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Home My WebLink About08/17/2010 - Special Minutes City Council Mayor Councilmembers Nancy Berry CITY OF COIJ IiGE STATION Home of Texas A&M University' Jess Fields Mayor Pro Tem Dennis Maloney John Crompton Katy-Marie Lyles City Manager Dave Ruesink Glenn Brown Minutes City Council Special Budget Meeting Tuesday, August 17, 2010 at 3:00 p.m. City Hall Council Chambers, 1101 Texas Avenue College Station, Texas 1. Call to order. Mayor Berry called the meeting to order at 3:05 p.m. and introduced the new City Secretary, Sherry Mashburn 2. Presentation, possible action and discussion on the FY 2010-2011 Proposed Budget. MOTION: Upon a motion made by Councilmember Crompton and a second by Councilmember Lyles, the City Council voted one (1) for and five (5) opposed, with Mayor Berry, Council members Fields, Lyles, Maloney and Ruesink voting against, to add $700,000 to the Public Works budget to address street rehabilitation. The motion failed. MOTION: upon a motion made by Councilmember Fields and a second by Councilmember Lyles, the City Council voted one (1) for and five (5) opposed, with Mayor Berry, Council members Crompton, Lyles, Maloney and Ruesink voting against, to amend the motion to move $700,000 from the Public Works fund or find other areas within the General Funds to forestall an effective tax rate increase. The motion failed. As a result, the Transportation User Fee will remain on the ballot. General Fund Financial Forecast ■ Revenues - Economic conditions result in lower revenue estimates - Sales tax estimates lower - Property Tax Rate increases included - Permit revenues lower - Investment earnings lower NOW .r Page 12 City Council Minutes Tuesday, August 17, 2010 ■ Expenditures - Limited new expenditures - Limited pay plan - Increased health care and retirement costs - Includes Police continuation of Strategic Plan - Includes O&M for Fire Station #6 - Possible savings of $150,000 for delayed hires - No other new programs included Property Tax Increases - FYI I - 0.008143 - FY12-0.03 - FY13 - 0.01 - FY14 - 0.0045 Key General Fund Policy Decision Points ■ Police and Fire additional resources ■ Funded through Effective Tax Rate proposal and shift from Debt to O&M ■ Budget and Service Level reductions Proposed General Debt Service Fund ■ FY 10 Debt Service Rate 22.9433 cents ■ FY 11 Debt Service Rate 22.0194 cents - Satisfies FY 11 debt service requirement of $12,581,958. ■ Parking Garage debt funded from parking revenues. ■ Cemetery debt service paid from tax rate ■ Proposed rate of 22.0194 will meet projected debt service requirements. - 2003 and 2008 Bond Authorization - Certificates of Obligation for other projects ■ Technology ■ Facility Improvements ■ Arts Council Building Other Governmental Funds • Economic Development Fund - General Fund transfer - $200,000 • Reduced by $115,000 - Water, Wastewater, Sanitation, Business Park transfers - $295,000 - Cash Assistance expenditures - $655,000 MOTION: Upon a motion made by Councilmember Crompton and a second by Councilmember Fields, the City Council voted three (3) for and three (3) opposed, with Mayor Berry, Council members Lyles, and Ruesink voting against, to strike $50,000 from the RVP Marketing Find. The motion failed. 1%W ..r Page 13 City Council Minutes Tuesday, August 17, 2010 MOTION: Upon a motion made by Councilmember Crompton and a second by Councilmember Fields to reconsideration the motion, the City Council voted six (6) for and none (0) opposed, to strike $50,000 from the RVP Marketing Find. The motion carried unanimously.. Parks Xtra Education Fund - Revenue - $95,159 Expenditures - $95,351 General Government Capital Projects ■ 2008 Bond Authorization $76,950,000 - Streets and Transportation - Parks - Library - Fire Station ■ 7 Year Schedule ■ Operations and Maintenance Hotel Tax Fund ■ Revenues: $3,422,000 ■ Expenditures: $2,063,335 - Special Events & Programs - $357,816 - Convention Center Land Debt Service - $222,519 - Convention & Visitors Bureau - $1,060,000 - Arts Council - $289,000 - George Bush Presidential Library - $50,000 - Veteran's Memorial - $10,000 - Other/Contingency - $74,000 MOTION: Upon a motion made by Councilmember Crompton and a second by Councilmember Maloney, the City Council voted six (6) for and none (0) opposed, to move $200,000 creating a fund within the HOT fund for the attraction of tournaments with parameters: at least 40 teams, 90% from out of town, and see $10.00 return on each dollar spent. The motion carried unanimously. Council consensus was to remove $10,000 from the Veteran's Memorial since there is no program nor has there been a request) MOTION: Upon a motion made by Councilmember Fields and a second by Councilmember Maloney, the City Council voted five (5) for and one (1) opposed, with Council member Lyles voting against, to reduce the George Bush Library allocation to $25,000 and charge the library to approach other entities for matching funds, (motion r.. ..o Page 14 City Council Minutes Tuesday, August 17, 2010 amended to amend the budget amount in the CVB as a direct pass trhough). The motion carried. CVB Budget MOTION: Upon a motion made by Councilmember Maloney and a second by Councilmember Fields, the City Council voted three (3) for and three (3) opposed, with Mayor Berry, Council members Lyles, and Ruesink voting against, to reduce the HOT contribution by $60,000, so CVB budget is $1 million. The motion failed. MOTION: Upon a motion made by Councilmember Crompton and a second by Councilmember Fields, the City Council voted four (4) for and two (2) opposed, with Council members Lyles, and Ruesink voting against, to fund CVB at last year's base contributions of $1,032,000. The motion carried. Arts Council Budget MOTION: Upon a motion made by Councilmember Crompton and a second by Councilmember Maloney, the City Council voted two (2) for and four (4) opposed, with Mayor Berry, Council members Lyles, Fields and Ruesink voting against, to move the budget ($289,000) from HOT to General Fund (Parks Budget) as a pass through fund. The motion failed. MOTION: Upon a motion made by Mayor Berry and a second by Councilmember Fields, the City Council voted four (4) for and two (2) opposed, with Council members Maloney and Lyles voting against, to move $89,000 for O&M and $200,000 to affiliates. The motion carried. Electric Fund Revenues: $98,329,236 - Residential and Commercial assume 2% Growth - FYI I Proposed rate increase of 6% - Forecast Shows Future Rate Increases Expenditures: $98,349,929 - Operations & Transfers - $84,882,785 • Budget Reductions • Includes Purchased Power & Wheeling Costs - Service Level Adjustments - $84,500 • Solar Photovoltaic Rebate Program • Transmission Operating Certification Training Pay Adjustments - $91,168 - Debt Service - $4,481,585 r.r 1"W Page 15 City Council Minutes Tuesday, August 17, 2010 - Return on Investment - $8,809,891 Sanitation Fund Revenues: $7,107,394 ■ No rate increase in the Proposed Budget ■ Forecast Shows Additional Future Rate Increases Expenditures: $7,014,768 ■ Operations and Maintenance - $6,183,049 - Budget Reductions ■ Service Level Adjustments - $0 ■ Pay Adjustments - $79,271 ■ Return on Investment - $702,208 ■ Keep Brazos Beautiful - $50,240 3. Presentation, possible action and discussion on the 2010-2011 ad valorem tax rate; and, if necessary, on calling two public hearings on a proposed ad valorem tax rate for 2010-2011. There was no discussion or action taken on this item. 4. Executive Session will immediately follow the special meeting in the Administrative Conference Room. Competitive Matters {Gov't Code Section 551.0861; possible action The City Council may deliberate, vote, or take final action on a competitive matter in closed session. The City Council must make a good faith determination, by majority vote of the City Council, that the matter is a Competitive Matter. A "Competitive Matter" is a utility-related matter that the City Council determines is related to the City of College Station's Electric Utility Competitive Activity, including commercial information, which if disclosed would give advantage to competitors or prospective competitors. The following is a general representation of the subject(s) to be considered as a competitive matter. a. Electric Fund FY2010-2011 Proposed Budget Economic Incentive Negotiations {Gov't Code Section 551.0871; possible action The City Council may deliberate on commercial or financial information that the City Council has received from a business prospect that the City Council seeks to have locate, stay or expand in or near the city with which the City Council in conducting economic development negotiations may deliberate on an offer of financial or other incentives for a business prospect. After executive session discussion, any final action or vote taken will be in public. The following subject(s) may be discussed: a. Bio-Corridor Prospects such as Pharmaceuticals and other high tech industries 5. Action on executive session. No action was required from Executive Session. *AW ..r Page 16 City Council Minutes Tuesday, August 17, 2010 Now 6. Adiourn. Hearing no objections, Mayor Berry adjourned the Special Meeting at 8:55 p.m. PASSED AND APPROVED this November 10, 2010 ATTEST: APPROVED: City Secret , Mayor Nancy erry