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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,
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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.
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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.
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