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HomeMy WebLinkAbout082802S CC Min CITY COUNCIL SPECIAL SESSION WEDNESDAY, AUGUST 28, 2002 MUNICIPAL BUILDING 3800 UNIVERSITY BLVD. 6:00 P.M. The City Council convened in Special Session in the Municipal Building Conference Room (3800 University Blvd.) on August 28, 2002, with the following members present: Mayor Lewis presiding, Council Members May, Farley, Griffin, and Jackson. The City Manager, City Secretary, City Attorney, Finance Director, Parks and Recreation Director, Interim Public Works Director, Utilities Superintendent, Building Official, and General Services Superintendent were also present. The notice for this meeting was posted in accordance with the Texas Government Code, rd Chapter 551, on the 23 day of August 2002 at 4:30 p.m. City finances, facilities, programs and the 2003 Budget. Matters related to city finances, facilities, programs and the 2003 Budget including revenues and expenditures for current and future years for all funds, and capital improvements and related programs and expenditures, including YMCA facilities and other park projects, police and public works facilities, street lighting, sidewalks, drainage and flood control, animal recreation facility, traffic and parking and other public improvements. The City Council and Staff discussed the proposed 2003 budget for the Finance and Administration, Parks and Recreation and Public Works Departments. Increases in health care, employee raises and funding for the Recreation Center was also addressed. Mark Lowes from the Tri Sports Association requested that the City Council increase the City?s contribution to Tri-Sports by $3,000 for 2003. Ad valorem taxes and resolution proposing tax rate and calling public hearings. Matters related to ad valorem taxes including Resolution No. 2002-09. Mayor Lewis read the caption of Resolution No. 2002-09 as follows: A resolution proposing a tax rate and scheduling public hearings; and containing findings and provisions relating to the subject. Finance Director Walter Thomas reported that all political subdivisions of the State of Texas who levy an are required to publish notices and hold a public ad valorem tax hearing if they intend to raise property taxes. The requirement does not distinguish City Council Special Session, August 28, 2002 between increased property taxes due to increases in assessed values or increases in the property tax rate. In order to avoid the notice and hearing requirements of the State Law, the City could levy a property tax rate of 41.1 cents per $100 valuation. Since property tax revenues dedicated to debt service must increase to 24 cents per $100 valuation to fund increasing debt service, the City must reduce the property tax rate allocated to operations to 17 cents per $100 valuation to avoid the notice and hearing process. The impact of the loss of approximately $617,500 General Fund revenues would require a significant reduction of services The proposed budget is based on a property tax rate of 43.5 cents per $100 valuation, a 1.5 cent per $100 valuation increase from last year?s property tax rate of 42 cents per $100 and below the 44.0 cent roll back tax rate. Since the 43.5-cent rate does not exceed the rollback tax rate, its adoption will not trigger the ?roll back? provisions of the Property Tax Code offering the citizens an opportunity to petition for a rollback election. A record vote must be taken determining the maximum tax rate City Council anticipates approving. If the tax rate is reduced after hearing citizen?s concerns at the public hearing the City will have complied with the law. If the tax rate is set above the published amount, the City will have to republish and hold another public hearing. Since the highest rate under consideration is 43.5 cents per $100 valuation, proposing this rate offers the most flexibility to the Council. At 43.5-cent per $100 valuation, the City?s property tax assessed against a home valued at $445,922 (the average taxable value) will increase $201 per year to $1,940 and total property tax revenues will increase 8.7 percent. After discussion of this item, members of the City Council agreed that the proposed tax rate should be set at $.44 per $100 valuation. This amount represents the highest possible rate that could be adopted for the budget year 2003 and will be considered further during the public hearing. A motion was made by Council Member Farley, seconded by Council Member Jackson to adopt Resolution No. 2002-09 which would begin the process of assessing a property tax rate by proposing a tax rate of $.44 per $100 valuation and calling public hearings on the tax rate and the 2003 Budget for a council meeting scheduled on September 23, 2002. A vote was taken on the motion with the following result: Voting Aye: Mayor Lewis, Council Members May, Farley and Jackson Voting Nay: Council Member Griffin Absent: None City Manager. 2 City Council Special Session, August 28, 2002 Matters related to the appointment, employment, evaluation, reassignment and duties of a public officer or employee (City Manager) and related employment agreement. A motion was made by Council Member May, seconded by Council Member Jackson, that (1) Michael Ross is hereby appointed City Manager, effective immediately. (2) The attached employment agreement is approved and authorized, to become effective as of today, subject to: (a) a budget amendment to provide the necessary funding (b) certification by the Finance Director, and (3) signature by the Mayor on behalf of the City. (3) The Finance Director is directed to prepare and submit the necessary budget amendment at the next regular City Council meeting. A vote was taken on the motion with the following result: Voting Aye: Mayor Lewis, Council Members May, Farley, Griffin and Jackson Voting Nay: None Absent: None Adjournment. With no further business to come before the City Council at this time, a motion was made by Council Member Jackson, seconded by Council Member May, to adjourn. The Special Session adjourned at 7:45 p.m. 3