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HomeMy WebLinkAboutMIN AUG 11 1998 M I N U T E S . CITY OF BEAUMONT Lulu L.Smith DAVID W. MOORE, MAYOR Bobbie J.Patterson, Mayor Pro Tem Guy N.Goodson CITY COUNCIL MEETING Andrew P.Cokinos John K.Davis AUGUST 11,1998 Becky Ames Lane Nichols,City Attorney Ray A. Riley,City Manager City Clerk The City Council of the City of Beaumont, Texas, met in a regular session on August 11, 1998, 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 Mayor Moore called the meeting to order at 1:31 p.m. The Very Reverend Dan Dailey, Saint Michael's Antiochian Orthodox Christian Church, gave the invocation. Troop 601 Boy Scouts Greg Bush and Daniel Alter led the pledge of allegiance. Present at the meeting were: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Cokinos, Ames, and Davis. Also present were Ray A Riley, City Manager; Lane Nichols, City Attorney; and Barbara Liming, Deputy City Clerk. *Presentations and Recognitions - No proclamations were issued Mayor Moore invited Mr. and Mrs. Benny Brocato to introduce a special guest in their home. Mrs. Brocato introduced Mitsuru Akasaka, a foreign exchange student from Kawagoe, Japan. She said the student exchange program is sponsored through the Texas Four-H Foreign Exchange Program. Mitsuru's goal has been to learn about our American culture and language, and he will be returning to Japan next week after visiting with the Brocato family for four weeks. Mrs. Brocato said her family has also learned more about Japan and its culture, including origami, the art of paper folding. Mitsuru presented a letter to Mayor Moore from the mayor of Kawagoe. In return, Mayor Moore presented Mitsuru an honorary Beaumont citizenship card and a bag filled with commemorative gifts from Beaumont. Also, he sent a book and letter to the mayor of Kawagoe. Mayor Moore told Mitsuru that he had a wonderful visit to Japan recently and enjoyed being in his country very much. Convention and Tourism Director Jef Russell reported about the success of the American Fastpitch Association's girls softball tournament held in Beaumont last week. He said the economic impact was approximately$3 million and was the most significant economic event ever held in Beaumont. Mr. Russell thanked Mayor Moore and Council and other City officials for making a special visit last Tuesday to the ball park. He said the participants, their families and friends were very impressed and honored by the hospitality and interest Council extended to them. Mr. Russell thanked Tommy and Cindy Voss for promoting the tournament and being instrumental in the choice of Beaumont as the site, and his staff members, Adam Saunders and Freddie Nixon, for long hours of assistance to the tournament personnel. After further comments, Mr. Russell presented an official softball of the tournament signed by the umpire crew and managers of the two finalist teams to Mayor Moore. He said this was a fun event and truly a national championship, and that next year there will be team entrants from Canada and Mexico as well as the United States. Mayor Moore accepted the softball, thanked Council for taking a break from the retreat last week to welcome the softball players. Mayor Moore added compliments to the Emergency Medical Services, Beaumont Bone and Joint, the business that provided water, Tom and Cindy Voss, and Charlie Gibbs for their service at the tournament, and thanked Councilmember Cokinos for greeting the group and throwing out the first pitch. He reported getting many commendations from the visitors about the warmth and treatment received in Beaumont, complimented CVB staff for their planning and follow up, and said the winning team was a gracious champion, even in 105 degree weather for the final game. *Public Comment: Persons may speak on scheduled agenda items. No one wished to address these subjects. *Consent Agenda The following consent agenda items were considered: * Approval of the minutes of the regular meeting held July 21, 1998, and the special retreat session held July 28, 1998; * Confirmation of committee appointments -Virginia Christopher appointed to the Sister City Commission - Resolution No. 98-181 A) Approve the acquisition of properties and improvements for the Concord Road Project (Parcel No. 22: 0.029 acre out of the A. Williams Survey, 2615 St. Helena Street, $1,875, from Mr. and Mrs. Mel W. Shelander; Parcel No. 23: 0.027 acre out of the A. Williams Survey, 2705 Concord Road, $5,132, from Mike's Enterprises; Parcel No. 38: 0.016 acre out of the A. Williams Survey, 2991 Concord Road, $1,500, from Willie B. Acker and the Estate of Johnnie Lee Acker, Deceased: Parcel No. 39: 0.011 acre out of the A. Williams Survey, 2997 Concord Road, $210, from Willie B. Acker and the Estate of Johnnie Lee Acker, Deceased; Parcel No. 41: 0.020 acre out of the A. Williams Survey, 3045 Concord Road, $625, from Dorothy Hamilton; Parcel No. 6: improvements only on property out of Lot 8, Block 28, McFaddin Heights Addition, 1685 Liveoak Street, $10,000, from Odell LaVerne deBretagne; Parcel No. 23: improvements only out of the A. Williams Survey, 2705 Concord Road, $995, to Austin Ngo) - Resolution No. 98-182 Minutes;8/11/98;Page 2 B) Approve payments for relocation assistance related to the Concord Road Project (Interstate 10 to East Lucas) 1)Approve a payment of$9,505 to J. B. Automotive for relocation assistance - Resolution No. 98-183 2) Approve a payment of $6,580 to D & D A/C and Appliance Repair for relocation assistance - Resolution No. 98-184 C) Approve the acquisition of property from the Beaumont Independent School District for the Concord Road Project (Parcel No. 4: 0.517 acre out of the James Drake Survey, Abstract 18, 1650 Caldwell, for total compensation of$61,904.75 and authorize conveyance to BI SD the 14,684 square feet of the portion of the remainder of Maritime Avenue and the 10,377 square feet of the remainder of Parcel No. 7 out of the James Drake Survey, Abstract 18) - Resolution No. 98-185 D) Approve the acquisition of property for the Walden Road Project (3% of the 3-acre tract of land out of Lots 1-11 and Lots 13-16, Block 3, C. E. Smith Addition, $3,546.75, from William Arthur Roane) - Resolution No. 98-186 E) Approve the acquisition of property for the expansion of Lefler Park (3.36 acres out of Tract 131-A out of City Plat RS-1, Thomas Spear Survey, Abstract 50, $9,500, from Paul and Peter Mayeux) - Resolution No. 98-187 F) Approve Licenses to Encroach (to Mr. and Mrs. George B. Gaissert, onto the City's 7 '/2 foot utility easement, Lot 4, Block 3 , Anderson Estates Addition, located at 5710 Dellwood) - Resolution No. 98-188 and (to Rosie C. Nixon, onto two City utility easements, Lot 1, Block of the Jan Car Addition, located at 6220 Etta Lane) - Resolution No. 98-189 G) Approve contracts related to services and the purchase of materials 1)Approve an annual contract with Transit Mix for the furnishing of ready mix concrete for use in the Streets and Drainage Division/Public Works (for an estimated annual cost of $54,000) - Resolution No. 98-190 2)Approve a contract with All Star Plumbing Co. for plumbing services for all City facilities (Plumber at $47.75 per hour; Helper at $18 per hour; minimum service call, $40; 20% added to material cost) - Resolution No. 98-191 3) Approve a contract with Ureteck USA, Inc. to provide undersealing and lifting services for the Street and Drainage Division/Public Works (at $5.50 per pound, estimated annual cost of$50,000) - Resolution No. 98-192 Minutes;8/111%;Page 3 4)Approve a contract with Action Roofing Supply for materials to install a new roof on the Beaumont Civic Center upper deck ($20,160) - Resolution No. 98-193 5) Approve a contract with Absolute Environmental Services for the removal and disposal of all asbestos containing materials from the structure located at 803 Neches ($35,400) - Resolution No. 98-194 H) Approve the designation of fees/services waived in the amount of$29,137.40 as a matching contribution to the HOME Grant Program (water and sewer service, $17,587.40; $11,550 donated professional services) - Resolution No. 98-195 Councilmember Cokinos moved to approve the Consent Agenda. Councilmember Smith seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, Ames and Davis Noes: None GENERAL BUSINESS 1. Consider a request for a zone change from RS (Residential Single Family Dwelling) to PD (Port Development) District for property lying along the westerly and southerly bank of the Neches River extending to the centerline of the River Councilmember Cokinos moved to approve Ordinance No. 9844 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 PD(PORT DEVELOPMENT) DISTRICT FOR PROPERTY LYING ALONG THE WESTERLY AND SOUTHERLY BANK OF THE NECHES RIVER EXTENDING TO THE CENTERLINE OF THE RIVER, 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 Patterson, Councilmembers Smith, Cokinos, Ames and Davis Noes: None 2. Consider a request for a zone change from GC-MD (General Commercial-Multiple Family Dwelling) to C-M (Commercial-Manufacturing) District and a request for a specific use Minutes;8/11/98;Page 4 permit to allow the mixing of liquid chemicals for distribution from an existing building at 1200 Laurel Avenue at Center Street Councilmember Goodson moved to deny an Ordinance 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 GC-MD (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING) DISTRICT TO C-M(COMMERCIAL-MANUFACTURING) DISTRICT FOR PROPERTY LOCATED AT 1200 LAUREL AVENUE AT CENTER STREET, BEAUMONT, JEFFERSON COUNTY, TEXAS; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY and an ordinance granting a specific use permit. Councilmember Davis seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis Noes: None Councilmember Goodson commented that he is sorry and disappointed that the applicant and business owner was not aware of the close proximity of residential dwellings and zoning requirements before purchasing and improving the property. Councilmember Goodson asked Planning Director Steve Richardson to try to effectively communicate with commercial realtors about the need to encourage potential commercial property buyers to contact the Planning Division for zoning information before making final purchase decisions. 3. Consider a request for a zone change from RM-H (Residential Multiple Family Dwelling- Highest Density) to GC-MD-2 (General Commercial-Multiple Family Dwelling-2) District and a request for a specific use permit to allow a dog grooming business in a residence at 3580 Blackmon Lane Councilmember Goodson moved to approve Ordinance No. 98-47 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) DISTRICT TO GC-MD-2 (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING-2) DISTRICT FOR PROPERTY LOCATED AT 3580 BLACKMON LANE, 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 Patterson, Councilmembers Smith, Cokinos, Ames and Davis Noes: None Councilmember Smith moved to approve Ordinance No. 9848 ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A DOG GROOMING BUSINESS IN A RESIDENCE IN A GC- Minutes;8111198;Page 5 MD-2 (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING-2) DISTRICT LOCATED AT 3580 BLACKMON LANE, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Goodson seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Ames, Councilmembers Smith, Goodson, Cokinos, Davis, and Patterson Noes: None 4. Consider a request for a zone change from A-R (Agricultural Residential) to RS (Residential Single Family Dwelling) District for property at the south end of Barrington Avenue Councilmember Smith moved to approve Ordinance No. 98-49 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 A-R (AGRICULTURAL- RESIDENTIAL)TO RS(RESIDENTIAL SINGLE FAMILY DWELLING) DISTRICT FOR PROPERTY LOCATED AT THE SOUTH END OF BARRINGTON AVENUE,BEAUMONT,JEFFERSON COUNTY,TEXAS;PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. Councilmember Cokinos seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis Noes: None 5. Consider a request for an amended specific use permit to allow the modification of the screening requirements for Quality Care Sitter Service at 2325-35 Liberty Councilmember Smith moved to approve Ordinance No. 98-50 ENTITLED AN ORDINANCE ISSUING AN AMENDED SPECIFIC USE PERMIT TO ALLOW THE MODIFICATION OF THE SCREENING REQUIREMENTS FOR QUALITY CARE SITTER SERVICE AND PRIVATE DUTY LICENSED HOME HEALTH, INC., 2325-2235 LIBERTY AVENUE. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Cokinos, Ames and Davis Noes: None 6. Consider a request for a specific use permit to allow a kitchen counter top fabrication business in a GC-MD (General Commercial-Multiple Family Dwelling) District at 1445 Gladys Minutes;8/11/98;Page 6 Councilmember Smith moved to approve Ordinance No. 98-51 ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A SOLID SURFACE COUNTERTOP FABRICATION BUSINESS IN A GC-MD(GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING) DISTRICT LOCATED AT 1445 GLADYS, IN THE CITY OF BEAUMONT,JEFFERSON COUNTY,TEXAS. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis Noes: None 7. Consider a request for a specific use permit to allow a drinking place on property zoned GC- MD (General Commercial-Multiple Family Dwelling) in the Oaks Shopping Center at 229 Dowlen Road Councilmember Smith moved to approve Ordinance No. 98-52 ENTITLED AN ORDINANCE GRANTING A SPECIFIC USE PERMIT TO ALLOW A DRINKING PLACE ON PROPERTY ZONED GC-MD (GENERAL COMMERCIAL-MULTIPLE FAMILY DWELLING)DISTRICT LOCATED IN THE OAKS SHOPPING CENTER AT 229 DOWLEN ROAD, IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Goodson seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis Noes: None 8. Consider a request for a specific use permit to allow a financial planning and brokerage office in an existing residence in an RM-H (Residential Multiple Family Dwelling-Highest Density) District at 4184 Treadway Councilmember Smith moved to approve Ordinance No. 98-53 ENTITLED AN ORDINANCE ISSUING A SPECIFIC USE PERMIT TO ALLOW A FINANCIAL PLANNING AND BROKERAGE OFFICE IN AN EXISTING RESIDENCE IN AN RM-H (RESIDENTIAL MULTIPLE FAMILY DWELLING-HIGHEST DENSITY) DISTRICT AT 4184 TREADWAY AT COLLIER ROAD INTERSECTION IN THE CITY OF BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis Noes: None 9. Consider a request to abandon the south 10' of a 20' wide utility easement located at the rear of Lots A and B, Evalon Court Addition Minutes;8/11/98;Page 7 Councilmember Cokinos moved to approve Ordinance No. 98-54 ENTITLED AN ORDINANCE ABANDONING THE SOUTH 10'OF A 20'WIDE UTILITY EASEMENT LOCATED AT THE REAR OF LOTS A AND B, EVALON COURT ADDITION, BEAUMONT, JEFFERSON COUNTY, TEXAS. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis Noes: None 10. Consider amending Section 21-75 of the Code of Ordinances related to authorized positions in the police Department Councilmember Smith moved to approve Ordinance No. 98-55 ENTITLED AN ORDINANCE AMENDING CHAPTER 21,SECTION 21-75 TO AMEND THE GRADES AND POSITIONS IN THE BEAUMONT POLICE DEPARTMENT; PROVIDING FOR SEVERABILITY AND PROVIDING FOR REPEAL. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis Noes: None 11. Consider amending Section 26-24 of the Code of Ordinances related to school speed zones Counciimember Smith moved to approve Ordinance No. 98-56 ENTITLED AN ORDINANCE AMENDING CHAPTER 26,SECTION 26-24 OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT REPEALING SCHEDULES A THROUGH E AND ENACTING NEW SCHEDULES A THROUGH F IN SCHOOL ZONES; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. Councilmember Cokinos seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis Noes: None 12. Consider approving a contract for engineering services for the Neches River Hike & Bike Trail Project Councilmember Davis moved to approve Resolution No. 98-196 authorizing a contract with Traffic Engineering & Design Systems, Inc. (TEDSI) in the amount of $397,004.85. Councilmember Goodson seconded the motion. MOTION PASSED. Minutes;8111198;Page 8 Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis Noes: None Councilmember Cokinos confirmed that this is a fine project, but expressed concerns about security lights, flooding, restroom availability, and ability to exit the trail after entry. Mr. Andy Chica from TEDSI and Public Works Director Tom Warner explained that these are the kinds of concerns that will be addressed and considered in development of the engineering design and schematics. Mr. Warner stated that 80% of the costs ($397,000 for engineering and $2.7 million for construction cost) will be reimbursed through the ISTEA program. 13. Consider approving a contract for the installation of a standby emergency generator for the Water Treatment Plant and for the construction of a building for its enclosure Councilmember Smith moved to approve Resolution No. 98-197 authorizing a contract with Placo, Inc. in the amount of $487,000 for installing a 1,200 kilowatt generator and constructing a 20' x 27' metal building at the Water Treatment Plant on Pine Street. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis Noes: None 14. Consider authorizing execution of a financing agreement for the purchase of a fire pumper Councilmember Cokinos moved to approve Resolution No. 98-198 authorizing a financing agreement with Municipal Services Group of Littleton, Colorado in the amount of 59 basis points below the yield of the 5 3/4% Coupon Treasury Note maturing August 2003, as published in the Wall Street Journal. Councilmember Smith seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis Noes: None 15. Consider authorizing execution of a financing agreement for the purchase of three jet rodder trucks Minutes;8/11196;Page 9 Councilmember Cokinos moved to approve Resolution No. 98-199 authorizing a financing agreement with Municipal Services Group of Littleton, Colorado in the amount of 54 basis points below the yield of the 6% Coupon Treasury Note maturing July, 2002, as published in the Wall Street Journal. Councilmember Goodson seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis Noes: None 16. Consider approving a contract with Statewide Consolidated Community Development Corporation (SCCDC) relating to the 1997 CDBG Grant Program Councilmember Davis moved to approve Resolution No. 98-200 authorizing a contract with Statewide Consolidated Community Development Corporation to provide $30,000 from the 1997 CDBG Grant Program for project related soft costs for the development of thirty houses. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis, Noes: None Abstention: Mayor Moore Councilmember Davis stated that he is interested in continuance of the scattered site home program in the northend of Beaumont and in the area north of College Street after completion of the Charlton Pollard Neighborhood Revitalization efforts. 17. Consider approving a contract with Southeast Texas Community Development Corporation (SETCDC) relating to the 1997 HOME Grant Program Councilmember Davis moved to approve Resolution No. 98-201 authorizing a contract to provide Southeast Texas Community Development Corporation with $90,000 from the 1997 HOME Grant Program for Homebuyer's Assistance for the sale of six houses to female head-of-households in Beaumont. Councilmember Ames seconded the motion. MOTION PASSED. Ayes: Mayor Moore, Mayor Pro Tem Patterson, Councilmembers Smith, Goodson, Cokinos, and Davis Noes: None Minutes;8/11/98;Page 10 Councilmember Davis referred to a newspaper article about Texas housing and questioned CHDO's and City's applying for grant funding. The City Manager explained conditions under which the City could apply directly for funding or through a qualified CHDO. Councilmember Davis requested that a member of City staff be designated to keep abreast of funding available for CHDO's and distribute that information to them in order to meet application deadlines and guidelines. WORK SESSION * Review proposed FY 1999 Operating Budget The City Manager presented portions of the proposed budget for FY 99. Mr. Riley said the all funds summary shows proposed expenditures of $127,594,000 divided into four categories. Today, the emphasis of the overview will primarily be the governmental funds with a proposed expenditure of$74,466,000. He said the second category is the Enterprise Fund which are the Water Utilities Fund and Solid Waste Management Fund for a total of $26,469,000; the Special Revenue Funds total $9,531,00, and the Internal Service Funds totals $17,128,000. Mr. Riley explained there are changes regarding requirements for adopting a tax rate and reviewed and highlighted information in the General Fund, Debt Service Fund, General Liability Fund and Employee Benefits Fund as shown in Exhibit "A." Mr. Riley discussed increases in employee dependent health care, necessary fund transfers, franchise payments, increased debt service and the need for consideration of a $.025 tax increase with calculation projections as shown in Exhibit"B," and stated that there has not been tax increase in six years. Council discussion included employee costs, maintenance of the liability fund, bond ratings, capital improvements enticing economic benefits, and industrial payments. Councilmember Davis expressly stated that some past predictions regarding a tax increase did not happen, reviewed portions of the budgets for the last five years, and said we are in better shape today because of not raising taxes in 1995. Councilmember Davis said there are negative consequences for raising taxes when they are not absolutely necessary. He expressed concern with the level of spending and the level of revenue. Councilmember Davis said he is not convinced a tax increase is impending, added that keeping property taxes low is an attraction, and expressed concerns with amounts of some expenditures and questioned if they are being curtailed as much as possible. Councilmember Davis requested a year by year report of actual amounts of revenue received from sales and use tax, property tax, industrial payments, gross receipts taxes, utility fund in-lieu and other, from 1993 to estimated amounts for 1998 and 1999, before considering a tax increase. He also requested an actual report of funds spent for capital improvements and how HUD funds in Minutes;8/11/98;Page 11 the bricks and mortar stage were used for the past five years. Councilmember Davis complimented the City Manager in presenting the needs of the city, said he will focus on efficiency and addressed increases he thinks can be trimmed, particularly wage increases in certain departments and the number of professional employees. He also said he would like to see calculations of what a fund balance under $3 million would do to bond ratings. Councilmember Davis spoke about money spent for engineering services for projects that never materialized, and said he wants to make sure the project takes place when engineering services are voted upon. Finance Officer Beverly Hodges informed Council of changes in the Property Tax Code relating to public hearings required for increases in tax revenue and the budget document and other calendar planning dates for FY 1999 as shown in Exhibit "C." She explained the necessity of a record vote and its publication and setting a public hearing. COMMENTS " Councilmembers comment on various matters Councilmember Smith reported that Council enjoyed a victorious benefit basketball game with members of the Beaumont Housing Authority. Councilmember Smith said this was a fun evening that she enjoyed on the sidelines as the coach and said the five others did an excellent job and brought home the trophy! Councilmember Smith said she will bring the trophy to Council next week for everyone to see. Councilmember Goodson said he was sorry to be out of town and unable to play in the basketball game. He asked Mayor Pro Tem Patterson to get with staff to look at information included in Council's packet regarding a new County program about disabled parking. Councilmember Goodson spoke about a funding request from citizen advocates for film related costs incurred with filming violations of parking in handicapped parking spaces. Councilmember Cokinos spoke about comments from citizens published in the Journal this past week being similar to what Council is aware of that relate to getting trash off streets, extended bus service and more firefighters. Also, Councilmember Cokinos congratulated firefighters for their successful efforts in the overhead rescue of a worker who fell inside one of the water tanks. Councilmember Davis congratulated Mayor Moore for being the team leader in the recent benefit basketball game, and said this is just an example of how well Council works together and the good camaraderie they share. Minutes;8/11198;Page 12 Mayor Pro Tem Patterson announced that the Pear Orchard Neighborhood Association will hold a meeting on Thursday, August 13th, at 7:00 p.m. at Our Mother of Mercy Catholic Church hall. Mayor Moore recounted that Council has been very busy these past two weeks. Two weeks ago an all-day retreat was held to discuss a number of issues and goals for the future in addition to greeting the baseball tournament visitors. Mayor Moore said he visited the two newest schools, and said it was heartwarming to see such positive reactions to getting the schools ready. He commented about the amount of new home construction and interest in neighborhood rehabilitation. Mayor Moore said the basketball game with the Beaumont Housing Authority was a benefit to promote child care and was a lot of fun. He complimented his team, said they played a very good game and displayed a medal he received for shooting a three-point basket! Mayor Moore complimented Congressman Lampson for arranging a panel regarding IRS reforms. He said some of the testimonies were heart-wrenching and eye-opening. Mayor Moore commented about the idea of extended bus service continually surfacing, and said he hopes that by the end of the budget cycle, Council will be giving consideration to that item to help provide transportation to the mall and to those trying to take advantage of getting off welfare and in need transportation to jobs. *Public Comment (Persons are limited to 3 minutes) Mr. Greg Shepherd, 780 Stone Circle, spoke about franchise fees and volunteered to give further explanation and projections about Entergy to City staff. Mr. Lynn DeMary, 430 East Elgie, addressed Council to compliment Mayor Pro Tem Patterson with the successful opening of the 11th Street project, thanked the Police and Fire Departments for participation in America's Night Out Against Crime. He said it was a very successful meeting and thanked everyone who attended. Mr. DeMary reminded citizens that school is in session and that new school zones and speed limits are in effect. Mayor Moore added appreciation to the many sponsors of the America's Night Out Against Crime. He said that Domino's Pizza has been there every year providing pizza for the event. Mr. DeMary also said that Lamar Bank and Price and Company provided refreshments for the evening. EXECUTIVE SESSION *Executive Session in accordance with Section 551.071 of the Government Code to discuss contemplated or pending litigation: Minutes;6/11196;Page 13 Claim of Hattie Green Claim of Paul and Helen Davidson Claim of Lloyd Payne Linda Frederick et al v. City of Beaumont "Executive Session in accordance with Section 551.074 of the Government Code to consider the appointment or employment of a public officer or employee: City Clerk There being no further business, the meeting recessed at 3:50 p.m. to reconvene in executive session. Mayor David W. Moore Barbara Liming, Deputy Cit Jerk Minutes;8111/98;Page 14 .Mr7wrandum �To: Mayor and City Councilmembers From: Ray A.Riley, City Manager Date: Friday,August 07, 1998 Subject: FY 99 Preliminary Budget A W- GENERAL FUND Proposed expenditures for all purposes will total $63,280,000 for FY 99 which represents an increase of$2,050,000 or 3.3°1,, over previous FY 98. Personnel • Net increase of $1,075,000 is related directly to expenses for wages and benefits of employees. • 3% increase in base wages allocated for all personnel. • No change in number of authorized positions. Transfers • Transfers made to other funds total $5,280,000 which is $980,000 more than last year. • Increases include $200,000 for facilities repair, $400,000 for general liability, and$380,000 for dependent health care. Budget($000) FY 99 FY 98 Public Safety 30,235 29,326 909 City Services 18,179 17,550 629 General Administrative 9,586 10,052 (466) Transfers 5.280 4.305 975 63,280 61,233 2,047 Revenues are anticipated at $63,050,000 in FY 99. Revenues are projected to exceed expenditures by $500,000 in FY 98, and $280,000 of this balance will be used for the transfers to other funds. EXHIBIT "q" DEBT SERVICE FUND Debt service requirements will increase $1.9M from $9.3M in FY 98 to $11.2M in FY 99. An increase in the tax rate of.025/100 is proposed to allow $900,000 additional property tax revenues for this purposes.The fund balance will provide $535,000 for the remainder of funds needed. The continuing capital improvements program will require the issuance of an estimated $15-$17M of additional debt in 1999 to finance construction of planned projects. This issue may cause an increase of$iM in debt payment and raise the level of debt service to $12.2M in FY 2000. The fund balance will have to provide $1.2M to help pay the debt payment required in year 2000. Debt Service Actual Actual Anticipated Projected ($000) FY 97 FY 98 FY 99 FY 2000 Fund balance 4,938 4,875 4,935 4,400 Add revenues 9,437 9,360 10,650 (1) 10,970 Less expenditures 9.500 9,300 11,185 12,200 (2) Gain/(Reduction) (63) 60 (535) (1,230) (1) Tax rate increase of 0.025/100 produces$900,000. (2) Issue$15M in 1999 will increase debt service requirements$1M in FY 2000. GENERAL LIABILITY FUND The fund balance is expected to be about$1.4M at the end of FY 98. Charges will be made to the General, Water and Solid Waste Management funds to provide $600,000 in revenues to maintain sufficient reserves for the payment of future claims. Based on anticipated annual expenditures of$800,000, the charges to other funds will be required in FY 2000 at the same or maybe an even greater rate to maintain reserves at a satisfactory level. EMPLOYEE BENEFITS FUND Total appropriations of $9,350,000 are up about $325,000 over FY 98. The increase is attributable to rising costs of dependent health care. The General Fund will be charged $380,000 more in FY 99 and increased employee contributions will be required to offset rising costs. Even with the additional revenues, the fund balance will be reduced about $450,000 in FY 99. A balance of $1.1M is the minimum amount which should be maintained as a reserve for the benefit program. page 2 Debt Service Fund Tax Rate Worksheet 1 ($000s) Rate Increase '99100 0.0251-0- 0.020 1.01 0.0151.02 Balance 10-1-98 $ 4,935 $ 4,935 $ 4,935 A Estimated revenues 9,750 9,750 9,750 Proposed increase 900 720 540 10,650 10,470 10,290 B Debt Service _ 11,185 _ 11,185 _ 11,185 Reduce Balance (535) (715) (895) 2 Balance 10-1-99 4,400 4,220 4,040 A Estimated Revenues 10,863 10,679 10,496 Proposed Increase _ _0_ --- 360 __ 720 10,863 11,039 11,216 B Debt Service -.--...12,200 _ 12,200_ 12,200 Reduce Balance (1 ,337) (1,161) (984) 3 Balance 10-1-00 3,063 3,059 3,056 Tax Rate .641100 .6451100 .651100 EXHIBIT "B" Debt Service Fund Tax Rate Worksheet 2 ($000s) Rate Increase 0.0251100 0.0201100 0.0151100 Balance 10-1-98 $ 4,935 $ 4,935 $ 4,935 A Estimated revenues 9,750 9,750 9,750 Proposed increase 900 720 540 10,650 10,470 10,290 B Debt Service _ 11,185 _11,185 ----11 ,185 Reduce Balance (535) (715) (895) 2 Balance 10-1-99 4,400 4,220 4,040 A Estimated Revenues 10,863 10,679 10,496 B Debt Service _12,200_ _ 12,200_ _12,200 Reduce Balance (1 ,337) (1,521) (1,704) 3 Balance 10-1-00 3,063 2,699 2,336 Tax Rate .641100 .6351100 .631100 City of I3vaumont Cry of Beaumont 801 Box 8t! Room:130 Fax (- 9)880-80-3789 1'() [inX 38'.,'-i Fax 0409)880-3139 fi,aumont.T\ 7770.1 MamrWidm To: Mayor and City Councilmembers / . From: Beverly 13. Hodges, finance Office cc: Ray A. Riley, City Manager Date: Friday, August 07, 1998 Subject: 1999 Budget Process Chapter 26 of the Property Tax Code requires taxing units to comply with truth-in-taxation laws in adopting their tax rates. Beginning with tax year 1998 (FY1999). Senate Bill 841, changed when a taxing unit's governing body must hold a public hearing and publish public notices for a tax increase. Previously, a 3-percent allowance above the effective tax rate was permitted, this allowance has been deleted. Effective January 1, 1998, taxing units are required to hold a public hearing to impose an amount of property taxes that exceed the preceding year's property taxes. In other words, the City must now publish a notice and hold a public hearing based on an increase in revenue versus an increase in the tax rate. For a taxing body an increase in the assessed valuation of taxable property will initiate this process. It is projected for the FY99 Budget that the increase in assessed valuation will effect an increase in property tax revenues equal to $934,155 or 4.33%. When the proposed tax rate increase is factored into the equation the increase in property tax revenues is equal to $1,849,295 or 8.57%. The increase in property tax revenue is reflected in the proposed FY99 Budget. Included in the preliminary budget is the effect of the proposed increase in the tax rate on Industrial District Payments. The existing industrial district contracts include a clause which provides for an increase in the property tax rate.That clause factors the adopted tax rate into the payment calculation and is estimated to bring in an additional$370,000 in revenues into the General Fund for FY99. Prior to calling for the public hearing on the tax rate the public body must take a record vote on the proposal. The vote must be published in the "Notice of Public Hearing on Tax Increase." At the meeting when the public hearing is held the taxing body must schedule the date of the vote to adopt the tax rate. The adoption of the tax rate must occur between 3-14 days after the public hearing or another public hearing must be held. For the City of Beaumont the charter requires the adoption of the budget prior to the adoption of the tax rate. Attached for your information is a proposed schedule of events -"Tax and Budget Planning Calendar for Fiscal Year 1999" and the "Worksheet for Calculation of Percentage Tax Increase." EXHIBIT 99C" Tax and Budget Planning Calendar for Fiscal Year 1999 Aug 7 72-hours notice for meeting (Open Meetings Notice). Aug 11 _ Meeting of governing body to receive budget and set public hearing date for budget and Capital Program. Discuss changes to Chapter 26 of the Property Tax Code related to truth-in-taxation. Aug 14 72-hours notice for meeting (Open Meetings Notice). Aug 18 Meeting of governing body to discuss tax rate; if proposed tax rate will raise more revenue than the preceding year's revenue, take a record vote and schedule public hearing on tax increase. between Aug 19-24 "Notice of Public Hearing on Tax Increase" (1st quarter-page tax notice) published at least seven days before public hearing. Notice states the percent by which proposed tax revenue exceeds prior year tax revenue. (a) "Notice of Public Hearing on Budget and Capital Program" published at least seven days before public hearing. Aug 28 72-hours notice for public hearing (Open Meetings Notice). Sept 1 Public hearing on tax rate; schedule and announce meeting to adopt tax rate 3 - 14 days from this date. Public hearing on Budget and Capital Program. between Sept 2-5 "Notice of Vote on Tax Rate" (2nd quarter-page tax notice) published before meeting to adopt tax rate. Sept 4 72-hours notice for meeting at which governing body will adopt tax rate, Budget and Capital Program. Sept 8 Meeting to adopt Budget and Capital Program. Meeting to adopt tax rate. Meeting is 3 to 14 days after public hearing and by September 1, or as soon after as practicable. Sept 15 Tax code requires adoption of tax rate no later than 14 days after public hearing. The budget must be adopted before the tax rate. Sept 27 Charter requires that the Budget and the Capital Program be adopted on or before the 27th day of the last month of the fiscal year. (a) Previously it was the percent increase in the rate. Worksheet for Calculation of Percentage Tax Increase 1998 Tax Year/Fiscal Year 1999 "Zero Base" Current Proposed _ Rate Rate Rate 1. 1997 adjusted taxable value. 3,498,572,800 3,498,572,800 3,498,572,800 Enter line 3 of the Effective Tax Rate Worksheet. 2. 1997 total tax rate. 0.6150 0.6150 0.6150 Enter line 4 of the Effective Tax Rate Worksheet. 3. Taxes refunded for years preceding tax year 1997. 62,085 62,085 62,085 Enter line 13 of the Effective Tax Rate Worksheet. 4. Last year's levy. 21,578,308 21,578,308 21,578,308 Multiply line 1 times line 2 and divide by 100. To the result, add line 3. 5. 1998 total taxable value. Enter Line 18 of 3,660,562,963 3,660,562,963 3,660,562,963 the Effective Tax Rate Worksheet. 6. Proposed 1998 tax rate. 0.5895 0.6150 0.6400 7. Proposed 1998 taxes. 21,578,307 22,512,462 23,427,603 Multiply line 5 times line 6 and divide by 100. 8. Proposed amount of tax revenue increase. 0 934,155 1,849,295 Subtract line 4 from line 7. 9. Proposed percentage tax revenue increase. 0.0000% 4.3291% 8.5702% Divide line 8 by line 4 and multiply by 100.