cokinos moved to approve Resolution No. 01-176 awarding bid to
Cleveco Construction Co., Inc. in the amount of$90,710 for furnishing all labor, materials,
equipment and supplies necessary for construction of Courtroom No. 2 in the Municipal
Court building. Councilmember Samuel seconded the motion. MOTION PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Goodson, Councilmembers Smith,
Cokinos, Ames, and Samuel
Noes: None
Mayor Pro Tem Goodson commented the second courtroom is currently being used,
requested staff investigate the effects on judges and clerks and the impact of courtroom
functions during the ninety day abatement period, and he questioned if any additional
space is available until the courtroom is fully functional.
8. PUBLIC HEARING: Curfew Ordinance
Consider an ordinance recreating Chapter 9, Beaumont City Ordinances, establishing a
curfew form inors, hours and definitions, providing a curfew during school days and hours,
providing a penalty clause, citing specific exemptions and defenses, providing an effective
date, and providing for severability
Ordinance No.01-056 ENTITLED AN ORDINANCE CREATING A NEW CHAPTER 9 ESTABLISHING
A CURFEW FOR MINORS; ESTABLISHING HOURS AND DEFINITIONS; PROVIDING A PENALTY
CLAUSE; CITING SPECIFIC EXCEPTIONS AND DEFENSES; PROVIDING AN EFFECTIVE DATE;
PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL was introduced.
The public hearing opened at 2:12 p.m.
Mr. Allen Lee, 5095 Maddox, addressed Council in support of the curfew ordinance, and
cited that teenage African-American males are being targeted, harassed, and arrested by
police. He expressed his views of punishment which included probation for first offense
and community service for both parents and teenager for any additional offenses. Mr. Lee
spoke from his personal experiences and believes young people are law abiding, and
supported the exemptions for working teenagers.
Pastor M.L. Johnson, (no address given), addressed Council to confirm curfew times,
spoke in favor of the curfew ordinance which protects the younger generation and keeps
violence down, and he supported probation for first offense and community service for
parents and the teenager for repeat offenses.
Mr. Leroy Lewis III, 1201 Euclid, addressed Council in favor of the curfew ordinance,
stated teenagers should not be walking the streets at night, and extended his
appreciation.
The public hearing closed at 2:17 p.m.
Minutes July 24,2001 Page 6
Councilmember Cokinos moved to approve Ordinance No. 01-056. Mayor Pro Tem
Goodson seconded the motion. MOTION PASSED.
Ayes: Mayor Moore, Mayor Pro Tem Goodson, Councilmembers Smith,
Cokinos, Ames, and Samuel
Noes: None
WORK SESSION
* Review and discuss City Manager's FY 2002 Budget proposal
City Manager Bonczek acknowledged Standard & Poor's upgrading of credit rating from
"A" to "A+" which continues to reflect a financial position that has remained sound and
strong, he recognized the City's policy to increase the fund balance to 13.5 percent
causing the rating change was from positive to stable. He added the Moody's"A1"rating
was a reflection of the City's position as a regional commercial center with the ability to
support long term economic stability, and was again rated as stable based on beliefs that
City leaders will continue to manage growth and maintain reserves at a consistent level,
and accomplishments recognized by credit agencies has increased capacity to borrow at
good rates (Exhibit "B").
City Manager Bonczek will include a short presentation on major issues with the submittal
of the Fiscal Year 2002 proposed budget on August 14, 2001. Along with the Financial
Improvement Team and business leaders, he commented presentations will be made in
each Ward to continue dialogue and participation with citizens, neighborhoods, and
businesses in the community, and the budget process will continue prior to Council's
decision no later than September 27, 2001.
City Manager Bonczek stated work will continue on the $4M budget target, he proposed
implementation of a storm water fee to generate almost $2 million in revenue for nine
months of the budget year assuming Council approval by July 31, 2001. He suggested
$2.8 million in budget reductions, elimination of the street user fee, and reported additional
funds could be generated to address local street repairs, but recommended borrowing the
money through certificates of obligation to repair local and major streets.
City Manager Bonczek commented on the storm water utility, funds would only be used
for operations and maintenance, no capital expenditures, exemptions are in place for
churches, schools, and county, and expected annual revenues of approximately $2.6
million. He stated budget reductions plus new items would be presented, the budget
analysis is not finalized, the budget is an ongoing process, and new information must be
adjusted. Regarding sales tax, City Manager Bonczek remarked he hoped to see a
positive trend, spoke of the unpredictability and the effects of shortfalls, and the inability
to make assumptions. He emphasized that staff will continue to analyze all aspects of the
budget, expenditures, and potential revenues.
City Manager Bonczek stated he is proposing no increases in property taxes which is
currently $.635 ($.33 applied to the general fund and $.305 applied to debt service) and
a$.02 shift into debt service from the general fund will generate approximately $760,000.
Minutes July 24,2001 Page 7
He stated the appraisal district gave final values of approximately $3.9 billion which is
approximately 3.4% increase over the year 2000, $.01 of property tax is now $380,000
(Exhibit "C")
With the elimination of the street userfee, City Manager Bonczek proposed street projects
becoming a part of the capital improvement program (CIP) to be addressed through
normal funding mechanisms, and additional monies generated would provide increased
borrowing capacity for many local street repairs. He stressed with the elimination of the
street user fee, the City would not loose the capacity to address street needs of the
community. Mr. Bonczek stated the total shift from the general fund to debt service would
be almost $.04, or$1.5 million, $.29 to the general fund and approximately $.34 for debt
service, and a substantial amount of property tax would be applied towards debt.
City Manager Bonczek proposed implementing the reduction of fire apparatus level which
allows for the elimination of six positions,four which are vacant and two by attrition, saving
$317,000.
City Manager Bonczek proposed increasing transit fares from $.75 to $1.00, eliminating
transit services from 6:00 p.m. to 9:00 p.m.fora savings of$171,000, restoring full service
on Saturday, and the social services revenue estimate has been revised to$100,000. He
is also proposing to accommodate individuals to get to and from work by restoring full
transit services from 6:00 a.m. to 9:00 a.m. and again from 3:00 p.m. to 6:00 p.m., stating
full service would be during the morning and evening rush hours with longer head times.
City Manager Bonczek confirmed the elimination of the vacant Administrative Assistant
position in Finance, and defeasance of 1991 housing bonds generating approximately
$185,000. He spoke of seeking new opportunities to reduce costs and generate monies,
and stated if a property tax increase is considered, it would be an increase of$.03 or less.
City Manager Bonczek responded to Councilmember Samuel's questions that a hiring
freeze has not been implemented and the amount of vacancies filled has been for
essential positions. He added that a hiring freeze would create problems for the
organization because of the inability to fill critical positions, attrition is not the most efficient
way to eliminate positions, and added the issue has been aggressively and selectively
reviewed. Mr. Bonczek mentioned a hiring freeze would place additional stress and
burden on existing employees, remarked it should be a last resort which would create
difficulties, and he referenced the impact of the vacant Finance Officer position as an
example.
Councilmember Samuel suggested the possibility of freezes on some of the vacant
positions. He shared his experience of riding the bus and conversations regarding the
elimination of the bus services, of which 75 percent of transit riders stated they needed
the bus service to get to and from home and work, and noted extreme weather conditions
while waiting fifteen minutes for the bus. He stated what is a luxury for some is a necessity
for others, and requested consideration before moving toward the elimination of services,
particularly if related to sales tax and unemployment.
Councilmember Samuel requested looking at overall city operations and requested the
City Manager return with an additional $1.5 million in reductions before cutting bus
Minutes July 24,2001 Page 8
services. He commented he was not proposing layoffs, but was proposing efficiency in
staffing and identifying positions that could be eliminated. Councilmember Samuel
suggested addressing non-intensive positions and not the labor intensive positions and
employees be moved to a temporary pool to avoid layoffs. He commented on the
continuous increase of personnel while being at the helm of innovative technology, and
the importance of insuring that every department is efficient. Councilmember Samuel
requested additional options and new cuts across the board before any new storm water
fee, tax increase, or cutting of essential services is imposed.
City Manager Bonczek stated the vacancy list is managed aggressively, his recommended
eliminations would involve layoffs to generate additional cuts, and if the direction is no
layoffs, there would be restrictions. Mr. Bonczek explained there is always an opportunity
to have another job, every week the vacancy list is reviewed by staff, and reductions will
be difficult without considering layoffs.
Councilmember Samuel questioned the restrictions and suggested a combination of
eliminating positions by identifying positions through attrition or vacancies, targeting
positions, having individuals move to vacant positions, and looking at options to layoffs.
Mayor Pro Tem Goodson confirmed the vacancy list does not include in the proposed
eliminated positions, commented Council was not looking to have layoffs, but in the
business of providing services it may become inevitable. He concurred with making
additional cuts before imposing any new fees or tax increases, and commented on being
aggressive by eliminating positions before the end of the budget year and possible
department retooling. Mayor Pro Tem Goodson stated he was not necessarily in favor of
a hiring freeze unless by force and preferred departments propose their own cuts because
of the ability to identify critical positions.
Mayor Pro Tem Goodson stated constituents have expressed wanting confidence that
every effort to manage the expense side of the budget is undertaken before supporting
any revenue increase, and they believe the cuts are fairly extensive but are not nearly the
extent of the budget deficit. He was in agreement of reviewing all costs, stated reductions
in transportation services effecting the ability of citizens to make a living not being one
of his goals, and concurrent reductions would be required if transit costs are returned to
the budget. He spoke of transit cost recovery, requested no additional budget surprises
or short falls to the public, and hoped the final budget adequately considers costs in the
liability fund, employee benefits, and anticipated contract negotiations. Mayor Pro Tem
Goodson commented on sales taxes, revenue budget projections, anticipated collections,
concerns with being too aggressive in revenue projections, elimination of services in
order to keep the budget balanced, and referencing the weekend library closure.
Councilmember Ames recommended weekly review of job vacancies, not aggressively
budgeting sales tax as in the past, and noted the large impact of employee benefits and
health care. She wanted to make it clear there will be no surprises to citizens and an
assurance everything is keep in the open.
City Manager Bonczek acknowledged additional information will be available when
employee benefit bids are received, expressed confidence savings will be realized with
Minutes July 24,2001 Page 9
the services of a consultant, and also projected increased health care costs. He could
not promise there would not be anymore surprises, but promised to quickly present them.
Councilmember Smith acknowledged June projections for health care costs are not over
budget, the current health care contract ends in December, increased costs in the liability
fund for budget year 2002 are very substantial, as well as, the impact of worker's
compensation claims.
Mayor Pro Tem Goodson confirmed a reduction of employee benefits would be realized
with staff cuts. He challenged privatization, referenced billing and collections at Lamar
University, the usage of privatization for bad debt collections, and expressed a desire to
be aggressive in providing the best service. Mayor Pro Tem Goodson stated it is
important to note the approval of the sale of bonds for projects, the Hike and Bike Trail
and Delaware projects needing money readily available to match the portion of funding
commitments, and partially completed projects like Concord Road would loose funding if
not completed. He stated it the importance of understanding budget cuts while at the
same time expending funds to complete projects, and noted cost comparisons of the initial
expenditure for Concord Road had it been paid out by the 1980 bond issue. Mayor Pro
Tem Goodson spoke of looking aggressively at costs cuts and at privatizing services that
simply could be done more economically by others.
Councilmember Samuel commented on the eliminated Performance Analyst position
which is a position responsible for insuring the full utilization and effectiveness of
employees. He stated it was suggested to him that outside individuals perform an
efficiency analysis and cited an example of ExxonMobil providing the Beaumont
Independent School District with an individual to ensure efficient utilization of funds at no
cost. Councilmember Samuel suggested that an individual oversee the operation of the
city as an additional safeguard to ensure efficiency, exploring the option of local industry
providing someone at preferably no cost, and challenged the Chamber to investigate the
possibility.
Mayor Pro Tem Goodson stated it is the City Manager's responsibility to manage the City
and it's resources. He suggested initiating a committee with expertise in many facets of
personnel and fiscal management, and using the assistance of a various disciplines to
work with the Financial Improvement Team (FIT) to provide performance evaluations of
the departments.
Mayor Moore spoke of discussions with City Manager Bonczek regarding the number of
employees, current vacancies, and the enactment of the 20-year retirement program. City
Manager Bonczek stated there were less than ten employees who took advantage of the
incentive plan and spoke of instituting a new incentive plan.
City Manager Bonczek commented on not having a true indicator of health care costs until
contracts are negotiated, conversations regarding privatization, and the 5" EMS unit
costing $400,000 which includes the unit, staffing, and med station.
City Manager Bonczek suggested using recognized experts such as the Public Works
Association to analyze every aspect of the publicworks operation and submit a report with
suggestions, and suggested exploring various opportunities.
Minutes July 24,2001 Page 10
Mayor Moore encouraged further departmental bench marking against private industry
and suggested additional consolidation and reduction of manpower. He stated some
believe nothing has been addressed on this process until now and noted there are a
number of different programs in place addressing these issues. The Mayor reminded
everyone of the major public outcry to continue EMS, and spoke of the costs involved,
response times affecting all communities and the Tram Road area causing the greatest
distress, and Council's decision to move forward with the fifth unit. He added it was
Council's decision to move forward with extending evening bus service to 9:00 p.m.,
spoke of readdressing the issue because of low ridership, acknowledged $170,000 loss
in State funding, and extended transit hours costing $340,000 or almost $.01 on the tax
role. Mayor Moore stated Councilmembers have provided opportunity for additional
options, will continue with the assistance of others, and citizens are better understanding
the costs of various services.
Councilmember Samuel thanked Staff and appreciated the manner and timeliness in
which information was presented and noted the importance of their efforts in continuing
to make suggestions and revisions.
Councilmember Smith spoke of EMS and the many problems existing within the two
emergency rooms. She stated the paramedics are having problems will releasing patients
because of room shortages, and the issue is being addressed at both Baptist and Saint
Elizabeth hospitals by enlarging their emergency rooms. She added Baptist Hospital is
building 45 additional rooms which will help, but both hospitals are at full capacity most
of the time.
City Manager Bonczek commented a report will be presented to Council addressing EMS
issues and EMS integration into the Fire Department.
To conclude, City Manager Bonczek stated there have been partnership meetings and
budget summits since the his employment in July 1999, reorganization occurred, a budget
was submitted with savings from position eliminations in August 1999, and it has been an
ongoing process to control costs. Mr. Bonczek reminded everyone of the
accomplishments over the last two years without raising property taxes, noted the audit
reports and bond ratings confirming the City's leadership, and reiterated the issues are
a challenge and not a crisis.
COMMENTS
• Councilmembers comment on various matters - Councilmembers declined comment.
•City Manager Report-Central Business District Parking Review, Insurance Consultant,
Counting Library Users, Bond Rating, Shots Across Texas and Casual/Seasonal
Employees
City Manager Bonczek acknowledged the recent attention of parking meters which
generate parking availability in the central business district, and commented on
addressing parking meter data and information. He reported beginning August 1, 2001
parking meters will be calibrated to ensure one-hour free parking and covering parking
Minutes July 24,2001 Page 11
meters in three block areas to investigate turnover and effects, and the results of the pilot
program will be reported. City Manager Bonczek expressed excitement concerning an
insurance consultant's assistance with health benefit proposals and requests for proposals
(RFP's) and expects substantial savings.
City Manager Bonczek responded to Council questions regarding seasonal/casual
employees and costs, stated sometimes there are from 200 to 300 employees of the
casual status at hourly rates and no benefits, the additional expense in full time
equivalence would be approximately $1.2 million, and stressed the importance of using
casual employees being good for overall operations and makes financial sense. City
Manager Bonczek reported the City was mentioned in the April 16, 2001 issue of
Newsweek, an article in George Will's column noted Beaumont and Spindletop and the
importance of the community in the oil economy.
* Public Comment (Persons are limited to three (3) minutes).
Ms. Jerrie Drew, 3066 West Crockett, addressed Council requesting reinstatement of the
transit bus route on Bretham and Hollywood, and told of the arduous plight of having to
walk through muddy trails near Compton Chapel to reach a bus stop. Ms. Drew submitted
a petition with 135 signatures and suggested a compromise of having a bus stop on 4th
and Hollywood rather than 4th and Fannin.
City Manager Bonczek responded the bus route was revised several times and spoke of
limited ridership and narrow streets for buses to transverse.
Mr. Allen Lee, 5095 Maddox, addressed Council to announce a meeting with the Justice
Department on Tuesday, August 21, 2001 at Our Mother of Mercy Church. He claimed
the forum will address various services, discrimination, and equal representation. Mr. Lee
voiced his opinion regarding the storm water fee and stated it would also be addressed
by the Justice Department. He announced he was calling for a Federal audit, cited the
L.L. Melton Y, and spoke of the bus system being managed by a Florida company. Mr.
Lee suggested a local non-profit transit authority for better bus service, claimed Council
uses "crack head mentality," noted his idea for bus wrap arounds with corporate
sponsorship to produce revenues, cited mismanagement, and spoke of term limits.
Ms. Eula Mae Harmon, 1725 East Lucas, addressed Council in support of keeping bus
services and expressed appreciation to Councilm embers for their support. She stated she
was a firm believer"that you know where you have been, but you do not know where your
going." Ms. Harmon felt blessed not having to ride the bus anymore, related her
experiences of using the bus service until she was 19 years old, and concluded there are
many people who need the bus service.
Ms. Ida Duplechin, no address given, addressed Council to mention the many
organizations in which she participates, interest in the bus service because of her inability
to drive, and introduced her service dog, Lily, trained for sight and hearing impairments.
She commented on her blindness disability and usage of the transit services, and read
acronyms from the mission statement "I CARE" as they applied to transit services. Ms.
Duplechin spoke of the country of France's fund raising efforts to complete the Statue of
Minutes July 24,2001 Page 12
Liberty, and suggested not denigrating those same fund raising functions for the bus
system. She requested Council review managerial issues and efficiency of departments,
avoid layoffs, realize the full impact of actions today, and submitted letters (Exhibit "D")
and signature petitions.
Mr. Frank Kiefer, 3190 Willowood, addressed Council concerning the impact of Jefferson
County's appraisal, increased property values, and revenue from tax reappraisals. He
suggested improvements for handling Port of Beaumont cargo receipts, acknowledged
the influx of new businesses, and spoke of the hotel occupancy tax increase. Mr. Kiefer
spoke of his employment in industry, times when salaries and benefits were cut to stay
competitive, and suggested the same be considered. He recommended not laying off
Firemen and Policemen, and quoted a Bible verse, "No greater love has a person than
one who lays down his life for another'.
Ms. Kay Owens, 3910 Threadway, addressed Council to extend appreciation to
Councilmember Samuel for his comments regarding the bus transit system. Ms. Owens
reiterated the importance of the Beaumont Municipal Transit, recommended community
awareness of citizens without transportation, and she emphasized a quotation by Former
First Lady Nancy Reagan"a mind is a terrible thing to waste" because students also utilize
the transit system. She commented the extended hours service has allowed her to
participate in special after hour projects at Lamar Institute of Technology, requested
consideration in not depriving bus riders, and encouraged expanded public transportation
for citizens to thrive and grow within the City.
Ms. Gethrel Williams, address not given, addressed Council to suggest using the Lamar
University Economic Department for budgetary assistance Ms. Williams spoke of
collective bargaining for policemen and firemen, and made comparison of civilian
employees as having collective begging. She commented on recommendations made in
the Condrey report to adjust salaries to position descriptions, Employees being unaware
the October 2001 increase being delayed until July 2002, and requested Council
consideration in preparing the budget.
Mr. Elliott Williams, 4875 Laredo, addressed Council in opposition of bus reductions and
spoke of borrowing money for street improvements and extending bus services. He
suggested increasing fares while increasing services, adding Sunday bus service, and
expressed his need for the bus service.
Mr. Bill Proctor, 4340 Westridge, addressed Council to request a meeting with the City
Manager to express his ideas concerning the transit system and suggested performing
ridership comparisons for both the Special Transit Service ( STS ) and the fixed route
system after rates are raised.
Pastor M. L. Johnson, House of Prayer, 3995 Taliaferro Street, addressed Council to
praise Councilmember Samuel for riding the buses and commented on conditions and
delays associated with transit services. He spoke in opposition of cutting bus services and
submitted a petition with 463 signatures of concerned citizens wanting services to remain
the same and will submit additional signatures at the next Council meeting. Pastor
Johnson referenced the impact of citizens who depend on mass public transportation to
Minutes July 24,2001 Page 13
get to and from work, and requested Council to not consider imposing a negative impact
on the community.
Mayor Moore acknowledged the 463 signatures of riders who presently use the bus
service, and stated they are people like the rest of us who would like to see the bus
services continue.
Mr. Leroy Lewis, III, 1201 Euclid, addressed Council to request donations for the South
East Texas Food Bank which are currently being accepted at local Market Basket Stores.
Mr. Lewis claimed citizens want changes, spoke of lack of progress in Ward IV,
questioned where tax dollars are spent, and requested a letter from Mayor Moore on the
subject. He spoke of elderly citizens suffering, living on fixed incomes, and need for
elderly programs. Mr. Lewis suggested collecting additional revenues for bus services and
not laying off bus drivers who have families to support, and compared transit services with
San Francisco, California's transit services. He commented on a recent bank robbery and
made suggestions for better police protection.
Mr. Roy Wells, Beaumont Chamber of Commerce representative, addressed Council,
concerning a resolution (Exhibit"E") in opposition of establishing a storm water utility fee
and any tax increase. He offered the Chamber's support and pledged to work together.
Mr Carrie Pierce, on behalf of the Home Builders Association, addressed Council to
submit a resolution (Exhibit "F") in opposition of storm water utility fees and any tax
increases, acknowledged representing approximately 40 builders and 80 suppliers, and
concurred with the Chamber of Commerce.
Mr. Rocky Chase, owner of the Hoffbrau restaurant and Hanger Bar& Grill at the Airport,
addressed Council as a representative of the Restaurant Association and as President of
the Sabine Area Restaurant Association. He spoke of his personal experiences in
business operations, agreed with comments made by Councilmember Samuel and Mayor
Pro Tem Goodson concerning additional reductions, expressed appreciation in seeing the
process work, and hoped Council continues in the right direction.
Mayor Moore commented all Councilmembers have the same genuine concerns such as
where we are, where we need to go, and how to get there. He expressed appreciation
to the Chamber of Commerce, the Restaurant and Home Builders Associations for their
comments.
Mr. Gene Martin, 856 Palermo Drive, addressed Council in opposition of bus services
being reduced, spoke of his usage of transit services, difficulty in keeping a job without
transportation, and reductions would impact his ability to work. Mr. Martin claimed
businesses are being discriminatory because of their lack of confidence in public
transportation, he suggested extending and improving bus hours to promote employer
confidence, and extended appreciation to Councilmember Samuel.
Ms. Linda Miller, President of the Beaumont Board of Realtors, addressed Council in
support of the resolution presented by the Beaumont Chamber of Commerce, spoke of
increased taxes and the storm water utility fees being detrimental to businesses,
apartment dwellers, and residents. Ms. Miller commented on Council's fiduciary
responsibility to citizens and taxpayers and appreciated consideration.
Minutes July 24,2001 Page 14
Ms. Tina Prince, President of the Apartment Association of South East Texas, addressed
Council to submit a resolution in opposition of the implementation of the storm waterfees,
and concurred with comments made by the Chamber of Commerce and the Board of
Realtors ( Exhibit "G").
Ms. Bessie Chisum, sole proprietor of Chisum Resource Management, addressed Council
as a resident and member of the small business community, stated she recognized
Council's commitment to the citizens of Beaumont, spoke of Council's thankless
challenging job, and expressed appreciation for their concerns of the business community.
Mayor Moore extended appreciation to the audience, and acknowledged commitments
made by the entire Council in avoidance of additional taxes or fees for services, the
dilemma of shrinking revenue sources for municipalities, and hoped citizens are making
the same outcry to other governmental entities within the community and region. He
commented that within a ten year period Council has imposed one tax increase and one
tax decrease, stated his beliefs in the process as citizens communicating effectively in
Council and neighborhood associations, and spoke of the submittal of group resolutions.
Mayor Moore spoke of partnership with the Chamber, their assistance with economic
development, and noted increased funding contributions for various studies in efforts to
study overall productivity to bring about quality of life references for the entire community.
He commented on citizens and businesses moving forward, opportunities for citizens to
utilize transportation services, transportation costs, and wanting to address citizen needs.
Mayor Moore commented on community interests variances in different parts of the
community, economic development, smart growth, and the movement of raising and
growing a tax base. He reported the dilemma in moving forward with $700,000 for a
street project, even though new development brings about economic progress including
new home and school construction, and added funding maybe jeopardized for allocations
to support various entities promoting and developing businesses and partnerships. Mayor
Moore spoke of appreciation of the time spent with the Chamber in making various
revenue assessments, Federal government funding continues to shrink as demands
continue to increase, and government is truly local.
Mayor Moore commented on the importance of employees, maintaining a job, and levels
of integrity as being very important to Council. He addressed statements made on
freezing salaries, and stated there are tough decisions in denying an employee what he
hoped for and even tougher if an employee loses a job because revenues are not
available. He encouraged suggestions, noted budget discussions beginning a year and
a half ago, expenditures are based on community needs, and reiterated concerns of the
quality of life of the entire community. Mayor Moore commented debt service is paying
for completed projects and acknowledged the benefits of the projects, and requested
further discussion with the Chamber to get closer to the true issues.
In conclusion, Mayor Moore discussed continuance of infrastructure repairs, the increased
costs in delaying projects, and complex decisions in prioritizing projects to keep harmony
and balance. The Mayor looked forward to meeting with citizens and business leaders,
reminded the audience this is a challenge for our City and this is not a crisis, and proudly
stated Beaumont is one of the hub cities of South East Texas, reassured citizens the
budget will be balanced, and acknowledged Council's needs for citizen input.
Minutes July 24,2001 Page 15
EXECUTIVE SESSION
Consider matters related to contemplated or pending litigation in accordance with Section
551.071 of the Government Code:
Jim Rideaux d/b/a JR's Automotive Small Business Loan
There being no further business, the meeting adjourned at 3:58 p.m.
David W. Moore, Mayor
-7.�;aa,K &-, -
Terri Hanks, Administrative Assistant
Minutes July 24,2001 Page 16
TABULATION OF BIDS
The City of Beaumont, Texas
Certificates of Obligation
Series 2001
Selling: July 24, 2001 @ Noon
Name of Bidder Effective Interest Rate Net Interest Cost
Griffin, Kubik, Stephens & Thompson, Inc. 4.6530% 4,220,129.17
SAMCO Capital Markets _ _ _ _ _ 4.6620% _4,228,697.92
William R. Hough &_Co. _ _ _ _ _ _ _ 4.6970% _4,260,050.00
Morgan Stanley Dean Witter _ _ _ _ 4.7001% 4,262,860.00
First Tennessee Capital Markets 4.7197% 4,280,650.00
Southwest Securities, Inc. 4.7296% 4,289,613.54
First Southwest Company 4.7320% 4,291,784.38
Dain Rauscher, Inc. 4.7364% 4,295,811.46
EXHIBIT "A"
The City of Beaumont
Municipal Bond Bidding for- NEW2001CO
Dated Date=08/01/2001 Cert.of Oblig.Series 2001 Delivery Date=08/28/2001
Griffin,Kubik,Stephens&
Thompson,Inc.
Maturity Terms Par 5000 Bond Years Coupon Yield Price Call Information
1 03/01/2004 - 200 516.6667 4.400000 4.400 100.000
2 03101/2005 220 788.3333 5.000000 5.000 100.000
3 03/01/2006 230 1,054.1667 5.250000 5.250 100.000
4 03/01/2007 - 250 1,395.8333 5.300000 5.300 100.000
5 03101/2008 -- _- 300 1,975.0000 6.000000 6.000 100.000
6 03/01/2009 -- - 400 3,033.3333 6.000000 6.000 100.000
7 03/01/2010 - 400 3,433.3333 6.000000 6.000 100.000
8 03/01/2011 750 7,187.5000 6.000000 6.000 100.000
9 03/01/2012 750 7,937.5000 4.500000 4.500 100.000
10 03/01/2013 -- 750 8,687.5000 4.500000 4.500 100.000
11 03/01/2014 --750 9,437.5000 4.600000 4.600 100.000 -
12 03/01/2015 750 10,187.5000 4.700000 4.700 100.000
13 03/0112016 750 10,937.5000 4.250000 4.250 100.000
14 03/01/2017 750 11,887.5000 4.000000 4.000 100.000
15 03/01/2018 750 12,437.5000 4.000000 4.000 100.000
Tote/s $8,000 90 696.6667
Total Par Amount 8,000,000.00
Gross Production 8,000,000.00 100.000000%
Profit&Retained 0.00
Bid 8,000,000.00 100.000000%
Gross Interest 4,220,129.17
Premlum!(Discount) 0.00
Accrued Interest 28,893.76
Net Interest 4,220,129.17 4.653016%=100 x(4,220,129.117+0.00+0.00)+(1,000 x 90,696.6667 bond years)
4,191,236.42+(0.00)+{8,000,000.00•8,000,000.00)
80380 NIC a 4.651932%==e> 100 x- ----
11.262083 WAM years x 8,000,000.00
All Costs Incl.TIC 4.689276% to 08/01/2001
All Costs Incl.TIC 4.887740% to 08/28/2001
Federal Arb Yield 4.687740% to 08/28/2001
Accrued Interest 28,893.75 First Coupon Date=03/01/2002
Per Diem 1,070.139
Average life 11.337 years
SEAUGO01:NEW2001CO 0712412001 @ 12:24 v5.61
:7 2^/2001 18:01 ET REF: N0042748.0001 FR:MOODYS T0:4098803113 Page 1 of 2
ATTN: Kandy Daniel
+ of Beaumont
MOODY'S ASSIGNS AN Al RATING TO CITY OF BEAUMONT, TX $8 MILLION CERTIFICATES
OF OBLIGATION, SERIES 2001
APPROXIMATELY $89 MILLION IN DEBT AFFECTED lci
Beaumont (City of) TX 1 .
tanicipality
Texas 1
Rating
1
Issue Rating
Certificates of Obligation, Series 2001 Al
Sale Amount $8,000,000
Expected Sale Date 07/24/01
Rating Description General Obligation Limited Tax
NEW YORK, July 20, 2001 -- Moody' s Investors Service has assigned an Al rating
,u cne City of Beaumont's $8, 000,000 Certificates of Obligation, Series 2001 .
Concurrently, Moody' s affirms its Al rating on the city's outstanding general
obligation debt. The rating reflects a moderately growing tax base, which
er�ains partially concentrated in petrochemical activity, a satisfactory level
ofE General Fund reserves given the city's revenue stream, and a manageable
debt position. Proceeds from the current issue will provide funds for street
improvements.
Beaumont is located approximately 90 miles east of Houston and 35 miles north
the Gulf of Mexico. The local economy is a natural basin producing oil, gas
s-j-lfur and salt. The area is heavily dependent on refining and petrochemicals,
and the cyclical nature of the industry was a driving factor in stagnant
population growth between 1990 and 2000. Recently, the city has benefited from
increased business growth in the service sector, including call centers for
technical support and other back-office operations. Unemployment, 6.9% in
a-ril 2001 , is higher than the state rate, but lower than the 7.6% rate
-sported during the same period in 2000. The city's tax base is a healthy $3.9
billion and has experienced a moderate average annual growth of 3.6% over the
rast five years . Commercial and residential building permits have increased
consistently, if modestly, for the past four years. Moody' s believes the
city's position as a regional center and its proximity to the Houston
7etropolitan area will help support long term economic stability.
__-,-' s General Fund reserves increased from $7 million in 1998 to $9
m4_11ion in 2000, which was 13.5% of fiscal 2000 G.F. revenues. Management
plans to draw down approximately $2 million in fiscal 2001, setting reserves
within a range consistent with its established goal of 8-10%. Beaumont
continues to rely on sales and use taxes, which were approximately 34% of 2000
=avenues. Sales tax revenues have experienced only one minor decline since
X990, but officials anticipate fiscal 2001 sales tax returns will be lower
than those from the previous year, consistent with similar drops anticipated
throughout the state. Fiscal 2000 property taxes provided 30%, and 14%
consisted of payments in lieu of taxes (PILOTS) , mostly from petrochemical
companies. The PILOT contracts represent payments (calculated via a formula)
=cm companies in the city' s extra-territorial jurisdiction (ETJ) , made in
exchange for the city' s promise not to annex the ETJ. These contracts, last
signed in 1995, expired this year and are currently being renegotiated. City
officials plan to complete the new contracts by fall 2001 . Historically, the
EXHIBIT "B"
^7 2"2001 18:01 ET REF: NOOD2748.0001 FR:AOODYS TO:4098803113 Page 2 of 2
:_ =tracts have included escalator clauses that resulted in annual payment
increases . Moody' s anticipates that this revenue source will be at least
consistent with historical experience.
Beaumont's overall debt burden, at 4.3%, is only slightly above the median for
comparably sized cities . Principal payout of 56% in ten years, is average, and
elects the useful life of the assets being financed. City officials project
that an additional $20 million of tax-supported debt may be issued in the next
four years, for additional street and drainage improvements. The city has no
remaining authorization, and officials indicate there are no plans in the near
future to hold new bond elections. Moody' s believes the city's general
o'-ligation debt burden is manageable, given the city's satisfactory payout
icture, stable debt burden, and expectation of continued modest tax base
growth.
:'^'LOOK:
y' s outlook for Beaumont's general obligation bond rating is
stable, reflecting the belief that city leaders will continue to manage
growth, in order to minimize petrochemical industry concentration and to
maintain reserves at a consistent level.
KEY STATISTICS
2000 population: 113,866
Unemployment (April 2001) : 6.9%
2001 Full valuation: $3 .9 billion
2001 Full value per capita: $34, 764
Debt burden: 4.3%
Payout of principal ( 10 years) : 56 . 1%
?YC1 General fund balance: $9 .0 million (13 .5% of General Fund revenues)
PY01 Undesignated General Fund balance: $8 .9 million (13.3%)
ANALYSTS:
Jody Savant, Analyst, Public Finance Group, Moody's Investors Service
Dia-ght Burns, Backup Analyst, Public Finance Group, Moody's Investors Service
Douglas Benton, Senior Credit Officer, Public Finance Group, Moody' s Investors
Service
CONTACTS:
Journalists: (212) 553-0376
Research Clients : (212) 553-1625
CITY OF BEAUMONT date last updated: 07/24/2001
TAX RATE ANALYSIS
FISCAL YEAR 2002
July 23, 2001 Certified Roll
GENERAL DEBT SERVICE
FUND FUND TOTAL
NET TAXABLE VALUE 3,908,466,045, 3,908,466,045 3,908,466,045.
(Appraisal District certified roll-
no allowance for disputed values) Shift 2 cents from General Fd to Debt Service
i
TAX RATE/ 100 0.330' 0.305 0.635
LEVY (adjusted for disputes) 12,897,938 tj 11,920,821 24,818,759
COLLECTION RATE _ _97.0%:__ 97.0%;! _ _ _97.0%
went back to 97%coll rate from 98%IN FY2000
TOTAL ESTIMATED REVENUE 12L51 1,0 -— _11 563 000 - 24,074,0001.
LINE-.ITEM ALL-Q-A.TION
PERSONAL PROPERTY TAX(17.7%) 2,214,000; 2,047,000; 4,261,000
REAL PROPERTY TAX(82.3%) 10,297,000. -- 9,516,000 _ 19,813,000!
— 12 511 00� _ 11,563t000y - 24 074 000'
1 cent= $390,847
97%coil rate=$379,121
98% coil rate= $383,030
Current-y-ear-ir Imation,
FY01 Budget 12,100,000 11,183,000 23,283,000
FY01 YTD @ 4/30/01 11,715,808 10,828,202 22,544,010
Variance (384,192) (354,798) (738,990)1
Calculated AV by dividing by rounded budget 3,666,666,667 3,666,557,377
Actual AV per Budget Document'97% 3,666,477,103 3,666,477,103
3,779,873,302
This table does r&include delinquent collection revenue.
Increase over FY 2001 (2000 tax yr) 411,000 380,000 791,000
Increase percent over FY 2001 (2000 tax yr) 3.40% 3.40% 3.40%
EXHIBIT "C"
STATE OF TEXAS )
COUNTY OF JEFFERSON )
CERTIFICATION OF 2001 APPRAISAL ROLL FOR City of Beaumont
I, Roland R. Bieber, Chief Appraiser for the Jefferson County Appraisal District,
solemnly swear that the attached is that portion of the approved Appraisal Roll of the Jefferson
County Appraisal District that lists property taxable by and constitutes the appraisal roll for City
of Beaumont.
July 23, 2001 /Z—Z/,
Date Roland R. Bieber, RPA
Chief Appraiser
Jefferson County Appraisal District
2001 APPRAISAL ROLL INFORMATION
2001 Gross Value $4,328,946,990
2001 Market Value 14,099,222,245
2001 Gross Taxable Value $4,075,501,595
Total Number of Accounts 61,435
# of Accounts with Homestead Exemption 24,295
# of Accounts with Over-65 Exemption 8,394
# of Accounts with Disabled Exemption 945
# of Accounts with Veterans Exemption 617
# of Agriculture-Use Accounts 236
# of Exempt Accounts 3,762
2001 Taxable Value $3,908,466,045
RECEIVED BY: DATE:
TAX CALCULATIONS 221 JEFFERSON COUNTY APPRAISAL DISTRICT CITY OF BEAUMONT
7/19/2001 14.54.40 ADP3TAXC CERTIFIED 2001 APPRAISAL ROLL 12310403 PAGE 1
RATES AND * TAX RATE * HOMESTEAD LOCAL OPTION 00% * OVER SIXTY-FIVE LOCAL OPTION 17,500 * DISABILITY LOCAL OPTION 17,500
ALLOWANCES * $ .635000 * STATE MANDATED 0 * STATE MANDATED 0 * STATE MANDATED 0
GROSS VALUE IN DISTRICT ACCOUNTS SUB-TOTALS
* MINUS EXEMPT ACCOUNTS 61,435 4,328,946,990
MINUS AGRICULTURE ACCOUNTS 3,762 229,724,745 4,099,222,245
236
MARKET VALUE
PRODUCTION VALUE 24,803,060
LOSS DUE TO AG EXEMPTIONS 1,082,410
SUBJECT TO LATE PENALTY 0 23,720,650
NET APPRAISED VALUE 57,673
4,075,501.595
LOSS DUE TO LIMIT 288
ABATED ACCOUNTS 1,289,060 4.074,212,535 HISTORICAL ACCOUNTS 0 0 4,074,212,535 9 2,268,340 4,071,944,195
EXEMPTIONS
STATE MANDATED HOMESTEAD 24,295 0 4,071,944,195
STATE MANDATED 065 8,394 0 4,071,944,195
STATE MANDATED DISABLED 945 0
LOCAL OPTION 065 81394 142,842,730 4,071,944,195 3,929,101,465
LOCAL OPTION DISABLED 945 15,571,160 3,913,530,305
LOCAL OPTION HOMESTEAD 24,295 0 158,413,890 3,913,530,305
VETERAN EXEMPTIONS
EXEMPTION CODE 1 0 0 0
EXEMPTION CODE 2 a 5000 212 1,026,850
EXEMPTION CODE 3 a 7500 44 297,550
EXEMPTION CODE 4 a 10000 35 316,520
EXEMPTION CODE 5 a 12000 46 524,580
EXEMPTION CODE 6 a 12000 255 2,714,190
EXEMPTION CODE 7 a 12000 13 132,000
EXEMPTION CODE 8 a 5000 12 52,570
TOTAL VETERAN 617 5,064,260
NET TAXABLE
3,908,466,045
GROSS TAX AMOUNT
FROZEN TAX ACCOUNTS 0 24,818,782.12 **
MINUS FROZEN TAX .00
LOSS DUE TO FROZEN TAX *** .00
.
NET TAX AMOUNT
-------------00--
** GROSS TAX AMOUNT IS CALCULATED ON AN INDIVIDUAL ACCOUNT BASIS 524,818,782.12
** INCLUDES 9 PRORATED EXEMPT ACCOUNTS TOTAL PRORATED EXEMPT AMOUNT 67,715
** INCLUDES 0 0VR65 PRORATED ACCOUNTS TOTAL PRORATED 0VR65 AMOUNT 0
** INCLUDES 1 PRORATED HOMESTEAD ACCTS TOTAL PRORATED HOMESTEADAMOUNT 0
The Future of Beaumont Transit
July 23, 2001
City Council Meeting Beaumont, TX
My name is Ida Duplechin. I am a concerned citizen of Beaumont and a
member of the South Park Neighborhood Association, Lamar University
Alumni, Beaumont's Transit Advisory Committee, Spindletop Rotary,
Beaumont Chamber of Commerce, the Medical Affairs Division of the
Chamber, Chamber Ambassador, Our Lady of Assumption Catholic Church,
National Federation of the Blind, Order of the Eastern Star-Beaumont #71
and MENSA. I am a member of Leadership Beaumont 2001-2002, which
starts in August and meets from 6:00 p.m. — 9:00 p.m. I would like to
introduce Lily, my Service Dog, also.
Because of my disability, I use the Special Transit buses to shop, attend
church, attend meetings, and conduct as normal a life as possible. When
feasible, I ride the regular buses with Lily and deal with transfers and street
crossings.
My independence and mobility are at the mercy of today's City Council
vote. There are many other people with disabilities, particularly the blind,
who are waiting for your vote. We ask the question, "Is this budget
consistent with Beaumont's Mission Statement and guiding principle of`I
care"?
Integrity Doing the right thing all of the time
Sharing information with each other and those
Communication we serve
Accountability Being responsible for our actions
Treating each other with dignity and valuing
Respect our diversity
Empowerment Having the ability and commitment to act in
the public interest
EXHIBIT D
Where is the "care" in the wholesale devastation of people's lives that
depend upon public transit? While many people have joked about the
suggestions citizens offered to subsidize the transit system with pennies,
BBQ benefits and other activities, I would hope that everyone in this room
who salutes our flag and says the Pledge of Allegiance will remember the
Statue of Liberty pedestal was financed by donations, theatrical benefits, art
auctions, and prize fights in the United States. France even held a lottery to
finance the Statue itself. The restoration in celebration of the Centennial
was a private/public partnership headed by Lee Iacocca. Would you
denigrate the method of fund-raising that brought the Statue of Liberty to
our shores and then restored it?
Has an economic impact report of reducing public transit services been
prepared? What is the multiplier effect in our area of each dollar of payroll?
If a dollar in payroll continues to be spent in Beaumont at a rate between 3
to 7 times, what will happen when employees are laid off in businesses,
ranging from the transit system itself to the various businesses in town? Can
the City of Beaumont withstand the loss of sales taxes that will NOT be
collected? Will there be cost-shifting as AFDC/food stamps
/unemployment benefits payments are made? While the personal and
emotional impact of being devalued by a city whose guiding principle is "I
care" may be subjective, the economic impact can certainly be quantified
with the proper research.
It is my understanding a simple edict of"cut 3% of your budget" was issued.
This incremental method of budgeting avoids each department examining its
functions and justifying its expenditures based upon objective criteria. The
Zero Based Budgeting process requires integrity, sharing information,
citizen input on the various advisory committees and acting in today's public
interest and the future; all of these meet Beaumont's guiding principle of"I
care".
Having just celebrated Spindletop 2001, Beaumont stands in a similar
position of envisioning a great future with our new economy. We can boldly
move into recognizing our economic diamond in the rough. The City of
Beaumont is within the economic vectors of The Big Thicket and Village
Creek Parks, internationally known to birding enthusiasts who travel simply
to photograph and record birds; the growing Mardi Gras celebration in Port
Arthur; Southeast Texas Regional Airport; Crockett Entertainment District
and its proximity to the Neches River; and finally the new Entertainment
Complex on I-10 west. These rich tourism opportunities surround the
regional medical facilities, shopping/retail centers, Lamar University and
other entertainment venues.
Will Beaumont take advantage of this bold new future as the pioneers at
Spindletop did and begin the Millennium with a new vision of public transit
as an economic development opportunity to move its citizens and tourists to
places where they can spend their money? Will Beaumont innovate a new
model of moving people that is convenient for in-town travel and reduce
trips that contribute to air pollution?
As a citizen of Beaumont with deep roots in the local gumbo soil, I
recognize the opportunities to plan and avoid the problems of other regions.
My hope is that the City of Beaumont uses its guiding principle "I care" in
developing the budget as its statement of its priorities in public policy. Just
as in our personal budgets, our values are illustrated not only by the checks
written, but the checks not written.
L �
ti�lii
EXHIBIT D
Ik� 41���
Qj
Or
9 moo,.
��:�
7 72
75 RECEP,I n
C1 Y C
Inc
01 JUL 2y 02
CITY OF BEAUp,;o;yT
Position on the City of Beaumont FY 2002 Budget and FinancialPirection
July 17,2001
WHEREAS, the Beaumont Chamber of Commerce serves It members and community as a catalyst to
have a positive impact on the economic well-being of Beaumont,Texas and the surrounding region.
WHEREAS,The financial direction and economic future of the City of Beaumont is of great concern
due to the projected $4 million dollar deficit for FY 2002 and the reoccurring costs which point to
future deficit problems.
WHEREAS,The Beaumont Chamber of Commerce Is strongly opposed to the establishment of a
storm water utility fee as a means to raise additional revenue to balance the budget We favor the
adoption of a budget, which reduces and/or contains costs while maintaining essential services and
programs for all the citizens of Beaumont.
WHEREAS, the Beaumont Chamber of Commerce is also opposed to any tax increase without first
thoroughly examining areas of the operating budget,which can be reduced or eliminated through
reorganization, reengineering and other proven management techniques. A serious examination of
operating expenses and a community dialogue to prioritize reductions must occur before any
consideration of a tax increase.
WHEREAS,the long term economic and social well being of the City of Beaumont Is dependent upon
a renewed and community wide effort to grow the tax base of the City of Beaumont.
WHEREAS, a more ambitious and comprehensive economic development strategy must be enacted
which includes innovative financial incentives for targeted industries. Such a comprehensive
economic development effort must promote greater capital investment,greater job growth and actions
to stimulate and expand the manufacturing and industrial property tax base within the city limits of
Beaumont
NOW THEREFORE BE IT RESOLVED that the Board of Directors of the Beaumont Chamber of
Commerce offers its support, based upon the foregoing budget planning process, to members of City
Council for the difficult choices which must be made to resolve the short-tern budget needs of the
City of Beaumont We further pledge to work together to address our requirements for growth and
development
Approved this 17th day of July 17, 2001,
ATTEST:
R
board
EXHIBIT E
Home Builders Association
,i
of Southeast Texas
"Building Southeast Texas "
�.,: 'add-2'� - .. a 'n"r; � - •,,�,,�f�.:b tit r�d ..-:_� ,:.
985 IH-10 North • Beaumont, Texas 77706 • (409)899-1001 • (877)254-4915 • Fax: (409)899-9523 •hbaset @citexas.com
Position on the City of Beaumont FY 2002 Budget and
Implementation of Storm Water Utility Fees
July 18, 2001
WHEREAS,the Homebuilders Association of Southeast Texas is the regional organization with
members representing over 150 members who support the growth and professional development
of the homebuilding industry in Southeast Texas.
WHEREAS,the financial direction and economic future of the City of Beaumont is of great
concern due to the projected$4 million dollar deficit for FY 2002 and the reoccurring costs with
point to future deficit problems.
WHEREAS,the Homebuilders Association of Southeast Texas is strongly opposed to the
establishment of a storm water utility fee as a means to raise additional revenue to balance the
budget. We favor the adoption of a budget,which reduces and/or contains costs while
maintaining essential services and programs for all the citizens of Beaumont.
WHEREAS,the Homebuilders Association of Southeast Texas is also opposed to any tax
increase without first thoroughly examining areas of the operating budget,which can be
reduced or eliminated through reorganization,engineering and other proven management
techniques. A serious examination of operating expenses and a community dialogue to
prioritize reductions must occur before any consideration of a tax increase.
WHEREAS,the long term economic and social well being of the City of Beaumont is dependent
upon a renewed and community wide effort to grow the tax base of the City of Beaumont.
NOW THEREFORE BE IT RESOLVED that the Board of Directors of the Homebuilders
Association of Southeast Texas offers its support,based upon the foregoing budget planning
process,to members of City Council for the difficult choices which must be made to resolve the
budget needs of the City of Beaumont and to tailor what we do to meet the needs of the
community.
Approved this 18`h day of July, 2001.
ATTEST:
Stan olfrom, Presi t
EXHIBIT F
APARTMENT ASSOCIATION of Southeast Texas
Tina Prince Position on the City of Beaumont FY 2002 Budget and
President 2007-02
Implementation of Storm Water Utility Fees
Mark Fertitta
President-F7ect
July 18, 2001
Doris Cascio
Vice-President
Me»rher:;lrip
WHEREAS,the Apartment Association of Southeast Texas is the regional organization
Josh Allen with members representing multifamily owners,developers,leasing consultants,service
Vice-President
Professivrral Dcvelopiwitt technicians and suppliers.
David Evans WHEREAS,the Apartment Association of Southeast Texas providing it's members with
Vice-President
Product Serl,ices industry education and strive to better serve the housing needs of residents in
communities throughout Southeast Texas.
Brenda Clover
Vicc-President
Public Information WHEREAS,the financial direction and economic future of the City of Beaumont is of
great concern due to the projected$4 million dollar deficit for FY 2002 and the
Kathy Barrilleaux
Secretary reoccurring costs with point to future deficit problems.
Andy Burns WHEREAS,the Apartment Association of Southeast Texas is strongly opposed to the
treas"r`'r establishment of a storm water utility fee as a means to raise additional revenue to
Jim Thomas balance the budget. We favor the adoption of a budget,which reduces and/or contains
Owner Director costs while maintaining essential services and programs for all the citizens of Beaumont.
Ike Akbari
Owner Director WHEREAS,the Apartment Association of Southeast Texas is also opposed to any tax
Sam Parigi increase without first thoroughly examining areas of the operating budget,which can be
Owner Director reduced or eliminated through reorganization,engineering and other proven
management techniques. A serious examination of operating expenses and a community
Jackie Dial
Owner Director dialogue to prioritize reductions must occur before any consideration of a tax increase.
Rodney Davis WHEREAS,the long term economic and social well being of the City of Beaumont is
Associate Director
dependent upon a renewed and community wide effort to grow the tax base of the City
Les Lightfoot of Beaumont.
Associate Director
Azim Keramati NOW THEREFORE BE IT RESOLVED that the Board of Directors of the Apartment
Associate Directow Association of Southeast Texas offers its support,based upon the foregoing budget
Zia Azadi planning process,to members of City Council for the difficult choices which must be
As>ociate Direr tor- made to resolve the budget needs of the City of Beaumont and to tailor what we do to
Charlie Foxworth meet the needs of the community.
Past President
Approved this 18`h day of July, 2001.
ATTEST:
IoL --�
Charlie Foxworth,Immed. Past President
Executive Staff. Gale Sinmtons Kerri Pierce • Nichole Come--,
98-5 111-7.0 North • Beaumont, Texas 77706 • tvwivsetxaa.org • setxaarnsaol.com EXHIBIT G
(409)899-44155 • Toll free: (877)314-0557 • Fri_r: (409)899-1507