HomeMy WebLinkAboutPACKET SEPT 07 2010 SICK WITH OPPORTUNITY
BEA,UMON*
T - E - % - A - S
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS SEPTEMBER 7,2010 1:30 P.M.
CONSENT AGENDA
* Approval of minutes -August 31, 2010
* Confirmation of committee appointments
A) Authorize the City Manager to apply for and receive funding through the Department of
Homeland Security's Buffer Zone Protection Plan Program
B) Authorize the City Manager to apply for and accept grant funding through the Mamie
McFaddin-Ward Heritage Foundation
C) Authorize the Beaumont Convention&Visitors Bureau to apply for grant funds from the
Jefferson County Tourism Commission for half the cost of an outdoor billboard
D) Authorize a contract for administration of the City's Medical and Dependent Care
Flexible Spending Accounts
A
RICH WITH OPPORTUNITY
IIEA,UMON*
T • E • X • A • S Cit Council A enda It em
Y g
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Laura Clark, Chief Financial Officer
MEETING DATE: September 7, 2010
REQUESTED ACTION: Council consider authorizing the City Manager to apply for
and receive funding in the amount of$190,000 through the
Department of Homeland Security's Buffer Zone Protection
Plan Program(BZPP).
RECOMMENDATION
Administration recommends approval.
BACKGROUND
The Department of Homeland Security requested assistance from local law enforcement to provide
an update to the buffer zone protection plan for ExxonMobil. The program is intended to enhance
facility security in order to protect neighboring communities. This refinery has been designated as
critical to national infrastructure and federal manpower is insufficient to cover all the sites in the
time required. It also alerts local responders to potential hazards from the facility. In return for the
assessment, the BZPP will provide up to $190,000 worth of law enforcement equipment to the
assigned agency. The police department will utilize approximately$109,000 to upgrade the phone
system at Police Headquarters, and then will use the remaining $81,000 to replace approximately
twenty mobile computer terminals that have already exceeded life expectancy.
BUDGETARY IMPACT
The City would receive grant funding in a total amount of$190,000 for law enforcement equipment
with no required matching funds.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to apply for and receive funding
in an amount up to $190,000 through the Department of Homeland Security Buffer Zone
Protection Plan Program to be used to upgrade the phone system at Police Headquarters
and replace approximately twenty (20) mobile computer terminals.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 7th day of
September, 2010.
- Mayor Becky Ames -
B
RICH WITH OPPORTUNITT
[IEA,UMON*
T • E x • A • S Ci Council A enda Item
tY g
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Claudie D. Hawkins
MEETING DATE: September 7, 2010
REQUESTED ACTION: Council consider authorizing City Manager to apply for and
accept grant funding through the Mamie McFaddin-Ward
Heritage Foundation.
RECOMMENDATION
Administration recommends authorizing the City Manager to submit applications and to accept
grant funds through the Mamie McFaddin-Ward Heritage Foundation.
BACKGROUND
The Foundation's primary purpose is to support the McFaddin-Ward House Museum, located in
Beaumont, Texas. The Foundation may also make grants to non-profit organizations in the local
community typically within the following areas: (1) arts, culture, and humanities, (2)historic
preservation(3) education, (4)health and(5) services for the needy and disadvantaged. There
are no formal restrictions as to the type of requests being considered, whether programming,
project or capital improvement in nature. Grant request is being made in the amount of
$25,452.40.
If approved,the grant will be used for rehabilitation of The Maurine Gray Literacy Depot and the
upgrades will result in the highest degree of energy efficiency possible for the structure. A grant
has been received from the H. E. &Kate Dishman Charitable Foundations Trust in the amount of
$21,000.00 and the additional grant will complete the necessary rehabilitation needed for the
Maurine Gray Literacy Depot.
BUDGETARYIMPACT
The grant does not require any matching funds from the City of Beaumont.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to apply for and receive grant
funding n an amount u to $25 452.40 through the Mamie McFaddin-Ward Heritage
9 p 9 9
Foundation to be used for rehabilitation of The Maurine Gray Literacy Depot.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 7th day of
September, 2010.
- Mayor Becky Ames -
C
RICH WITH OPPORTUNITY
BEAUMON-*
T • $ • X • A 0 8 City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager n
PREPARED BY: Dean Comwell, Executive Director l0eel
Beaumont Convention&Visitors Bureau
MEETING DATE: September 7, 2010
REQUESTED ACTION: Consider authorizing the Beaumont Convention& Visitors
Bureau to apply for grant monies from the Jefferson County
Tourism Commission for half the cost of an outdoor
billboard.
RECOMMENDATION
Administration recommends approval for the Beaumont Convention&Visitors Bureau to apply for
grant monies from the Jefferson County Tourism Commission through the Jefferson County Hotel
Occupancy tax in the amount of$9,500 to be used for half the cost of an outdoor billboard which
totals$19,200.
BACKGROUND
The Beaumont Convention&Visitors Bureau has partnered with Jefferson County on several
tourism related projects in an effort to generate more leisure business to the area. The Beaumont
Convention&Visitors Bureau has a one-year advertising contract with Sign Ad Outdoor company
for a billboard located in Baytown, TX along Interstate 10. The billboard encourages travelers to
stop at the Ben J. Rogers Regional Visitors Center, giving the staff an opportunity to recommend
restaurants, hotels and attractions to the visitors that may entice them to stay awhile. Research
shows in a 24-hour period, 50,000 cars pass the location of the billboard headed east. With the
assistance of the Jefferson County funds, the billboard will be used to attract those traveling
through our area, in an effort to increase the city's economy.
BUDGETARY IMPACT
None.
Revised 12-08
APPLICATION FOR USE OF JEFFERSON COUNTY
HOTEL OCCUPANCY TAX FUNDS
(FOR ADVERTISING AND PROMOTION FUNDING)
Thank you for your interest in promoting tourism and the hotel industry in Jefferson
County through the utilization of county Hotel Occupancy Tax(HOT) funds. The use is
HOT funds is regulated by law(Tax code 352-1033),which limits the use of those funds
for the direct enhancement and promotion of tourism AND the convention and hotel
industry. To determine eligibility,the following section of this tax code which
pertains to advertising/promotion must apply to your application. "Advertise and
conduct solicitations and promotional programs to attract tourists and conventions
delegates or registrants to the county or its vicinity,any of which may be conducted
by the county or through contracts with persons or organizations selected by the
county. In addition, a county that borders the Gulf of Mexico and that is authorized to
impose the tax by Section 352.002(a)(6)may use 50%or less of the revenue from the tax
for the promotion of tourism.
I. CRITERIA
A. General Information
1. Name of Organization City of Beaumont - Convention & visitors Bureau
2. What specifically is being marketed or promoted? I.e. facility, event, etc.
Ben J Rogers Regional Visitors Center
3. Total Amount of Funds Requested by this Grant? $9,600
4. Date of Event if applicable. Please ensure that you are requesting funds
far enough in advance to be able to accomplish the goals for which you
are requesting funds.
1 year contract: 1/1/2011 through 12/31/2011
5. Which hotel/s have you negotiated a special rate if this funding request is
being used for an event? Please list hotel/s (do not list rates).
n/a - The purpose of these funds are to drive visitors to
the Visitors Center.
1
Revised 12-08
II.VISITOR IMPACT
A. Provide numbers for the following:
1. Total visitors/participant: previous year 38840
expected this year 40000
2. Visitors/participants who indicated they stayed or will stay in a Jefferson
County hotel:
previous year 720
expected this year 1 o o o
III.FUNDING RECAP
1. Total advertising/promotion budget: $15 o,o o o
a. What is your organization's direct contribution to the above?
$9,600
b. What other sources of funding are being applied to for the
advertising/promotion of your organization?
None.
2. Provide a specific line item accounting description of exact use of
funds being requested. Total should match amount being requested.
(If more space is needed,please use attachments.)
Amount Line Item
$9,600 1/2 the cost of annual billboard contract
I
$9,600 TOTAL
2
Revised 12-08
IV.MARKETING PLANS
A. How will your organization enhance the promotion of tourism AND the convention
/hotel industry in Jefferson County?
By tapping into the drive traffic on I-10 traveling eastbound,
and providing the timely message to stop into the Ben J Rogers
Visitors Center, we hope to capture a portion of leisure and
group traffic and increase awareness of Jefferson Country tourism assets.
B. What media will be used in your advertising and promotion? Please provide a
detailed list of the media to be used, i.e. Houston Chronicle, KHOU, Southern
Living, etc.
Billboard - directing travelers on I-10 to stop at the Ben J Rogers
Regional Visitors Center.
By signing this application,I, individually and on behalf of my organization,represent
and agree that:
1. I have full authority to execute this application on behalf of myself, group,
and organization;
2. Any funds allocated out of Hotel Occupancy Tax monies will be used solely
in the manner set forth in the award letter;
3. I and my organization will,within 60 days following the date of my/our
project/event,provide a complete and detailed accounting to the Jefferson
County Tourism Commission, c/o Kathi Hughes, in such form as may be
provided/requested;
4. Failure to provide the report within 60 days and/or to use the allocated monies
solely for the purposes for which such funds were awarded shall render me
and my group/organization liable for reimbursement to Jefferson County of all
such funds,plus reasonable court costs and attorney fees.
Date 8/26/2010
Name of Person Completing Form Dean Conwell
Signature
Title Executive Director
Phone Number 409-880-3749
Federal Tax ID 74-6000278
Address 505 Willow street Beaumont, TX 77701
E-mail dconwell®ci.beaumont.tx.us
3
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to apply for and receive funds in
an amount up to $9,600 from the Jefferson County Tourism Commission through the
Jefferson County Hotel Occupancy Tax to be used by the Beaumont Convention and
Visitors Bureau for half the cost of an outdoor billboard.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 7th day of
September, 2010.
- Mayor Becky Ames -
D
RICH WITH OPPORTUNITY
,
T E . % A 3 � g City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Laura Clark, Chief Financial Officer`P
MEETING DATE: September 7, 2010
REQUESTED ACTION: Council consider authorizing a contract for Flexible
Spending Account(FSA) administration.
RECOMMENDATION
The Administration recommends Council authorize the City Manager to enter into a five(5)year
agreement with Discovery Benefits, effective January 1, 2011, for administration of the City's
Medical and Dependent Care Flexible Spending Accounts (FSAs).
BACKGROUND
The City currently has 168 employees who take advantage of Flexible Spending Accounts (FSA).
This is a tax-advantaged financial account into which employees can automatically set aside a
portion of their pretax wages. The money then can be used by the employee to pay for qualified
medical or dependent care expenses. Flexible spending accounts offer tax advantages to
employees and the City. Employees do not pay federal income taxes or Social Security and
Medicare taxes on the salary they contribute to their FSA plan and the City does not pay
matching Social Security and Medicare taxes (7.65%) on those wages. FSAs also allow the City
to offer a low-cost benefit that meets employee needs in critical benefit areas.
FSAs are currently administered in-house. Due to complex IRS regulations and legislative
changes as well as privacy issues, the City will outsource the administration of FSAs. Based on
current participation,the cost to outsource FSA administration to Discovery Benefits will be
$4.50 per participant per month or$9,072 per year.
BUDGETARYIMPACT
Funds are available for these expenditures in the Employee Benefits Fund.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to enter into a five (5) year
agreement with Discovery Benefits, effective January 1, 2011, for administration of the
City's Medical and Dependent Care Flexible Spending Accounts.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 7th day of
September, 2010.
- Mayor Becky Ames -
RICH WITH OPPORTUNITY
IIEAUMON*
T * E * % * A * S
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS SEPTEMBER 7,2010 1:30 P.M.
AGENDA
CALL TO ORDER
* Invocation Pledge Roll Call
* Presentations and Recognition:
* Public Comment: Persons may speak on scheduled agenda items 1-3/Consent
Agenda
* Consent Agenda
GENERAL BUSINESS
1. Consider approving a contract for third party administration of the City's self
funded Dual Option Preferred Provider Organization medical and dental plans
2. Consider approving annual medical insurance premiums for retirees
3. Consider amending the Solid Waste Franchise Agreement with Waste
Management
PUBLIC HEARING
* Receive comments on the 2010(FY 2011)Proposed Tax Rate
COMMENTS
* Councilmembers/City Manager comment on various matters
* Public Comment(Persons are limited to 3 minutes)
EXECUTIVE SESSION
* Consider matters related to contemplated or pending litigation in accordance with
Section 551.071 of the Government Code:
City of Beaumont v. James Mathews
State of Texas v. James Mathews,Jr.
Kevin Roach v. City of Beaumont
Claim of Edwin Michael
In the Matter of Arbitration between Beaumont Firefighters Local 399
(Jimmy Landrum)and the City of Beaumont,Texas
Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or
services are requested to contact Mitchell Normand at 880-3777 three days prior to the meeting.
1
September 7,2010
Consider approving a contract for third party administration of the City's self funded Dual
Option Preferred Provider Organization medical and dental plans
RICH WITH OPPORTUNITY
BEA,IIMON*
T - E e X • A . S City g Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Laura Clark, Chief Financial Officer
MEETING DATE: September 7; 2010
REQUESTED ACTION: Council consider authorizing a contract for third party
administration of the City's self funded Dual Option Preferred
Provider Organization medical and dental plans.
RECOMMENDATION
The Administration recommends that Council award to Blue Cross Blue Shield of Texas
(BCBSTX) a three (3)year agreement with an option for two additional years effective January 1,
2011 for third party administration of the City's self funded Dual Option Preferred Provider
Organization(PPO)medical plan and a self funded dental plan.
BACKGROUND
The City offers medical and dental benefits to 1274 full time employees and medical benefits
to 187 retirees. As medical costs continue to rise,the City faces a challenge in providing the same
level of medical benefits as in previous years. The City currently offers a fully funded HMO and a
self funded PPO plan. In March 2010, City staff began working with the City's health benefit
consultant, Holmes Murphy&Associates,to request bid proposals for the City's medical and
dental plans for 2011. Four(4) medical and nine (9) dental proposals were received and City
staff along with Holmes Murphy interviewed the top three (3) finalists which were Blue Cross
Blue Shield of Texas,Aetna, and United Health Care (UHC).
After analyzing and negotiating with the finalists, City staff and Holmes Murphy concluded that
BCBSTX,the incumbent carrier, offered the most cost effective plans with an extensive provider
network and deep provider discounts. Initial renewal rates projected by BCBSTX for the fully
insured HMO plan increased 21%. Final negotiated rates by Holmes Murphy&Associates
resulted in the HMO plan's cost increasing 19%. Due to the HMO's high cost,Holmes Murphy
recommends replacing the HMO plan with a self funded Dual Option PPO plan that will provide
a choice of cost effective plans for employees/retirees. BCBSTX's projected increase for PPO
claims administration is 3.7% and claims cost are projected to increase 7.1%. The claims
increase is a function of increasing claims utilization, rising trend factors and increasing provider
payments.
Contract with Blue Cross Blue Shield of Texas
September 7, 2010
Page 2
The Dual Option PPO plan consists of the following two plans:
PLAN DESIGN PREMIUM PPO PLAN BASIC PPO PLAN
Coinsurance 90% 80%
Deductible $250 $500
Out of Pocket Maximum $1500 $1500
Primary Care Office Visit $20 $25
Specialist Office Visit $30 $35
Outpatient Surgery Copay 1 $0 r$0
The monthly dental administration rate of$5.66 per covered employee,regardless the level of
coverage, did not change from the prior contract.Monthly PPO administration rates for the Dual
Option PPO plan increased from $42.91 per covered employee to $44.50, regardless the level of
coverage, effective January 1, 2011.
BUDGETARY IMPACT
Funds are available for these expenditures in the Employee Benefits Fund.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to enter into a three-year
agreement, with an option to extend for two additional years, with Blue Cross Blue Shield
of Texas (BCBSTX) for third party administration of the City's self-funded Dual Option
Preferred Provider Organization (PPO) medical plan and self-funded dental plan effective
January 1, 2011.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 7th day of
September, 2010.
- Mayor Becky Ames -
2
September 7,2010
Consider approving annual medical insurance premiums for retirees
RICH WITH OPPORTUNITY
1
T • E • X • A • s City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Laura Clark, Chief Financial Officer
MEETING DATE: September 7, 2010
REQUESTED ACTION: Council consider approving annual medical insurance
premiums for retirees.
RECOMMENDATION
Administration recommends approval of medical contribution rates for retirees including their
dependents, effective January 1, 2011.
BACKGROUND
Retirees and their dependents are allowed to elect continuation of medical coverage as provided
by state statue. The retiree/dependent may continue coverage until the retiree/dependent is
covered by Medicare/Medicaid but not beyond age 65. Currently, there are 187 retirees on the
City's medical plan.
The retiree contribution rate for Police and Fire retirees is based on a provision in the Police and
Fire contract agreements which states, "Any employee who retired on or after February 1, 1992
may be subject to an annual increase in contribution. The increase will be effected in accordance
with the labor agreement. The single rate will be established at 69%; single rate+ 1 at 58%; and
the family rate at 54% of the COBRA rate on January 1'annually." This same formula is utilized
when calculating the contribution rate for civilian retirees.
The City requested Holmes Murphy&Associates, our benefits consultant to analyze the City's
health costs to determine the 2011 medical COBRA rates. Based on their recommendation,
retiree medical rates effective January 1, 2011 will be as follows:
Retiree Medical Insurance Premium
September 7, 2010
Page 2
Plan 2011 2011 2011 2011 2010
and Category Medical Prescription Total Retiree Retiree
Rate Drug Rate COBRA Rate Rate
Rate*
BASIC PPO (EO) $332.63 $67.03 $399.66 $275.77 $256.59
(El) $823.38 $165.94 $989.32 $573.81 $533.86
(E2) $1081.32 $217.95 $1299.27 $701.61 $652.82
PREMIUM PPO (EO) $379.00 $67.03 $446.03 $307.76 $286.36
(El) $908.98 $165.94 $1074.92 $623.45 $580.10
(E2) $1311.89 $217.95 $1529.84 $826.11 $768.68
*Rate does not include COBRA administration fee.
BUDGETARYIMPACT
Funds are available for these expenditures in the Employee Benefits Fund.
RESOLUTION NO.
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to implement the following annual
medical contribution rates for retirees including their dependents effective January 1,2011:
Plan 2011 2011 2011 2011 2010
and Category Medical Prescription COBRA Retiree Retiree
Rate Drug Rate Total Rate Rate
Rate*
BASIC PPO (EO) $332.63 $67.03 $399.66 $275.77 $256.59
(E1) $823.38 $165.94 $989.32 $573.81 $533.86
(E2) $1081.32 $217.95 $1299.27 $701.61 $652.82
PREMIUM PPO (EO) $379.00 $67.03 $446.03 $307.76 $286.36
(E1) $908.98 $165.94 $1074.92 $623.45 $580.10
(E2) $1311.89 1 $217.95 1 $1529.84 1 $826.11 $768.68
*Rate does not include COBRA administration fee.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 7th day of
September, 2010.
- Mayor Becky Ames -
3
September 7,2010
Consider amending the Solid Waste Franchise Agreement with Waste Management
II
SICK WITH OPPORTUNITY
BEAUUn
M I UK*T • It • X • A * S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Chris Boone,Director of Community Development
MEETING DATE: September 7, 2010
REQUESTED ACTION: City Council consider an ordinance amending the Solid
Waste Franchise Agreement with Waste Management.
RECONMIENDATION:
Administration recommends City Council consider an ordinance amending the Solid Waste
Franchise Agreement with Waste Management in regards to franchise flees associated with the
collection of residential recyclable materials.
BACKGROUND
In May 2009, the Mayor and City Council established a Recycling Committee to review the
various recycling options that are available and to make a recommendation on which option
would best fit the needs of the City. The first Committee meeting was held in June 2009. After
reviewing the possible options, the Committee is recommending the issuance of a permit that
would allow a company to pick up recyclable materials within the City on a subscription basis.
Under this option the City would not be directly involved in the collection or billing process. The
residents of Beaumont would be provided an opportunity to subscribe for recycling services
directly with the company. The company would then develop routes and a collection schedule
based on the number and density of subscriptions.
On August 12, 2010, one permit application was received, from Waste Management, for
providing subscription recycling services. The cost stated by Waste Management in their
application was$10 per month for bi-weekly collection. The materials to be collected at this time
include plastics(1-7),tin cans, aluminum, cardboard, newspaper, cereal and soft drink/water
boxes, paper,junk mail and telephone books. It is anticipated that recycling services will begin on
November 1, 2010.
The current solid waste franchises require a seven(7)percent franchise fee be assessed. This fee is
based on the revenue generated from the collection of solid waste located within the City. In
order to keep the subscription rate to a minimum, the Recycling Committee is recommending that
the franchise fee for recycled materials only be waived.
BUDGETARY MPACT
Based on$10 per month, at the current franchise fee of seven(7)percent, the estimated
unrealized revenue per 1,000 customers would be$8,400 a year.
ORDINANCE NO.
ENTITLED AN ORDINANCE AMENDING ORDINANCE NO.
91-45, WHICH GRANTED A FRANCHISE TO WASTE
MANAGEMENT-GOLDEN TRIANGLE TO OPERATE A SOLID
WASTE COLLECTION AND TRANSPORTATION SERVICE
IN THE CITY OF BEAUMONT, TO WAIVE THE SEVEN
PERCENT (7%) FRANCHISE FEE ON COLLECTION OF
RECYCLED MATERIALS ONLY.
WHEREAS, Ordinance No. 91-45, passed on final reading on May 28, 1991,
granted a franchise to Waste Management-Golden Triangle to operate a solid waste
collection and transportation service in the City of Beaumont; and
WHEREAS, a Recycling Committee established in 2009 by the Mayor and City
Council has recommended the issuance of a permit that would allow a company to pick up
recyclable materials within the City of Beaumont on a subscription basis and waiver of the
seven percent (7%)franchise fee on the collection of recycled materials only in order to
keep subscription rates at a minimum; and
WHEREAS, on August 12, 2010, Waste Management submitted a permit
application for the collection of recyclable materials within the City of Beaumont on a
subscription basis;
NOW, THEREFORE, BE IT ORDAINED, BY THE
CITY COUNCIL OF THE CITY OF BEAUMONT:
THAT the statements and findings set out in the preamble to this ordinance are
hereby, in all things, approved and adopted.
BE IT FURTHER ORDAINED THAT Ordinance No. 91-45, which granted a
franchise to Waste Management-Golden Triangle to operate a solid waste collection and
transportation service, be and it is hereby amended to waive the seven percent (7%)
franchise fee on the collection of recycled materials only. The seven percent(7%)of the
gross revenues received for all other services previously established as the franchise fee
will continue in effect.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 7th day of
September, 2010.
- Mayor Becky Ames -
PUBLIC HEARING
* Receive comments on the 2010 (FY 2011)
Proposed Tax Rate
RICH WITH OPPORTUNITY
BEAIIMON*
T - E - X - A - S City Council Agenda Item
TO: City Council
FROM: Kyle Hayes, City Manager
PREPARED BY: Laura H. Clark, Chief Financial Officer
MEETING DATE: September 7, 2010
REQUESTED ACTION: Council to hold a second public hearing on the proposed 2010
(FY 2011) Proposed Tax Rate.
RECOMMENDATION
Administration recommends that Council hold a second public hearing, as scheduled,on the 2010
(FY 2011)Proposed Tax Rate of$0.6400. In accordance with the Property Tax Code,the Council
must make the following announcement: The meeting to vote on the tax rate will be held on
September 21,2010 at 1:30 p.m. in the Council Chambers.
BACKGROUND
Chapter 26 of the Property Tax Code requires taxing units to comply with truth-in-taxation laws in
adopting their tax rate. Two public hearings are required if the proposed tax rate exceeds the lower
of the effective tax rate or the roll back tax rate. A Notice of Public Hearing on Tax Increase is
required to be published in the newspaper, on the city website, and on a television channel, if
available. The notice was published in the newspaper,on the website and on the cable channel 4 on
August 24,2010,regarding the proposal to increase total tax revenue from properties on the tax roll
by 2.68%. Although the proposed tax rate is remaining the same, the increase is related to new
property added to the tax roll this year and a slight increase in appraised values.
BUDGETARYIMPACT
Applying the proposed tax rate of $.6400 and a 97% collection rate, budgeted revenues of
$29,017,000 and $13,249,000 respectively to the General and Debt Service Funds are anticipated.
The total rate of$0.6400 is apportioned$0.439385/$100 assessed valuation to the General Fund and
$0.200615/$100 assessed valuation toward the Debt Service Fund.