HomeMy WebLinkAboutMinutes City Council - 06/07/2011 - WorkshopMINUTES
CITY OF CORPUS CHRISTI, TEXAS
Council Workshop
June 7, 2011 — 1:30 p.m.
PRESENT
Mayor Joe Adame
Mayor Pro Tem Nelda Martinez
Council Members:
Chris Adler
Larry Elizondo, Sr.
Kevin Kieschnick
Priscilla Leal
John Marez*
Mark Scott
Linda Strong**
*Arrived at 1:36 p.m.
**Arrived at 2:18 p.m.
City Staff:
City Manager Ronald L. Olson
City Attorney Carlos Valdez
City Secretary Armando Chapa
Mayor Adame called the meeting to order in the Council Chambers of City Hall.
The invocation was delivered by Council Member Adler and the Pledge of Allegiance to the
United States flag was led by Council Member Kieschnick.
City Secretary Chapa called the roll and verified that the necessary quorum of the Council
and the required charter officers were present to conduct the meeting.
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Mayor Adame referred to the presentation on the FY2011-2012 Proposed Budget for the
General Fund. Assistant City Manager Oscar Martinez provided information on how the projected
$11.5 million shortfall in the General Fund was reconciled including maintaining the effective tax
rate; identifying department reductions in the amount of $5.8 million; the capacity to reserve $1
million for increased fuel costs; and the use of one-time expenditures.
Mr. Martinez referred to the powerpoint presentation including the breakdown of general fund
revenues; the revenue summary; change in sales tax collections; sale tax collection drivers; other
revenue sources; history of assessed valuations; history of net taxable values and adopted tax
rates; comparative tax rate information; the additional reduction required for maintaining the current
tax rate; tax rate impacts; information on the effective tax rate; the breakdown of general fund
expenditures; budget considerations for City Attorney, Finance, General Government, Health,
Human Resources, Human Relations, Libraries, Municipal Court, Museum, Police, Fire, Parks and
Recreation, Solid Waste, Street, Neighborhood Services, and Engineering Services departments;
and the budget schedule.
The following topics pertaining to this item were discussed: the average daily sales tax
income; the increase in sales tax collection over the prior year; the dollar amount of 1% of sales tax;
the percentage of companies in the industrial district that are at the maximum of 60%; cable
franchise fees collected from AT&T; the failure to receive franchise fees from dish providers; the
delay in receiving payments for Municipal Court fines; the reason the Warrant Roundup for
September is not incorporated into the budget; the difference between the revenues and
expenditures for Municipal Court; assessed valuations including new growth; community -wide
values measured by Appraisal District; removal of property exemptions for property owners not
entitled to exemption; appraisal of downtown building; state law regulating appraisals; whether the
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Minutes — Council Workshop
June 7, 2011 — Page 2
tax rates and entities different from other Texas cities; the comparison between the current and
effective tax rate; transparency should the internal audit department become privatized; the reason
for the $500,000 operating reduction in FY2012 for General Government; cross -training of
employees in Health Department; the department that AnimalNector Control traditionally falls under
in other cities; continuing discussions to move a portion of the Police Department to the Central
Library; the risks associated with increasing the time it takes to magistrate a defendant; re -design of
the school crossing guard program and evaluating the high risk at certain schools; consideration for
privatizing the mowing of "backyard" parks and sanitation in neighborhood parks; the issues
associated with beach maintenance; reduction at athletic fields; the number of senior centers and
the reason for selecting four (4) for reduction of hours; reduction in tennis center maintenance;
partnering with private sector for repurposing of parks; consolidating the beach permit fees;
mothballing Violet Pool; partnering with governmental entities on mowing; the construction schedule
for HEB Pool; partnership between Parks and Recreation and Code Enforcement for park
beautification; the amount of revenue received from 380 agreements; use of volunteers; future plans
for storm water and street maintenance; and consideration to eliminate an Assistant City Manager
position to fund proposed employee reductions.
Council Member Martinez requested historical information on the revenues for the Warrant
Roundup. Ms. Martinez also requested to have a conversation with the Appraisal District regarding
the monitoring of exemptions and an inventory of vacant city -owned property that are up to code to
lease or sell. Council Member Scott requested a presentation from the Appraisal District on the
methods used and data for appraising property and information on the legal impact on the public's
right to view information should the internal auditor department be privatized.
City Manager Olson asked the Council for direction on policy issues including the use of the
effective tax rate, the current tax rate, or other tax rate to assist with planning the budget and the use
of reserves. Mr. Olson stated that he will recommend changing the policy in the future of maintaining
10% of reserves in the budget to a range between 15-25%. City Manager Olson outlined his
strategies in the budget including a three-year budget; making efficiencies in the operation;
improving performance; restructuring the organization and reemphasize focus. Mr. Olson stated that
there is a lack of leadership, accountability, and teamwork between departments that he plans to
address and take action. Mr. Olson added that he plans to redirect the Office of Management and
Budget's focus to management processes, performance measurement, benchmarking, and best
practices. Mr. Olson reported that he plans to develop an investigative unit to address allegations of
kickbacks, bribes, and animal abuse.
City Manager Olson identified areas in the organization that are under -funded in the budget
including street maintenance, animal control, park maintenance, and code enforcement. Mr. Olson
stated that based on the challenges the City is facing, he is recommending maintaining the effective
tax rate.
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There being no further business to come before the Council, Mayor Adame adjourned the
Council workshop at 4:21 p.m. on June 7, 2011.
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I HEREBY CERTIFY that the foregoing is a true and correct copy of the minutes of the Workshop
Meeting of the Corpus Christi City Council of June 7, 2011 which were approved by the City Council
on June 14, 2011.
WITNESSETH MY HAND AND SEAL, on this the 14th day of June, 2011.
A19/1Q-6)61Th
Armando Chapa
City Secretary
SEAL