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HomeMy WebLinkAboutMinutes City Council - 04/04/2000 - Public HearingI HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Bond Program Public Hearing of the City of Corpus Christi of April 4, 2000, which were approved by the City Council on April 11, 2000. WITNESSETH MY HAND AND SEAL, this 1 lth day of April, 2000. rmando Chapa City Secretary SEAL PRESENT Mayor Samuel L. Neal Jr. Mayor Pro Tem Mark Scott Council Members: Javier D. Colmenero Melody Cooper Henry Garrett Dr. Arnold Gonzales Rex A. Kinnison Betty Jean Longoria John Longoria MINUTES CITY OF CORPUS CHRISTI, TEXAS Bond Program Public Hearing April 4, 2000 6:10 p.m. City Staff: City Manager David R. Garcia Deputy City Manager George Noe City Attorney James R. Bray Jr. City Secretary Armando Chapa Recording Secretary Rachelle P. Ramon Mayor Neal called the hearing to order in the Council Chambers of City Hall. City Secretary Chapa checked the roll and verified that the necessary quorum of the Council was present. The Mayor said this was the first of five public hearings concerning the 2000 bond program for the city, which the Council plans to bring to the voters on November 7, 2000 during the general election. He said the format of the hearing that night included an overview of the bond program by staff followed by public comment. Deputy City Manager Noe gave a detailed computer presentation of the bond program, including the property tax proposals and the three sales tax proposals. Mayor Neal then called for public comment. Mr. S.M. Cowling, 138 Southern St., asked how long it would take to retire the bonds for the seawall repairs and the multi-purpose arena, and whether both 1/8th cent sales taxes would be dropped once the bonds are retired. Mr. Noe replied that the assumption staff has been utilizing is that 20 -year bonds will be issued and the tax will end once the bonds are retired. Mr. Cowling also asked how much the economic development tax would produce, based on current sales, and what the current economic development budget is. Mr. Noe said it would produce approximately $3.8 million and the current city allocation for the economic development function is about $375,000 a year. Mayor Neal pointed out that staff should explain how a separate governance board will be established for the economic development sales tax. Mr. Noe said that under the statute, the city would facilitate the creation of a non-profit 4B corporation that would have a seven -member board of directors, at least three of whom would have to be non-public officials. He said the board would administer the economic development sales tax. Mr. Noe added that there are a number of eligible expenses that the revenue stream could be utilized for, including direct incentives to industry and the creation of industrial parks or other kinds of public facilities. Minutes Bond Program Public Hearing April 4, 2000 Page 2 Mayor Neal and Council Member Scott pointed out that the 4B corporation they were discussing is different from the existing Economic Development Corporation, which used to be part of the Greater Corpus Christi Business Alliance. Mr. Cowling also asked if the economic development sales tax will have a term limit (known as a "sunset" provision). Mr. Noe said that unlike a 4A corporation, there is not a specific provision that allows for that with a 4B corporation. However, staff is researching that to determine if they could include whatever limitation the Council might consider for the ballot language prior to the election. Mr. Jack Gordy, 310 Norton St., said there have been many comments about the 1986 bond program, and money is being borrowed from the Utility Fund to the Street Bond Fund to complete projects from the 1986 program. He said that sounds like mismanagement and he asked if anyone can guarantee that the 2000 bond program will be better managed. Mayor Neal replied that there were no bonds sold in 1986 that the city is paying off with additional funds today. The bond program that was authorized in 1986 was based on a number of assumptions that were not realized, such as growth in the community and the tax base. He said the purpose of the financing situation with the Utility Fund was to get the remaining 1986 bond projects under contract through a consolidated financing program that saves the taxpayers money. He noted that the Council was proposing this $29 million bond program because it can be substantially completed in three years. Mr. R.F. Masker, 1813 Wallace, asked if the economic development sales tax would be used for the start up of hotels and motels in the tax increment financing district, which is associated with Packery Channel. Mayor Neal said the sales tax would not be used for that purpose. Mr. Irving Dietz, 455 Miramar, asked several questions related to the 1986 bond program. Mayor Neal asked Mr. Dietz if he had any specific questions about the 2000 bond program. Council Member Colmenero noted that this bond program would be more manageable. Council Member Kinnison said the Council had addressed Mr. Dietz's and other people's concerns about the 1986 program in the past, and he noted that the 2000 program needed to be successful because the Council was going to have to go back to the voters in three years with another program since there were many unmet capital needs. Mr. Dietz also asked when the remaining 1986 projects will be completed, which Mr. Angel Escobar, Director of Engineering Services, explained. Mr. Leon Perez said he was concerned about the people who could not afford to pay the additional taxes. He said $43 million to repair the seawall seemed like a lot of money, and he said there were no funds included for the libraries. Mr. Charles Tamez, 1011 Texas Ave., said that Leadership Class XXVIII is very excited about this bond election, which they feel the city desperately needs. Minutes Bond Program Public Hearing April 4, 2000 Page 3 Mr. J.E. O'Brien said a sales tax hits low-income persons the hardest. In response to a question from Mr. O'Brien, Mr. Garcia said that with regard to the arena, staff would like to set up an amount for the actual construction as well as an amount to maintain the facility for a period of time. Once that amount is paid off, the 1/8th cent sales tax would end. Mr. O'Brien said the economic development tax was the equivalent of a blank check, which has not been readily approved by the community in the past. He questioned whether the seawall repairs should be made under the general obligation debt rather than a sales tax. He said there is the possibility of a tax increase in order to fund the upcoming city budget as well as utility rate increases again, which he said would not be very conducive to approval of the 2000 bond program. Mayor Neal asked Mr. O'Brien what he and the Taxpayers Association would do to help the Council reinvest in the future of the city. Mr. O'Brien replied that proper management and accountability were important. A discussion ensued and several Council members commented about how this Council has been working hard to be fiscally responsible. Mr. Bill Kopecky, 3609 Topeka, said he did not think the seawall was eligible as an economic development project. He urged the Council to form the 4B corporation soon and appoint the board in order to be in compliance with state law. He also urged the Council to seek, through one of the state representatives, a written opinion from the Attorney General. Mr. Foster Edwards, CEO of the Association of Realtors, said their organization supports the Council and they are excited about the proposed 2000 bond program. He discussed the importance of investing in the city's infrastructure, the multi-purpose arena, and the economic development tax. Mr. Dan Viola, Athletic Director at Texas A&M University -Corpus Christi, said he thinks all of the proposed projects are needed, in particular the multi-purpose arena. He discussed ways in which the arena can be used by many entities. Council Members Gonzales and Betty Jean Longoria asked those who are in favor of the bond program to help get the word out about it and to encourage others to support it. City Secretary Chapa said the next public hearing will be on April 12th at the Northwest Senior Center, followed by one April 26th at Grant Middle School. There being no further business to come before the Council, Mayor Neal adjourned the hearing at 7:20 p.m. on April 4, 2000. * * * * * * * * * * * * *