HomeMy WebLinkAbout011298S CC Min
CITY COUNCIL WORKSHOP SESSION
MONDAY, OCTOBER 12,1998
COMMUNITY BUILDING
6104 AUDEN
6:45 P.M.
The City Council convened in Workshop Session in the Community Building (6104
Auden) on October 12, 1998, with the following members present: Mayor Fogler
presiding, Council Members Davis and Neal. The City Manager, City Secretary, City
Attorney, Fire Chief, Police Chief, Parks and Recreation Director and Plant Supervisor
were also present. Council Members Sparkman and Starich were absent.
AGENDA REVIEW:
The City Council reviewed the regular meeting agenda and discussed items under
consideration with the Staff.
WARNER CABLE ACCESS CHANNELS:
The City Council discussed the Warner Cable Access Channels with Pam Thorne, Vice
President of Public Affairs for Warner Cable.
Ms. Thorne reported that Warner Cable was in the process of negotiating with the City of
Houston to provide the educational channels.
The City Council recessed the Workshop Session at 7:45 p.m. to convene in Regular
Session. The Workshop Session reconvened at 8:55 p.m.
The City Attorney left the meeting at 9:00 p.m.
BOND COMMITTEE REPORT:
The Staff presented a report on projected vs. actual tax rates from the 1995 Bond
Committee Report.
Finance Director Walter Thomas reported that in 1995 when the City's ad hoc Bond
Committee was preparing its report, certain assumptions were made relating to future tax
rates and assessed value. The BC predicted that once the City began to issue bonded debt,
the tax rates would rise approximately two cents a year. Under this scenario, the tax rate
would rise to $0.57 by the year 2007.
The committee assumed, however, that the City would use $5 million of its available
fund balances to begin the program and avoid new debt until 1998. This course was not
taken and new debt was actually issued in 1996. But even with this early bond sale, the
property tax rate has remained within projections prepared by the committee. The effect
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of the increases since 1996 on an individual homeowner has averaged an additional $60
in property taxes per year.
The average value of a West U residence has increased from $250,000 in 1995 to close to
$300,000 today. The value of an individual residence may not have experienced this 20
percent increase in value. The redevelopment of West U is the primary factor in
increasing assessed values, not increases in the appraisal of existing property.
Redeveloping an existing property valued at $150,000 into a $400,000 property can add
as much as $325,000 of assessed value to the tax roll. One hundred new homes add $40
million or more to values. Mr. Thomas commented that it would appear that much of the
cost ofthe infrastructure replacement program is being borne by new residents.
The committee also recommended the separation of the water and sewer fund'sfmances
from the City's General Fund. This has been accomplished. The good news is that the
45% increase in rates projected by the.committee by the year 2000 will not take place.
So far, the City has increased rates 10%, with another rate increase of 15% anticipated in
late 1999 to pay for the most recent bond issue.
Mr. Thomas stated that the Council can report to the residents that as a result of excellent
financial stewardship and low, long term interest rates, the City continues to maintain
good fund balances and the infrastructure program's fmances are well within the
parameters originally set out by the committee. Further, revised projections would
indicate that the top tax rate required to finance the program in 2007 could be as much as
three cents lower than the projected rate of $0.57 per $100 of assessed valuation
projected in 1995.
Mr. Thomas commented that the Staff continues to. remain concerned over the amount of
funding available to complete the infrastructure program. Because it is so difficult to
make accurate cost estimates eight to ten years into the future, it is not known how much
of the program can really be completed for $63 million.
BUDGET WORKSHOP:
The City Council discussed the 1999 Budget.
VISION 2020:
The. Staff reviewed the upcoming Town Meeting and considered a final schedule for the
completion of the Comprehensive . Plan.
A fmal schedule for completion was not discussed at this time by the Council.
INQUIRIES. REQUESTS AND COMPLAINTS:
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The City Council reviewed matters received from the public and referred them to the
appropriate department or agreed to place them on a future agenda for consideration or
action.
ADJOURNMENT:
With no further business to come before the City Council at this time, a motion was made
by Council Member Davis, seconded by Mayor Fogler, to adjourn. The Workshop
Session adjourned at 10: 12 p.m.
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