BUDGET WORKSESSION

JULY 25, 2001

               CITY COUNCIL OF THE CITY OF ABILENE, TEXAS

  BASEMENT CONFERENCE ROOM

          The City Council of the City of Abilene, Texas, met in budget worksession at 1:00 p.m. on July 25, 2001, 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, Jimmy McNeil, and Councilwoman Kay Alexander.  Also present were City Manager Roy McDaniel, Assistant City Manager Michael Morrison, Director of Finance David M. Wright, Assistant Director of Finance Mindy Whisenhunt, City Attorney Sharon Hicks, City Secretary Jo Moore, and various other members of staff.  

          Mayor Barr called the meeting to order. 

          Councilman Norm Archibald gave the invocation.

          Mayor Barr reviewed the week’s schedule and the day’s agenda, stating the Council and staff would take a short recess around 2:30 p.m.

City Manager Roy McDaniel introduced Judy Elmore, Human Resources Program Manager, who Mr. McDaniel stated is present to address any questions concerning the salary surveys and related issues.

          David Wright, Director of Finance, in reviewing the expenditures proposed in the General Fund budget, noted significant changes in Programs/Projects as outlined on page VIII of the City Manager’s budget transmittal letter.

Assistant City Manager Michael Morrison distributed and gave an overview of the budget response to the Mayor’s Community Development Task Force recommendations.  Mr. Morrison stated Council has not been presented a final report, but it will be available soon.

          Mr. McDaniel reviewed personnel issues, noting a pay review process for police was approved last year, now fire & non-civil service has been included.

          Mr. McDaniel further reviewed the proposed pay plan adjustment as outlined on page VI of the budget transmittal letter.  Mr. McDaniel stated that although the Legislature had passed an amendment that allows cities to adopt 5 year vesting, his recommendation is that Abilene not adopt the 5-year vesting.  Mr. McDaniel further stated an Ordinance will come to Council after October 1 rejecting the 5-year vesting.

          Mr. McDaniel explained the pay-for-performance process, addressed the pay plan range adjustments including the recommended 3% across-the-board for ranges 15 through 59. Council requested staff provide a list of the positions that will be impacted in pay ranges 60 to 72. 

Mr. Wright reviewed and noted corrections to the General Special Services Division budget summary.  Further review of the General Special Services Division budget summary was made with Mr. McDaniel and City Attorney Sharon Hicks explaining the utility rate cases line item.

          Mr. Wright handed out a 10-year history of the Hotel/Motel tax and briefed the Council on the tax, allocation to the Chamber of Commerce, and discussed changes to the allocation Council could implement.

          Mr. McDaniel noted that the City Council received the budget for the Abilene Cultural Affairs Council and Abilene Convention and Visitors Bureau earlier.

          Mr. Wright reviewed the FY 2002 Financing Plan as outlined on page VIII of the City Manager’s budget transmittal letter.  Mr. Wright stated the City’s certified tax roll is $8 million more than previously estimated and that any tax rate above 61.92 cents per $100 valuation would be subject to a rollback election.  Of the currently projected property tax of 62.48 cents, 47.69 would go to the general fund budget and 14.79 cents to the City’s debt retirement fund.  Mr. Wright also addressed a fuel savings cost in next year’s budget of $50,000.

          Mr. Wright reviewed the General Fund Summary of Revenue & Expenditures, 2001-2002 Budget.

          Mr. McDaniel reviewed the General Fund unfunded requests 2001-2002 Proposed Budget, outlining the high priority and medium/low priority items. 

          Director of Community Development Richard Gertson distributed The Brenton Report and his recommendations for improving the City’s Development Services.  Council and staff discussed the fate of the Task Force recommendations if funding is not approved, the Development Services Center, the unfunded requests for Community Development under the high priority items and the fact that all employees need to serve as advocates for the City.

          Council recessed for a break at 2:50 p.m. and reconvened at 3:00 p.m.

          Mr. Gertson reviewed the CDBG summary of projects and addressed the reconsideration of the Meals on Wheels request.

          Mr. Wright reviewed the HOME Investment Partnership Program Summary of Projects and the Housing, Senior Citizens, Health Services, Seized, and Water & Sewer Operating funds. 

Council & staff discussed the brush chipper upgrade under the list of planned replacements in the Equipment Replacement fund.

Mr. Wright reviewed the Central Warehouse Fund Statement of Revenues & Expenditures, Facilities Improvement Fund Statement of Revenues & Expenditures, Self-Insurance Fund Statement of Revenues & Expenditures, and the Self-Insurance Fund Unfunded requests and noted the premium on employees insurance will be increased in January 2002.

          Council and staff discussed the Self-Insurance Fund Unfunded requests with Council expressing interest in the $10,000 Actuarial Reserve Funding Analysis being budgeted and other funding sources being researched for the $17,480 automated external defibrillators.

          Mr. Wright then reviewed the Technology fund Summary of Revenues & Expenditures and recommended projects, unfunded requests; and DCOA Statement of Revenues & Expenditures.

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

_________________________                  ___________________________

Jo Moore                                                    Grady Barr

City Secretary                                                Mayor

BUDGET WORKSESSION

JULY 26, 2001

               CITY COUNCIL OF THE CITY OF ABILENE, TEXAS,

  BASEMENT CONFERENCE ROOM

          The City Council of the City of Abilene, Texas, met in budget worksession immediately following the City Council meeting on July 26, 2001, 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, Jimmy McNeil, and Councilwoman Kay Alexander.  Also present were City Manager Roy McDaniel, Assistant City Manager Michael Morrison, Director of Finance David M. Wright, Assistant Director of Finance Mindy Whisenhunt, City Attorney Sharon Hicks, City Secretary Jo Moore, and various other members of staff. 

          Mayor Barr called the worksession to order at 12:35 p.m.

          Mayor Barr stated Councilman Southward has prepared budget recommendations.  The recommendations were distributed for Council’s review.

          Mr. McDaniel distributed, per the Council’s request, a list of positions for pay ranges 60-72 reflecting the projected minimum, current minimum, current salary, projected salary, and percent increase.

          Following Council and staff discussion, Council recommended the following items be added to the budget:

Airport marketing manager $80,000+                        other funding sources <80,000>

Civic Center stacking chairs 23,380 +

Development Service Center 40,000+

Pneumatic roller streets 51,600+

Corporate communications officer 15,000+(net)          remaining 40,000 from other funding sources

Vehicle exhaust system shop 12,000+

          It was noted by adding an additional 50 cents on all refuse accounts revenue would be increased by $209,000. Additionally, Mr. Wright stated with the lower gasoline prices, the proposed budget could be reduced by $50,000 and due to a new law, the Municipal Court budget could be reduced by $20,000 for collection costs of overdue fines.  After the adjustments, approximately $41,000 would still be needed to balance the budget.  Council concluded by stating in order to balance the budget the City Manager is to find the approximate $41,000 in budget cuts, primarily from personnel costs.

          Councilman Beckham distributed information on and actions taken by the cities of Lubbock, Midland, Odessa, and Wichita Falls on budget issues.  Mr. Beckham stated looking at how other cities do things is not a very valuable process.  Mr. Beckham also distributed a 4 year perspective for the City of Abilene, a 1997-2001 Labor Force scale and excerpts from Mr. McDaniel’s budget letter concerning unemployment in Abilene compared to the statewide average from 1997 to 2001.  Mr. Beckham stated the workforce in the city has been declining, taxpayers are facing an even larger burden, and the purchasing power of our citizens has gone down significantly.  Mr. Beckham concluded by stating without budget cuts he won’t support the proposed budget.

          Mr. McDaniel stated the city organization is a service organization and is expected to provide more when the economy is bad, but these decisions have a long-range impact.  Mr. McDaniel further stated citizens can have what they want if they’re willing to pay for it and with the city having gone 10 years with a flat tax rate with a lot of services added, we should be at a 70-75 cents tax rate level. A 5-year plan is needed, and Mr. McDaniel cautioned that everything deferred this year will be back double next year, stating to retain employees they need to be paid a competitive salary.  Mr. McDaniel further stated this is one of the catch-up years, that about three years are needed to get to the 70 cents needed to support the level of service we want to provide.

          Councilman Southward stated to pass a $5 million budget increase on top of increases already in electric, gas, and water rates will impact the low and fixed income residents particularly hard.

          Mr. McDaniel distributed the City Council & City Secretary budgets to Council.

          Councilman Southward then reviewed his recommended budget cuts in the amount of $1,238,080.

          Mr. Wright explained the vehicle replacement program and that funding for Information Technology pays for operating costs and is not new project money.

          Mr. McDaniel reviewed the City Council and City Secretary budgets for comparison purposes in making cuts in all departments.

          Councilwoman Alexander made a motion to approve the first reading of the Ordinance approving the Revised 2000-2001 Budget and Proposed 2001-2002 Budget with an additional 50 cent increase to refuse collection and charges on all accounts to include funding for:

Airport marketing manager $80,000+                        other funding sources <80,000>

Civic Center stacking chairs 23,380 +

Development Service Center 40,000+

Pneumatic roller streets 51,600+

Corporate communications officer 15,000+(net)          remaining 40,000 from other funding sources

Vehicle exhaust system shop 12,000+

Reduce property tax revenue to 61.92 cents or $178,440.

Councilman Archibald seconded the motion and the motion carried.

          AYES:  Councilmen Archibald, McNeil, Councilwoman Alexander, and Mayor Barr.

          NAYS: Councilmen Southward, Carrillo, and Beckham.

          AN ORDINANCE APPROVING REVISED BUDGET FIGURES FOR FISCAL YEAR 2000-2001; APPROVING AND ADOPTING BUDGET FOR THE FISCAL YEAR OCTOBER 1, 2001, THROUGH SEPTEMBER 30, 2002, FOR THE CITY OF ABILENE; APPROPRIATING FUNDS; REPEALING ALL ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT HEREWITH; CALLING A PUBLIC HEARING.

            Councilman McNeil moved to approve the first reading of the Ordinance setting the 2001 Tax Levy at 61.92 cents.  Councilman Archibald seconded the motion and the motion carried.

          AYES:  Councilmen Archibald, McNeil, Councilwoman Alexander, and Mayor Barr.

          NAYS: Councilmen Southward, Carrillo, and Beckham.

          AN ORDINANCE OF THE CITY OF ABILENE, TEXAS, APPROVING THE ASSESSMENT ROLL FOR 2001, LEVYING AN AD VALOREM TAX FOR THE CITY OF ABILENE, TEXAS, FOR THE YEAR 2001; PROVIDING FOR THE ASSESSMENT AND COLLECTION THEREOF; REPEALING ALL ORDINANCES AND PARTS OF ORDINANCES IN CONFLICT HEREWITH; CALLING A PUBLIC HEARING; PROVIDING AN EFFECTIVE DATE.

            Councilman Archibald moved to approve the Resolution adopting the refuse fee schedule to be effective October 1, 2001.  Councilman McNeil seconded the motion and the motion carried.

          AYES:  Councilmen Archibald, McNeil, Councilwoman Alexander, and Mayor Barr.

          NAYS: Councilmen Southward, Carrillo, and Beckham.

          The Resolution will be numbered following final approval of the Budget Ordinance and is captioned as follows:

          A RESOLUTION OF THE CITY OF ABILENE, TEXAS REVISING THE SCHEDULE OF RATES AND CHARGES FOR REFUSE COLLECTION DIVISION.

          The following is the General Fund Summary of Revenue and Expenditures, 2001-2002 Budget as approved by Council:

          Mayor Barr thanked staff and Council for their work on the budget.

          Mr. McDaniel stated his appreciation to the Council and staff for their input in the preparation of the budget.

          There being no further business, the meeting was adjourned at 3:15 p.m.

          _________________________                 ___________________________

          Jo Moore                                                         Grady Barr

          City Secretary                                            Mayor