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
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