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HomeMy WebLinkAboutMinutes City Council - 12/05/1978 - SpecialPRESENT: Mayor Gabe Lozano, Sr. Mayor Pro Tem Bob Gulley Council Members: David Diaz Ruth Gill Joe Holt Tony Juarez, Jr. Edward L. Sample MINUTES CITY OF CORPUS CHRISTI, TEXAS SPECIAL COUNCIL MEETING DECEMBER 5, 1978 7:00 P.M. City Manager R. Marvin Townsend City Attorney J. Bruce Aycock City Secretary Bill G. Read Mayor Gabe Lozano, Sr. called the meeting to order in the Coliseum. City Secretary Bill G. Read called the roll of required Charter Officers and stated that the necessary quorum was present to conduct a legally constituted meeting. Mayor Lozano stated that the purpose of the meeting was to conduct a public hearing on the proposed Charter Amendment Election; adding that citizens wishing to address the Council relative to this matter please sign their names and addresses on the lists provided at the registration table; and that they would be called to speak in the order that they signed. Mayor Lozano then gave a brief statement expressing the hope that the Council will endorse his suggestion that an outside consultant be employed to study and make a report on the City's management and operations. Mayor Lozano called for comments from the Council. Council Member Ruth Gill thanked everyone present for attending the public hearing and read from a prepared speech. Council Member Gill cautioned the citizens of Corpus Christi that the January 20 City Charter Election has the ability to affect the City but that she has great faith in the citizens of Corpus Christi; reminded those present that the City's Charter can be amended only once every two years; and that for a typical homeowner in Corpus Christi, the City's tax bill is only a little over a third of the total property tax bill. Council Member Gill informed the audience that the Council intends to show the citizens of Corpus Christi the facts and allow their reasoning to make the final decisions that will control the future of the City. Council Member Joe Holt agreed with Mayor Lozano's suggestion that the Council authorize an outside consultant agency to investigate and report its findings to the City on how money is being spent. Council Member Holt stated he wholeheartedly Q Minutes Special Council Meeting December 5, 1978 Page 2 endorses the idea. Council Member David Diaz commented that he endorses the idea to have an outside consultant agency study our City's ways and means but expressed concern that a proper agency, that is well versed in government management, might not be engaged to perform the study. Mayor Pro Tem Bob Gulley remarked that he had not been made aware of this plan until prior to the meeting; therefore, he would have to study the idea; he, personally, feels that it is time to change the method of preparing the budget and suggested that a limit be set and work the budget around this figure. Council Member Edward Sample noted that it is decision time in Corpus Christi and that this matter should be considered very seriously. Council Member Sample stated that he feels the people present share the same concern or they would not be here tonight to express their views; thanked those present for attending the meeting and added that he certainly appreciates their interest and concern towards the future of the City of Corpus Christi. Mayor Lozano then called on City Manager R. Marvin Townsend to proceed with the public hearing. City Manager Townsend stated that a memorandum with some exhibits attached has been provided the Council and is available to anyone present who wishes to refer to it; added that it may be helpful in reviewing the petition amendment and considering possible alternatives; briefly explained the memorandum; and called on the various Department Heads of the City to explain the effects the Charter Amendment would have on the City. City Attorney Bruce Aycock explained the legal aspects of the Charter Amendment Petition; Harold Zick, Director of Finance, gave a detailed explanation of the effect of the Petition on General Fund Revenues, the Computation of Assessed Values Using Assumptions in Petition, the Computation of Additions to Tax Roll from 1-1-76 through 1-1-78, the Computation of Amounts Required for Debt Service, and the Debt Service Schedule Assuming All Bonds are Sold; and Mark Gresham, Budget Director, explained the Analysis of Impact of Decrease in Tax Income. City Manager Townsend stated that these statements summarize the background information which had been provided by the staff and thanked the Department Heads for their presentations. Minutes Special Council Meeting December 5, 1978 Page 3 Mayor Lozano proceeded by calling on the first citizen wishing to address the Council. Mr. W. R. Strickland, 3926 Wickersham - stated he had decided to reserve his statement for the present time. Mrs. Tommie Ballengee, 2830 Austin - commented that the information provided by the City Staff is all very impressive but that the City should never have been allowed to be placed in this situation. Mrs. Ballengee, indicating she is still upset over a zoning matter, stated that the Council does not listen or pay attention to citizens but that the citizens are going to do something about it on January 20. Mayor Lozano responded that this was not a zoning matter and called on the next person to make his presentation. Mr. P. R. Ochoa, 1012 Leopard and representing Americans of Texas, Inc. - urged the Council to listen to the ideas and opinions of the citizens of Corpus Christi as they are 100% for tax cutting. Mr. Ed Ostergard, 1925 Merriman, and spokesman for Harry Hoag - addressed the Council in favor of the Hoag Amendment; questioned the Council's credibility and accountability; and made some derogatory remarks about the Council. Mayor Lozano interrupted Mr. Ostergard, in defense, stating that the Council is willing to listen to the citizens' views but will not stand for any insulting remarks. Mr. Ostergard continued by saying that he does not wish to be unkind but feels that it is necessary that the Council be realistic; that Harry Hoag has been consistently for tax relief; and that so far, Mayor Pro Tem Gulley has been the only one who is willing to do something about it. Mr. Ostergard further stated the Constitution of Texas has been changed before and can be changed again for tax limitation purposes. Mr. J. E. Dobbins, 5426 Chevy Chase - questioned the availability of the City tax surplus. City Manager Townsend responded that the final tax roll was not made available until late September at which time the staff became aware of the surplus. Mr. Townsend further stated that the actual figures that we received on anticipated tax values will produce an additional $600,000 in revenue and that of that $600,000, part of it will go into debt service and part will go into the general fund so that the actual collec- tion for general fund is approximately $450,000. Mr. Dobbins spoke again asking if the City can increase the City sales tax. Minutes Special Council Meeting December 5, 1978 Page 4 City Manager Townsend replied that the maximum City sales tax is only 1%. Mr. Dobbins then stated that he would like to see some sort of an alternative that not only affects the tax but that his City tax bill does not increase more than 3 or 5% and that any increase should come in new growth. Mayor Pro Tem Bob Gulley explained that the City cannot affect on assessed value adding that since the property is assessed on market value, the only thing the City can affect is the percentage of assessment on a home but that must be uniformed for all property. Council Member Joe Holt inquired of Mr. Dobbins that if he is addressing a question on property, specifically on his home, the Council has authorized a Resolution be taken to Austin which would allow the City to have a different tax rate for resi- dential and business properties but that there is nothing the City can do by itself; that the kind of proposal that Mr. Dobbins is seeking is at the State Constitution level; and that the worst thing that the citizens can do is to tie the Council's hands for two years so that the Council is not in a position to change. Mr. Dobbins then thanked the Council for their clarifications. Mr. G. E. Swaty, 4401 Oxford Drive - would like to see the taxes lowered; feels property value should be based on the purchase price and not be increased; is suggesting an alternative be placed on the ballot because people want a change and want a tax cut; and feels the people should be given a choice about what they feel is right. l Mr. Harold Alberts, 702 Wilson Tower - stated that he will support Hoag's proposal and feels that most of the people present will support it too unless the Members of the Council can lead them to a more reasonable alternative of at least one-third to one-half as strong as Hoag's proposal; suggests that 11 to 3 million I dollars be cut from ad valorem taxes; and claims taxes have not been fair as they have increased as much as 50% on some people's property and nothing at all on other people's property. Mr. Alberts further stated that he appreciated City Attorney Bruce Aycock's remarks about the Hoag Petition but ascertains that the citizens will become enraged if the Petition is taken into Court and found to be illegal. Mr. Alberts urged the Council to give a reasonable and genuine reduction and assured them the citizens will support that instead. Mr. Tom Hunt, #78 Townhouse Lane - is in support of the Council's idea that an outside consultant be employed to study the City's operation and feels that it is Minutes Special Council Meeting December 5, 1978 Page 5 money well spent; feels that personnel should be cut by attrition; and suggests combining the City and County Tax Offices as well as the City and County jails. City Manager Townsend made reference to the combining of City and County jails and explained that since the prisoners in the County jail are incarcerated for lengthy periods of time, they are under federal laws governing the imprisonment. Mr. Townsend further stated that the City prisoners are usually there for very short periods of time and therefore, are not under the federal regulations, adding that if the City and County jails were combined, the cost to the City would be much greater than the current expenses. Council Member Edward Sample thanked Mr. Hunt for his presentation and noted that one of the reasons that the citizens are able to express their views at this time is because the City is the only taxing body that makes it possible for citizens to do this. He pointed out that there are other agencies, such as the County and the Corpus Christi Independent School District, that charge almost 15% higher tax than the City and suggested that citizens address themselves to those agencies as well as the City. Mayor Pro Tem Gulley commented that the two million dollar tax cut that he is proposing as an alternative would not even be felt -- that it would all come back in a year, and that he is not talking about a budget cut but a tax cut instead. Margie Morrill, 435 Williamson, and President of League of Women Voters, - commented that the League is unable to position themselves on this issue because the membership must adopt a subject matter for study and then arrive at an agreement and take action. Mrs. Morrill offered the League's services to sponsor a debate on the Hoag Amendment, if it is the only proposal on the ballot, and on the City's alternative if there is one. Mrs. Morrill further stated that the Board will be meeting soon to make some tentative plans in regard to this debate but cannot make any definite plans until the Board learns what the Council's action will be. Ms. Mary Lou Huffman, Chairman of the Park and Recreation Board - objected to a tax cut, stating that such action would jeopardize the City's Park and Recreation programs; reminded the Council that during the Budget Hearing, people had indicated they were willing to pay for the services; hopes the Council will come up with an alternative which will eliminate a drastic reduction on the Park and Recreation programs; and presented Mayor Lozano with a t -shirt which read, "Happiness is Recreation". Minutes Special Council Meeting December 5, 1978 Page 6 Dorothy Bourq-Spann, 502 Del Mar - referred to some Caller -Times newspaper clippings regarding the growth of the City of Corpus Christi and stated that the Council can be accountable for the many accomplishments -- namely, the Convention Center. Mrs. Spann reminded the people present that when this convention center was being formulated, it was detained by Mr. Hoag, himself. Mrs. Spann objected to cutting funds for the arts, adding that our cultural enrichment programs are monetarily necessary to this community. Mr. Clifford Cosgrove, 3302 Olsen Drive - Spoke in favor of the Hoag Amendment stating that he fully supports it; and complained about the old County Courthouse not being on the City tax rolls. City Manager Townsend responded that a review would be made in reference to the old Courthouse building's ownership. Mr. Bert Beecroft, 7026 Hathor - was of the opinion that the City Council is committing an injustice to the citizens of Corpus Christi by not providing them with an alternative. Mr. Beecroft strongly urged the Council to come up with an alternative that will be meaningful to Corpus Christi, and that he feels certain that the citizens will support them. Mr. 0. J. Beck, Jr., 445 Peerman - agrees with the Mayor's idea on the possi- bility of having an outside committee look into and study this City's operations but expressed the opinion that it will not be much help. Mr. Beck stated that he believed the City Staff is in a better position to know where to reduce spending; that the Hoag proposal is too drastic; he does not feel the City can take that much cut in City Government; added that he prefers that an alternative be placed on the ballot; and praised the Council for doing a fine job in running the City. Mr. George W. Parrish, 438 Chase Drive - questioned the accelerated pace in which taxes are increasing; pledged his support to the Council if they can come up with a more reasonable plan; and warned the Council of the passage of the Hoag Amend- ment if a more appropriate alternate is not offered. Mr. Dennis Garza, 5841 Rio Vista Drive, a Richard King High student - objected to Mr. Ostergard's remarks criticizing the Council's accountability and credibility; opposed the Hoag amendment, adding that the $7 million tax cut proposed by Mr. Hoag is an excessive amount which would obligate the City to cut services; and that so far, Mayor Pro Tem Gulley's proposition is the best one made. Mr. Garza further stated he would like to suggest that the Council vote for a more modest proposal. Minutes Special Council Meeting December 5, 1978 Page 7 Mr. Charles A. Nichols, 1547 Lea Lane - favors the Hoag Amendment and suggests that City Government spending be limited. Mr. W. H. Brown, 5209 Moultrie Drive - disagreed with the idea of an outside consultant studying the City's operations; favors an alternative; and expressed the opinion that Mr. Gulley's plan is a more feasible one. Mr. Ed Prichard, Attorney, 4925 Cherry Hills - stated that when he appeared before the City Council prior to this public hearing, he had met with quite a lot of animosity, but appreciates what the Council is doing and is of the opinion that the Council is showing the Citizens that they are doing what they can. Mr. Prichard reiterated that the average homeowner is asking for some tax relief; suggested that when talking with the legislature, the Council might suggest some sort of exemption for homeowners in amount of $35,000 which would benefit the little man as well; suggested that efficient spending in City government be practiced; and praised Mr. Townsend for being the most competent City Manager. Mr. Benny Benavidez, 2421 Cleo - recommended that the City replace City -owned automobiles with motor scooters, thereby saving $1.7 million on the cars, equipment purchases, and gas. Mrs. Mary Williams, 601 Barracuda Place - favored an alternative and recommended that a maximum $.43 tax rate plus debt service of assessed value be proposed, and supported Council Member Gill's proposal to increase the homestead exemption to Senior Citizens of 65 years and over to $25,000 - $30,000. Mr. Mike Wilson, 6206 Coral Ridge Drive - Believes the citizens will support the Council if they are given a valid proposal; suggests that the City's spending be cut and not services; and expressed concern that if the Hoag Amendment should pass, it will present a problem for future growth. Mrs. Jane Crain, 711 Naples Street - inquired how the Council could put an alternative on the ballot for the election when she and her group had to obtain 6,000 signatures. Mayor Pro Tem Bob Gulley responded that the City Council could call an election to amend the Charter without having a petition. City Manager Townsend further explained that Article 11, Sec. 5 of the Consti- tution of the State of Texas provides for the amending of the Charter by a vote of the people, while Article 1170 of Vernon's Annotated Civil Statutes provides the method of conducting an election when the governing body desires to submit amendments Minutes Special Council Meeting December 5, 1978 Page 8 to any existing charters, said body may on its own motion, in the absence of a petition, and shall, upon receiving a petition signed by qualified voters in such city, town or political subdivision in number not less than five per cent (5%) thereof or 20,000 signatures, whichever is less, submit any proposed amendment or amendments to such charter. Mrs. Crane continued by criticizing the unfairness on the valuation of her property, stating that her property, which is an inside lot, had been assessed higher than that of her neighbors; that she is 100% for the Hoag Amendment; and concluded by asking if the Council felt that it was their duty to fight the citizens rather than represent them. Council Member David Diaz remarked that the Council was not opposing the citizens but seeking information in answer to the petition. Mr. Mike Zepeda, 4533 Townsend - thanked the Council for allowing the citizens an opportunity to express their views. Mr. Zepeda stated that he likes living in the City of Corpus Christi and doesn't mind paying taxes because he is able to obtain good services and doesn't mind paying for them; and that he favors an alternative if it is not too drastic and does not stop this City's progress. Mr. G. W. Gaines, 8202 Wooldridge - complained of property tax increase being too high; does not particularly like the Hoag amendment but will vote for it if it means a tax relief; favors Mr. Gulley's proposal; feels certain the citizens will support the Council's alternative if one is provided; and hopes that the Council does not increase fees in services. Mr. Woody Jones, President of the Mercantile National Bank - stated that if the Hoag amendment should pass, it will be a catastrophe to the City inasmuch as the citizens will be forced to live with it for the next two years; believes that it is necessary that the Council offer a sufficiently large alternative to otherwise attract people who will be voting for the Hoag plan; added that people have told him that possibly several alternatives should be placed on the ballot;•and thanked the Council for holding the public hearing and listening to the citizens' views. Mr. Sam Gillanham (address unknown) - complained that property taxes are unfair in that people living next to each other with equivalent homes are not valued properly at the same tax rate, and expressed concern in that rental property owners may pass along increased taxes to their tenants. No one else addressed the Council regarding this matter. s Minutes Special Council Meeting December 5, 1978 Page 9 Council Member Gill stated that she had noted that some criticism had been made against the Council for funding the Ballet and similar organizations and added that she just wanted to remind members of the audience that such funding is from the hotel -motel tax and is not taken from ad valorem taxes. Mayor Gabe Lozano expressed appreciation to all of the citizens who had appeared before the Council. Motion by Gulley that the public hearing on the Charter Amendment Election be closed; seconded by Holt, and passed unanimously at 10:00 p.m.• RR I GABE LOZANO, SR., Mayor of the City of Corpus Christi, Texas, certify that the foregoing minutes, same being for the period of December 5, 1978 through December 20, 1978, inclusive, and having been previously approved by Council Action, are by me hereby approved as itemized. 12/05/78 - Special Meeting 12/06/78 - Regular Meeting 12/06/78 - Special Meeting 12/13/78 - Regular Meeting 12/20/78 - Regular Meeting 12/20/78 - Special Meeting GABE LOZANO, City of Corp R. s Christi, xas 9