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HomeMy WebLinkAboutMinutes City Council - 06/30/1992 - SpecialMINUTES CITY OF CORPUS CHRISTI, TEXAS Special Council Meeting June 30, 1992 4:10 p.m. PRESENT Mayor Mary Rhodes Mayor Pro Tem Betty Jean Longoria Council Members: Cezar Galindo Leo Guerrero Edward Martin Joe McComb Dr. David McNichols Clif Moss Mary Pat Slavik ABSENT Joe McComb City Manager Juan Garza City Attorney James R. Bray, Jr. City Secretary Armando Chapa Mayor Rhodes called the meeting to order in the Council Chamber of City Hall. Assistant City Secretary Koenning performed a roll check and all members of the City Council, with the exception of Council Member McComb, were present. City Manager Garza gave an overview of today's budget proceedings which would include discussions on the 2 Plus Garbage Pickup Plan, major revenue sources in the General Fund, Industrial District agreements, property and sales tax rates, and Central Power and Light franchise fee. Solid Waste Services Mr. Bob Bruner, Director of Sanitation, further discussed the proposed 2 Plus Garbage Pickup Plan, and a question and answer period followed. Responding to Council Member Slavik's concern regarding the date of federal mandates to reduce the waste stream to the landfills, Mr. Bruner stated the goal set by the federal government is 1994. Minutes Special Council Meeting June 30, 1992 Page 2 Relative to Council Member McNichols' request regarding procedures and fees for an optional second pickup, Mr. Bruner discussed arrangements in other cities providing additional pickups, and stated that this option is usually expensive. Council Member Martin next commented that this program appears to be a major policy issue and not an area which could be used for savings, and suggested a long term project be developed to comply with federal mandates. He further suggested implementing a pilot program in-line with the availability of trucks and containers which would include options for the elimination of public compost and public shredding facilitates. He also stated that the savings of $970,000 for the truck fleet was a delay of expenditures and the needed expenditure would remain if not resolved this year. He suggested conducting a major study of other states regarding their procedures dealing with yard waste since it contributes eighteen to twenty percent of waste at the landfills. After considerable deliberation, the consensus of the Council was to postpone decisions regarding the Solid Waste Services Department until further options could be considered. Mr. Garza stated that he would provide additional information on alternatives at the next council meeting which would include increasing garbage pickup fees, and implementation of a pilot program or phase-in approach. Industrial District Agreements City Manager Garza gave an update on the Industrial District agreements and requested Council support in the negotiations. Mr. Tom Utter, Director of Development Services, gave a brief history on the establishment of the Industrial District agreements and commented on the provisions in the original contract. Mr. Utter next discussed the City's proposed changes to the Industrial District agreements which would include increasing the payment in lieu of taxes formula from a maximum of 50 percent to 75 percent of assessed improvement value, and increasing the phase-in of new improvement appraised values from five to fifteen percent per year. He further stated that this new approach would enable the City to move towards parity regarding the Industrial District. Mr. Utter next responded to a series of questions raised by Council regarding the present costs to the Industrial District as compared to costs if location were inside city limits. Council Member Martin requested information regarding exact figures of this comparison. Further deliberation determined that the industries self-sufficiency regarding insurance, fire protection, inspection needs, etc., fully balanced the City's loss of additional funding which would be realized through annexation. Responding to Council Member Galindo's questions regarding the renewal of the contracts, Mr. Utter stated that the renewal can be initiated repetitiously upon Council's direction, and the contract period cannot exceed seven years. Mr. Galindo also requested information on a comparison of outside and inside city limit averages for water, gas, and wastewater rates, and Mr. Utter stated he would provide a precise amount to the Council next week. Also, Mr. Galindo requested the on-line date for new construction and Minutes Special Council Meeting June 30, 1992 Page 3 Mr. Utter stated it is January 1 following construction completion. Additionally, Mr. Galindo inquired regarding the average individual industry increase, and Mr. Utter stated it would be approximately seven percent of the overall tax burden and gave examples. Council Member Slavik inquired regarding the exact amount the City would realize in the new contracts, and Mr. Utter stated this amount would depend on the tax appraisal role for new construction, but determined an approximate minimum amount of $1.5 million. Mayor Rhodes adjourned the meeting for a dinner break. Mayor Rhodes reconvened the special meeting. General Fund Revenue and Expenditures City Manager Garza gave a presentation on the major sources of revenue for the General Fund. Property Tax: Mr. Garza first outlined the property tax rate through a ten year comparison of taxing entities including the percent increases in tax levies. He further compared past percent changes in the tax rate for assessed values, and pointed out the City's portion is twenty-three percent of the overall total taxes in Corpus Christi for 1991. He further commented on other Texas cities and compared them to Corpus Christi. Responding to Council Member Martin regarding tax rate increases on individual homes in the City, Mr. Garza stated he will provide a report on this information as soon as it is available. Relative to Council Member McNichols' concern regarding the reappraisal of homes in the City, Mr. Garza commented that there has been a decrease in the average residential property assessment this year, and stated that he will provide further information regarding the reevaluation procedures. Mr. Garza next discussed the distributed material entitled "City of Corpus Christi Change in Annual Debt Service resulting in 1992 Refunding including Principal and Interest," and detailed the initial payments and the miscalculation of revenues dedicated to the fund. Responding to Council Member Moss' inquiry regarding off -setting the loss of potential revenues through the early payment property tax program, a discussion developed and it was determined that the City could not increase property tax rates in increments of one percent a month to off -set the loss of potential revenues. Minutes Special Council Meeting June 30, 1992 Page 4 Sales Tax: Mr. Garza presented an overview of the history of the City's sales tax and commented that the economy is flat in this area. Interest Revenue: In regard to the City's investment programs, Mr. Garza reviewed interest revenue and stated it is low because of the present interest rates. Central Power and Light Franchise Fee: City Manager Garza further discussed the revenue from the Central Power and Light franchise and stated that revenues are down due to the weather pattern. Mayor Rhodes suggested that the distributed material on the General Fund revenues and expenditures be circulated to the public to facilitate understanding. She further requested immediate action on a program explaining Winter Averaging. In a return to the subject of the Industrial District agreements, Mayor Rhodes moved to instruct the staff to put a motion on the agenda next week to authorize the City Manager to "fast-track" the Industrial District negotiations including strong support from the Council regarding the City's proposal. She further stated that the City's position tends to protect the industrial districts and is not meant to be a negative assertion by the City towards the Industrial Districts. This was seconded by Mayor Pro Tem Longoria, and passed unanimously. Issues Dealing with Specific General Fund Departments Police Alarm Fees: Chief Henry Garrett discussed the ordinance regulating the operations of the alarm system and commented on the excessive amount of false alarms in the City. He stated that the number of false alarms is eighty-two percent of total calls. He referred to the proposed changes which would include charging an annual fee of $10 to each permit holder, raising the service fee from $30 to $50 to the permit holder for each false alarm, and lowering the allowable false alarms from eight to five. Council Member Martin commented on a reimbursement fee to the City from the permit holder for false alarms, and Mr. Garrett discussed the importance of responding to each alarm. Council Member Galindo suggested that the five allowable false alarms be reduced further, and Mr. Garrett stated that this amount is set by the State. Minutes Special Council Meeting June 30, 1992 Page 5 Responding to a question from Council Member Moss, Mr. Garza stated that the change would improve conditions at the Police Department, but was not anticipated to provide a distinguishable increase in revenue. Bayfront Arts & Science Park: City Manager Garza discussed the possibility of receiving funding from the hotel/motel tax revenue to support maintenance provided in the General Fund to the Bayfront Arts & Science Park. He stated that this funding would include full reimbursement of $206,070 from the Tourist and Convention Fund and is incorporated into the proposed budget in the Convention Center Fund. A discussion ensued and Mr. Garza responded to specific line items of maintenance expenses and stated that he would provide further information detailing individual expenditures. Council Member Martin stressed the importance of reducing the number of transfers between funds. Further, Council Member Martin commented on the use of property taxes to pay the Convention Center's debt service funds as stipulated in the Bond Issue. He suggested the alleviation of use of the Tourist and Convention monies which would reduce the need for the property tax increase in the Debt Service Fund. Mr. Garza stated he would examine this aspect and provide the Council more information regarding the original bonds and the means of payment. Council Member Slavik inquired regarding the alternatives listed in the General Fund Discussion Papers, and Mr. Garza stated that the alternatives were not included in the proposed budget and could be exchanged for original proposals. Department Consolidation: City Manager Garza called attention to the consolidation of Traffic Engineering with the Street Department, and Neighborhood Improvement with Building Inspections. Police Trust Funds: Mr. Garza discussed the fleet maintenance at the Police Department and stated that there will be a one time purchase of police vehicles out of the Law Enforcement Trust Fund. Issues Dealing with Aviation. EMS. Golf Centers. and Marina Funds Aviation: Mr. Garza explained the change in the City's agreements with the airlines which involved a change in contract design. A discussion developed and it was determined that the utility fee phase-in would allow these fees to become part of the cost base on which airline and tenant fees are set without a major impact in any one year. Minutes Special Council Meeting June 30, 1992 Page 6 Golf Centers: Responding to Mayor Rhodes' question regarding the City's golf courses, City Manager Garza stated that the budget was prepared under the assumption that the two existing golf courses would remain under the ownership of the City, and included the new green rates. Council Member Martin requested a report regarding these green rates. Mr. Garza stated he would provide information on privatization and construction of a new golf course and RV Park at a later time. A discussion developed regarding the monthly discount cards and it was determined that this deletion would provide more revenue and improve golf course conditions. Emergency Medical Services: Council Member Slavik inquired regarding EMS funding, and City Manager Garza stated that the budget included support in the amount of $553,000 from Regional Transit Authority and contributions from the General Fund. Mr. Garza further discussed the negotiations between the City and the hospital district, and stated that he proposed using hospital district contributions initially to pay off the deficit of approximately $1.3 million. Council Member McNichols referred to the proposed temporary surcharge fee discussed earlier for users of EMS, and City Manager Garza stated this fee had not been imposed in other cities and did not feel it was practical. Further, Mr. McNichols inquired how other cities balanced this type of service, and Mr. Garza stated that every system examined subsidized EMS with public dollars, including privatization. Mayor Rhodes requested that due to time limitations the discussion be limited to only those departments which involved major decisions. Other related departments: City Manager Garza explained that the Maintenance Services Fund is supported by other funds in the City such as the General Fund, Wastewater, and Gas. Council Member Martin inquired if the vehicle fleet is part of this fund, and City Manager Garza stated in the affirmative. Council Member Martin inquired if the accounting result of transferring, particularly vehicles, results in deficits to the balance sheets and income statement of the operating system for the enterprise fund. He further stated the effect was that some funds realized a one time savings due to not budgeting certain expenditures. Mr. Garza stated he will provide detailed information on this matter. MIS Fund: City Manager Garza stated that the only change in the MIS Fund is the management of the 800 MHZ public safety radio system. He further explained the reasons for this transfer. Minutes Special Council Meeting June 30, 1992 Page 7 Senior Citizen Exemptions Council Member Martin discussed the proposed senior citizen tax exemption and City Manager Garza explained the reasons for this proposal. Next, Mr. Martin moved to drop any consideration of a change in the senior citizen exemption from the consideration of the budget, seconded by Council Member Slavik, and passed unanimously. Other Budget Matters: Council Member Slavik commented on the lowering of Choke Canyon debt and inquired regarding the savings of $393,837, and City Manager Garza stated it was used to allow the decrease to four percent in wastewater rates, continuation of odor control program, and sewer clean-out program. City Manager Garza further commented on the issues before the Council at the next meeting which would include transportation user fees, public events, police coverage, and library books which are not in the proposed budget. Mayor Rhodes inquired regarding the remaining Council decisions, and City Manager Garza stated he would develop options for the garbage pickups and health insurance fund questions posed by Coastal Bend Health Care Plan. He further suggested that the property tax decision remain until the end of the proceedings. Council Member Martin referred to his question regarding the elimination of Wednesday garbage pickup and requested more information on the matter. Council Member Moss referred to his question regarding the net budget of revenues and expenditures, and City Manager Garza further explained the figures and stated that he would provide further detailed information. Mayor Rhodes called for comments from the audience. Mr. J. E. O'Brien, 4130 Pompano, commented on reductions for the General Fund which included transferring the Economic Development Corporation to the Chamber of Commerce, and reduced public funding. He further commented on the two cents tax increase. Council Member Galindo commented on the Council's request regarding a five percent ending fund balance in General Fund. There being no further business to come before the Council, Mayor Rhodes declared the Special Council Meeting adjourned at 8:00 p.m. on June 30, 1992. s s s s s s s s••• s s I HEREBY CERTIFY that the foregoing is a true and correct copy of the Minutes of the Special Council Meeting of the City of Corpus Christi of June 30, 1992, which were approved by the City Council on July 7, 1992. WITNESSETH MY HAND AND SEAL, this the 21st day of July, 1992. 0 Armando Chapa City Secretary SEAL