The City Council of the City of Abilene, Texas, met in budget worksession at 1:00 p.m. on July 14, 2000, in the Basement Conference Room of City Hall. Mayor Grady Barr was present and presiding with Councilmen Norm Archibald, Kris Southward, Victor Carrillo, Rob Beckham, Versie L. Brown, Jr., and Councilwoman Kay Alexander. Also present were City Manager Roy McDaniel, Assistant City Manager Michael Morrison, Director of Finance David M. Wright, City Attorney Sharon Hicks, City Secretary Jo Moore, and various other members of staff.

Mayor Barr welcomed those in attendance and stated Council would take a break at 2:30 p.m. today in order to tour the computer services and basement areas.

Councilman Norm Archibald gave the invocation.

City Manager Roy McDaniel stated for the benefit of the new Council, Finance Director David Wright will explain the functions of each Department in the City, and then the General Fund will be reviewed, which will require the majority of time, noting that it generates the most interest and spends the most dollars.

Mr. Wright updated the Council on the tax roll, sales tax, and proposed refuse fees, which include a 50-cent residential increase and an adjustment on commercial rates of $1.00 per cubic yard.

Mr. Wright presented a summary of General Fund Department Expenditures then briefed the Council on departmental functions and expenditures.

Council took a break at 2:35 p.m. to tour the Computer Services and basement areas and reconvened at 3:10 p.m.

Mr. Wright concluded the departmental functions and expenditures briefing, then reviewed the General Fund Summary of Revenues.

Mr. McDaniel reviewed the General Fund - Funded Capital Outlay and various unfunded requests, seized funds revenue & expenditures, water & sewer operating fund statement of revenue & expenditures, and funded capital outlay.

Following the briefing, Council consensus was for staff to find options to reduce the proposed FY 2001 expenditures of $54,198,380 that would have to be funded at the tax rate of 60.03 cents. Council stated the proposed increase of 1.88 cents to the property tax rate would be considered in order to fund the voter approved $5 million in bonds but directed staff to look at ways to cut the additional proposed 1.94 cents for day to day operations. Council voiced concerns for homeowners facing increased property tax values and possibly higher water bills.

Mr. McDaniel stated the proposed budget is his recommendation on what is best to operate the City. Mr. McDaniel further stated what is brought back as directed by the Council will be options that may include such things as a reduced employee compensation package or the elimination of services.

Councilman Carrillo requested information on how other cities distribute the hotel/motel tax.

Mayor Barr requested information concerning reinstating the funeral escort service and asked Council to plan on staying until 6:00 p.m. at the budget session Monday, July 17^th.

There being no further business, the meeting adjourned at 5:05 p.m.

Jo Moore, City Secretary

Grady Barr, Mayor

The City Council of the City of Abilene, Texas, met in budget worksession at 1:00 p.m. on July 17, 2000, in the Basement Conference Room of City Hall. Mayor Grady Barr was present and presiding with Councilmen Norm Archibald, Kris Southward, Victor Carrillo, Rob Beckham, Versie L. Brown, Jr., and Councilwoman Kay Alexander. Also present were City Manager Roy McDaniel, Assistant City Manager Michael Morrison, Director of Finance David M. Wright, City Attorney Sharon Hicks, City Secretary Jo Moore, and various other members of staff.

Mayor Barr called the worksession to order.

Councilman Brown gave the invocation.

City Manager Roy McDaniel distributed and reviewed information requested by Council on Friday, including the Hotel/Motel tax comparison of Abilene to nine other cities.

Police Chief Melvin Martin briefed the Council on the funeral escort service, noting that funeral home directors wanted to use off duty officers. Chief Martin stated the current arrangement frees up the traffic division to work traffic, and that escorts are not required for funerals.

Mr. McDaniel stated that on Friday staff was directed to find a way to balance the budget without the proposed 1.94-cent tax increase. Mr. McDaniel then distributed and reviewed various proposals including looking at retaining current vacancies versus additional layoffs. In addition, the proposed 50-cent per month refuse increase was being dropped based on Friday's discussion. Positions and services being considered in the reduction include: land technician, traffic engineer, landscape architect, management assistants, fingerprint analysis contract, new positions in the technology area - help desk, Microsystems technician, and temporary clerk, which won't be filled; Keep Abilene Beautiful coordinator (restructure possible), survey party crew chief, assistant director in Administrative Services, engineer, custodian for the Sandy Street building, eliminate animal control division being open after 5p.m., and move 2 Sears clinic employees to the main office to absorb duties.

Director of Administrative Services Kathy Merrill addressed employee pay issues, including the purpose for adjusting the pay plan. Ms. Merrill noted the difficulty in filling positions due to the low salaries not being able to compete with the job market. Abilene's turnover rate is 13.14%, and was 9.86% last year and will be 18% by the end of September if the current trend continues.

Ms. Merrill stated legislation is stalled concerning the minimum wage, but it will probably be increased to $6.15 per hour. The City of Dallas is proposing a $10.00 per hour minimum wage. Council noted a two-year phase in is expected for the minimum wage (first year $5.70 per hour, then $6.15 per hour). Ms. Merrill addressed the large number of retirements Abilene will soon be faced with, and stated we don't want to lose our existing talent; if we can't recruit, we need to train the employees we have. Enhancing the pay plan will be beneficial in retaining our employees and in competing with other entities and companies.

Council discussion included: the cost to retrain employees and what employees are required to reimburse if they leave City employment, average compensation for employees, number of minimum wage employees, what the competition in Abilene is, how time consuming it is to train new employees, changing retirement for new employees by requiring less retirement contribution match but pay more in salaries, paying more in salaries but pay fewer employees, and comparison of the city plan to private industry. Mr. McDaniel stated we're losing employees to businesses such as HEB and McDonalds.

Ms. Merrill reviewed the City's retirement plan, Texas Municipal Retirement System (TMRS), noting it is a 2 to 1 matching contribution (City 14% - Employees 7%), and that all employees are members of TMRS, except firefighters, who have a separate plan.

Mr. McDaniel briefed the Council on the proposed pay ranges, control point, and performance match, and noted the proposal is to increase all minimums within the pay ranges.

The Council recessed at 2:50 p.m. and reconvened at 3:05 p.m.

Mr. McDaniel briefed the Council on the current and suggested refuse barrel program.

Further Council discussion included considering a 25-50 cent fee increase for residential refuse rates to fund the barrel replacement program and moving $100,000 from the equipment replacement fund for other budgetary needs which would be put back into the fund if a budget surplus exists at the year end.

Mr. McDaniel explained the self-insurance fund current deductibles and noted employee insurance has gone up the last 3 years.

Assistant City Manager Michael Morrison briefed the Council on the proposal for the remodeling of City Hall to include the following stages:

1^st - basement asbestos abatement, demolition, heating & air conditioning/EOC

2^nd - finish out basement and move computer services to basement 3^rd - first and second floor office changes

Mr. McDaniel reminded Council that although the bonds were approved to build the EOC, there was no money allocated to equip the EOC.

At the conclusion of Council's discussion and direction concerning leaving various current job vacancies vacant, increasing residential refuse rates and some rate changes for commercial users, and increasing minimum wage to $6.15 per hour instead of the proposed $6.50 per hour, the proposed budget reflected a balance of $102,270.

Council directed staff to bring a list of actual needs to the July 18 budget worksession for use of the $102,270, with some noting their being philosophically opposed to just spending the funds because they're available.

Council requested a copy of the revised Certificates of Obligation projects stating citizens were critical of the Certificates of Obligations due to the City never retiring debt.

Mayor Barr noted Council would go into executive session following tomorrow's budget worksession.

There being no further business, the meeting adjourned at 5:17 p.m.

Jo Moore, City Secretary

Grady Barr, Mayor

The City Council of the City of Abilene, Texas, met in budget worksession at 1:00 p.m. on July 18, 2000, in the Basement Conference Room of City Hall. Mayor Grady Barr was present and presiding with Councilmen Norm Archibald, Kris Southward, Victor Carrillo, Rob Beckham, Versie L. Brown, Jr., and Councilwoman Kay Alexander. Also present were City Manager Roy McDaniel, Assistant City Manager Michael Morrison, Director of Finance David M. Wright, City Attorney Sharon Hicks, City Secretary Jo Moore, and various other members of staff.

Mayor Barr called the worksession to order.

Councilman Carrillo gave the invocation.

Assistant City Manager Michael Morrison briefed the Council on the proposed basement renovation. Mr. Morrison stated there are four phases to the project.

Costs are broken down as follows:

Phase I

1. $750,000 basement renovations. Asbestos abatement, demolition using prison labor, heating and air conditioning in place. EOC physical structure completed. Equipping the EOC will be a separate cost.

Cypress Plaza renovation.

2. $300,000 - $400,000, adequate restrooms and a drive up lane to receive water bill payments will be needed.

Phase 2, spring of 2002

Phase 3

Phase 4, 2003

Mr. Morrison noted the firm of Tittle Luther Partnerships prepared the space allocation plan and estimate on the Cypress Plaza Bldg. Funding for the project is proposed as follows:

Phase 1 - $750,000 ($200,000 from EOC bond sale)

$400,000 from COs; $150,000 from Facility Improvement Fund (preliminary design work).

Phases 2, 3, & 4 to finish storage area in basement from Certificates of Obligation (COs).

Mr. Morrison further noted that this plan allows us to stop at certain points if necessary.

Mr. Wright distributed and briefed the Council on bond elections and how debt works, the Abilene Improvement & Maintenance System, the history of CO Projects which also reflected the equivalency tax rate.

Council and staff discussion included the pros and cons of CO debt versus bond election debt, public awareness of the CO process and purpose and previous bond election results.

Council requested a presentation be made at a future Council meeting concerning the use of City dollars by the Abilene Convention & Visitors Bureau and the Arts.

Mr. McDaniel distributed a General Fund Summary of Revenue & Expenditures resulting from the July 17 budget session, which includes putting the Assistant Director of Administrative Services and the help desk employee back in the budget. Mr. McDaniel requested Council leave the $88,000 balance in the budget and allow him to review use of these funds, stating he would bring a final report at the meeting for the 2^nd reading of the Budget approval Ordinance.

Mr. McDaniel stated he would also look at funding the KAB coordinator through the water department budget and he will be evaluating the engineer position and the custodian vacancy.

Mr. McDaniel then distributed the General Fund Proposed 2000-2001 Budget and the resulting 2000-2001 Tax Rates as follows:

TAX RATES

2000-2001

FY 2000 General Fund 43.81 FY 2001 General Fund 43.81

FY 2000 Debt Service 12.40 FY 2001 Debt Service 14.28

TOTAL TAX 56.21 TOTAL TAX 58.09

It was noted that changes to the Texas Municipal Retiremen