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HomeMy WebLinkAbout2013-09-17 - Special City CouncilMINUTES OF SPECIAL COUNCIL MEETING City of Stephenville - City Council Tuesday, September 17, 2013, 5:30 P.M. The City Council of the City of Stephenville, Texas, convened on September 17, 2013, at 5:30 p.m., in the Council Chambers at City Hall, 298 West Washington Street, for the purpose of a Special Council Meeting, with the meeting being open to the public and notice of said meeting, giving the date, time, place and subject thereof, having been posted as prescribed by Chapter 551, Government Code, Vernon's Texas Codes Annotated, with the following members present, to wit: Mayor Jerry K. Weldon li Council members Casey Hogan Malcolm L. Cross Doug Svien Russ McDanel Brady Pendleton Martha Taylor Alan Nix Scott Evans Others Attending Mark A. Kaiser, City Administrator Randy Thomas, City Attorney Cindy L. Stafford, City Secretary I. Call to Order. The meeting of the Stephenville City Council was called to order at 5:30 p.m. on Tuesday, September 17, 2013, by Mayor Weldon. Mayor Weldon specifically welcomed former mayors Nancy Hunter, Larry Hammett, and Don Jones, as well as former State Senator Bobby Glasgow. 11. Consider Approval of Ordinance No. 2013-16 Adopting the Tax Rate for 2013 Mayor Weldon allowed comments from the audience. The following persons spoke concerning the proposed tax rate: Charon Zachary, 649 East Long, Stephenville. Fredie Goble, 413 Bluebonnet, Stephenville. Mark Wallace, 1402 North Dale, Stephenville. Matt Miller, 936 PR 897, Stephenville. Lori Thomas, 30489 State Highway 6, Stephenville. Hannah Dowell, 1090 West Elm, Stephenville. Larry Hammett, 101B Willow Lane, Stephenville. Special Council Meeting September 17, 2013 Stephenville City Council - MOTION by Russ McDanel, second by Casey Hogan, to adopt a tax rate for 2013 at 48.50. There was discussion bythe council members, and Council Member McDanel requested his comments to be made a part of the minutes. His comments are attached. MOTION FAILED by the following vote: Ayes: Council members Hogan, Svien, McDanel, and Mayor Weldon. Noes: Council members Cross, Pendleton, Nix, Taylor, and Evans. MOTION by Scott Evans, second by Martha Taylor, to adopt Ordinance No. 2013-16, adopting a tax rate for 2013 at 49.5�. MOTION CARRIED by the following vote: Ayes: Council members Cross, Pendleton, Nix, Taylor, and Evans. Noes: Council members Hogan, Svien, McDanel, and Mayor Weldon. Ill. Consider Approval of Ordinance No. 2013-17 Providing Budget Amendments for FY2012/2013 MOTION by Doug Svien, second by Scott Evans, to adopt Ordinance No. 2013-17. MOTION CARRIED by unanimous vote. IV. Adjourn MOTION by Alan Nix, second by Martha Taylor, to adjourn the meeting. MOTION CARRIED at 7:30 p.m. aLA�.Wa" Jerl K. W I on II, Mayor ATTEST: Cindy L. S r , City Secr Special Council Meeting September 17, 2013 Stephenville City Council Comments made by Council Member Russ McDanel September 17, 2013 "I would like to share a quote with you from Ronald Reagan who said, 'Government's view of the economy can be summed up in a few short phrases —if it moves, tax it; if it keeps moving, regulate it, and if it stops moving, subsidize it.' "We had 130 employees and the tax rate was .435 cents in FY08/09, when I first came to council. The debate tonight and vote will be to hold the rate at .485 cents and not increase taxes on all citizens or increase it to .495, which is an increase of 13.8% since May 2008. "In 2008 1 ran for an open seat on this council. To learn more about the core function of government — Public Safety-1 went twice on 'citizen ride alongs' with police patrol officers. I wanted to see for myself the ordeals the officers face. I learned much through observation and believe these experiences have made me a better council member. I also discovered their pay scale was too low compared to what other towns paid their officers. My first budget vote after being elected was September 2, 2008 and I supported a budget amendment to pay the police officers $135,000 more, in addition to the $262,000 already in the budget for general pay increases to all city employees. The minutes of that September 2, 2008 meeting are on the city website for anyone to look up. Three of us voted FOR the amendment, but not having a majority, it failed. I tell you this to show that my record of being a strong supporter of Public Safety has been consistent since my election. After a few years, my goal of becoming chairman of the Public Health and Safety Committee was achieved. The request from former Police Chief Halsell and current Chief Bridges on the committee's agendas have received favorable recommendations and then approval of the full council. I applaud all the members of the Public Health and Safety Committee for their dedication. The only areas that have not received approval have been due to budgetary restraints. The new budget we ratified two weeks ago includes the much -needed four full-time dispatchers and proper funding for their training ($6,000). "Several years ago, council considered a proposal to build a new fire station with a price tag of about $5 million; we wisely chose to wait. Our new fire station on the Northwest Loop will soon be in operation at a cost of $2.5 million; a Huge savings to the city and all the taxpayers! We (council and staff) are making a positive impact for all the people in the community. Last week, one council member said "Y'all were treated unfairly" referring to a majority vote of the council to balance the budget without increasing taxes on all property owners in the city. This was a 'compromise budget amendment' that held the tax rate the same as last year's by deferring approximately $116,666 of a proposed ($250,000) quarter of a million budget for increased pay for our employees. There is still approximately $133,333 in the approved budget! "This is my sixth budget since elected, approximately $780,333 has been budgeted for all employee pay raises. That is an average of $130,055 every year. Is that enough to be 'competitive'? Probably not, but we are moving in the right direction. Do we have an 'employee turnover' problem here? I don't believe the monthly reports we receive show that we do. Is higher employee salaries one of our priorities? YES it is! But, as with all items in the budget, our commitment must be balanced with the impact of any additional tax burdens on all our citizens; we have to treat them fairly also and determine how higher taxes will affect our local economy. Russ McDanel Comments September 17, 2013—Page 1 "From 2005 to 2008, when property values went up dramatically, the tax rate was lowered each year (pg. 2 budget), the very first page of our Budget book shows that with another tax increase; 'the budget will raise more total property tax by last year's budget by 6.08% ($278,992) and of that amount, $75,540 is tax revenue from new property added to the tax roll this year.' The worksheet we were given during budget work sessions dated August 6, 2013 also shows on the bottom line, #11 that the percentage tax increase without new growth is 4.92%. 1 have seen no staff provided documents that show anything lower. On page 25 of our current budget FY 12/13 it shows reserve funding of $754,876. This year in the new budget on page 26, it shows reserve funding of approximately $480,000 after the amendment. Reserves are 'excess revenues over expenditures'. I don't see this to be an issue. The best way to increase revenues for the city is to grow the tax roll, not the tax rate! Last week you heard that for the last 16 months, much emphasis and energy have been invested in economic development efforts. Yes! That's true, 'Economic Development" is also one of our major priorities. On page 5 of the new budget it shows 'Unfunded Projects' and sadly three of the items are key to helping us grow the community at a rate above the 2% growth we see now. Tax Increment Financing, a Thoroughfare Plan (future streets) and Annexation Sour land use plan) are unfunded. Several of us feel these items are significant tools the city can utilize successfully to promote growth and increase city revenues both through new property taxes and sales taxes. The cost of these three unfunded tools is only $150,000 total. So in addition to our priority of increased pay for employees, these economic tools are not being fully funded either. "You also heard last week that the numbers on this quarter of sales tax and our revenue from those sales is running below projections. Do you believe raising taxes on all the citizens and businesses will help turn that around? Ronald Reagan cut taxes to improve the economy! Council member Casey Hogan correctly stated last week that 'raising taxes will kill the economy'. Mr. Hogan also said, 'We need to be more business friendly' and 'We don't even have a point person for new business prospects to go to first.' "Dr. Cross, our Mayor Pro-Tem stressed last week the relationship of cutting expenditures as necessary in the retrenchment of finances. Dr. Cross has been involved in more city budgets than the rest of us on council, his words to this council carry wisdom and experience. Thank you, sir, for voting for the budget amendment that holds the line on the tax rate for all our citizens; and thank you for seeing that at mid- term budget we can restore the 1.4% in wage increases that we all want to provide. 'We have heard from small business owners asking us not to raise their taxes, they provide jobs in the community and some are struggling to make a living. They cannot afford a higher tax bill. Our citizens and business owners are already facing increases of 3% to 7 Y2% on their future water and sewer bills, as well as a school tax increase of approximately 2%. Let's not treat those citizens 'unfairly' either! Businesses closing their doors, cost people their jobs and cost the city in lost revenues also; they tighten their belts in times like this, we should too. "In closing, I'd like to share some of what I see on our streets as I deliver the mail; the realities of the families that are struggling just to get by, day to day. I frequently pick up applications addressed to the 'Health and Human Services Commission' asking for help. I see checks from 'Catholic Charities' in Fort Worth arriving while the people are outside waiting for their mail. They tell me they are headed to the bank and then to the grocery store. I see people walk to the convenience store to buy groceries because they have no car. I've seen two empty houses with foreclosure notices taped in the windows in the last six months (one on Pecan Street and one on Stephen Street). I see garage sales in families front yards, no permit displayed and there more often than allowed; selling toys and clothes the children have outgrown. I asked what they were going to spend their garage sale money on, their reply —money for Russ McDanel Comments September 17, 2013—Page 2 food, bills, and gas to get to work and back. I see the faces of people signing certified letters for bills they cannot pay. An elderly gentleman on North Belknap signed for a letter from City Code Enforcement one day because his yard went unmowed. He told me he was diabetic, didn't own a lawnmower and was too poor to pay to have it cut. I saw the hopelessness on his face and felt guilty for bringing the letter. His home was wrapped outside with a material to keep out the bad weather, a dead tree resting against his roof. Hee owns this modest home and he pays taxes. Let's be fair to him also. I know a woman who lives on Frey Street. She lost her husband in a tragic accident at a local railroad crossing. The last I spoke with her, she was looking for a job. She used to waitress for years, but her health won't allow her to be on her feet all day any more. She owns her small home and pays taxes too. Let's be fair to her. "I could go on and on. We as council members represent ALL the people. Let's stand firm on the balanced budget we have ratified and vote YES on the motion to keep the tax rate unchanged and treat all our citizens fairly also! Thank you for listening. Russ McDanef Comments September 17, 2013—Page 3