City Council Special Meeting

August 7, 2012 The Bastrop City Council met in Special Workshop Meeting on Tuesday, August 7, 2012 at 6:15 p.m. at the Bastrop City Hall Council Chambers, 1311 Chestnut Street, Bastrop, Texas. Members present were Mayor Terry Orr and Council Members Joe Beal, Ken Kesselus, Dock Jackson and Kay Garcia McAnally. 1. CALL TO ORDER At 6:15 p.m., Mayor Terry Orr called the meeting to order with all members present, with the exception of Kay Garcia McAnally who arrived at 7:40 p.m. and Willie DeLaRosa who was absent because he was ill. 2. EXECUTIVE SESSION – THE BASTROP CITY COUNCIL WILL MEET IN A CLOSED/EXECUTIVE SESSION PURSUANT TO THE TEXAS GOVERNMENT CODE, CHAPTER 551, TO DISCUSS THE FOLLOWING: A. SECTION 551.071(1)(A) AND SECTION 551.071(2) – CONSULTATIONS WITH ATTORNEY: (1) THREATENED AND/OR CONTEMPLATED LITIGATION, AND (2) MATTERS UPON WHICH THE ATTORNEY HAS A DUTY AND/OR RESPONSIBILITY TO REPORT TO THE GOVERNMENTAL BODY. At 6:17 p.m., Mayor Orr convened the Bastrop City Council into a closed/executive session pursuant to the Texas Government Code, Chapter 551, to discuss the following: A. Section 551.071(1)(A) and Section 551.071(2) – Consultations with Attorney: (1) Threatened and/or contemplated litigation, and (2) Matters upon which the attorney has a duty and/or responsibility to report to the governmental body. 3. THE BASTROP CITY COUNCIL WILL ADJOURN EXECUTIVE SESSION AND RECONVENE INTO SPECIAL SESSION TO TAKE ANY NECESSARY ACTION(S). At 7:32 p.m., Mayor Orr reconvened the Bastrop City Council into Special Session to take any necessary action(s). No action was taken. 4. WORKSHOP SESSION – THE BASTROP CITY COUNCIL WILL CONVENE INTO A WORKSHOP SESSION TO DISCUSS: A. 2012-2013 BUDGET – A REVIEW AND DISCUSSION WITH THE CITY MANAGER REGARDING FISCAL YEAR 2013 BUDGET FOR THE CITY OF BASTROP. At 7:33 p.m., Mayor Orr convened the Bastrop City Council into a workshop session to discuss:  A. 2012-2013 Budget – A review and discussion with the City Manager regarding Fiscal Year 2013 Budget for the City of Bastrop. City Manager, Mike Talbot called the Council’s attention to his revised Memo dated August 7, 2012 regarding the Summary of the General Fund Proposed Fiscal Year 2013 Annual Operating Budget. Mr. Talbot stated the City had received the Certified Tax Roll and according to Council’s direction he had increased the sales tax projection for 2013. Mr. Talbot stated this gave an additional $50,000 revenue to work with. Mr. Talbot stated he had placed an additional $10,000 in the Contingency Fund, an additional $5,000 in Salary Adjustments, an additional $5,000 in the hiring of an Engineer and the rest at a few other salary adjustment places. Mr. Talbot stated the revised Memo states that the proposed Fiscal Year General Fund Operating Budget is currently projected to start Fiscal Year 2013 with a fund balance of $2,308,337 and is projected to generate $8,331,528 in revenues, for a total of funds available for Fiscal Year 2013 in the amount of $10,639,865. Mr. Talbot stated the proposed Fiscal Year 2013 General Fund Operating Budget expenditures that are currently requested/shown equal the amount of $8,510,595 and this reflects that amounts being requested for expenditures actually reduce the projected General Fund Operating Balance, for the end of Fiscal Year 2012 from $2,308,337 down to $2,129,270. Mr. Talbot stated this may alternatively be expressed to mean that the City will be using $179,067 of the operating fund balance to balance the preliminary, proposed Fiscal Year 2013 General Fund Operating Budget. Mr. Talbot stated the projected amount of sales tax collection for Fiscal Year 2013 is $2,952,100 or 35.4% of the total revenues that will be accumulated by the City in Fiscal Year 2013 and applied to the General Fund. Mr. Talbot stated the Bastrop County Appraisal District went through a property re-evaluation process in 2012 as a result of the devastating fire of 2011 and this reflects a “Total Assessed Valuation of $635,808,461” projected for Fiscal Year 2013. Mr. Talbot stated the Council had stated they did not want to have an increase in taxes this year. Mr. Talbot stated he is proposing a tax rate of $0.58400 for Fiscal Year 2013 which represents no increase in the City’s proposed tax rate and the allocation if as follows: The I & S portion of the tax rate is proposed to be $0.2336 assuming a 97% collection rate and the M & O portion is proposed to be $0.3504 assuming a 97% collection rate. Mayor Orr stated he had heard a lot of the Council say they did not want to raise taxes, and that is fair enough, but the truth is that the City experiences inflation just like everybody else does and as long as he has been on the Council taxes have not been raised. Mayor Orr stated he wanted to be on record stating that come next year this time, he is going to raise the subject of raising operating expenditures because of inflation. Mayor Orr stated the Council has strapped the City Manager and City Departments four years in a row and they have done a fantastic job of doing more with less. Mayor Orr stated the Council needs to acknowledge that. Discussion was held among Council and Mr. Talbot regarding the General Fund proposed 2013 budget. Mr. Talbot called the Council’s attention to his Memo distributed regarding the Preliminary Summary of the Water and Wastewater Fund Proposed for Fiscal Year 2013 Annual Operating Budget as of August 7, 2012. Mr. Talbot reviewed the Memo which included water projects and wastewater projects. Mr. Talbot stated the proposed Water and Wastewater Operations expenditures are projected to be $3,409,840. Mr. Talbot stated the proposed budget anticipates generating revenues of $3,934,970. Discussion was held among Council and Mr. Talbot regarding the Water & Wastewater proposed 2013 budget. Mr. Talbot called the Council’s attention to the Summary of the Hotel/Motel Tax (HOT) Fund Proposed Budget for Fiscal Year 2013. Mr. Talbot stated the projected HOT fund balance, at the beginning of Fiscal Year 2013, is estimated to be $1,956,234 and the projected HOT revenues to be collected are anticipated to be $2,315,000. Mr. Talbot stated the total HOT resources available for Fiscal Year 2013 is projected to be $4,271,231. Mr. Talbot reviewed the major expenditures from the City’s HOT funds. Mr. Talbot stated that based upon the projected revenues to be collected, less the proposed expenditures, it is anticipated that the HOT Fund will end Fiscal Year 2013 with an ending fund balance of $1,956,234. Mr. Talbot called the Council’s attention to the Summary of the Convention Center Proposed Budget for Fiscal Year 2013. Mr. Talbot stated the Convention Exhibition Center is proposed to have a beginning fund balance for Fiscal Year 2013 of $947,634. Mr. Talbot reviewed the anticipated revenues and proposed expenditures. Mr. Talbot called the Council’s attention to the Main Street Program Proposed Budget for Fiscal Year 2013. Mr. Talbot reviewed the anticipated revenues and proposed expenditures. Mayor Orr thanked the City Manager and staff for all the hard work in preparing a proposed budget. 5. THE BASTROP CITY COUNCIL WILL ADJOURN WORKSHOP SESSION AND RECONVENE INTO SPECIAL SESSION TO TAKE ANY NECESSARY ACTION(S). At 8:30 p.m., the Bastrop City Council adjourned workshop session and reconvened into special session to take any necessary action(s). No action was taken. City Manager, Mike Talbot stated the First Reading of the Ordinances to adopt the Tax Rate and the Fiscal Year 2013 Budget will be posted for the September 11, 2012 City Council Meeting. 6. EXECUTIVE SESION – THE BASTROP CITY COUNCIL WILL MEET IN A CLOSED/EXECUTIVE SESSION PURSUANT TO THE TEXAS GOVERNMENT CODE, CHAPTER 551.086 (CERTAIN PUBLIC POWER UTILITIES: COMPETITIVE MATTERS) TO DISCUSS THE FOLLOWING: A. CERTAIN PUBLIC POWER UTILITIES: COMPETITIVE MATTERS – BASTROP POWER AND LIGHT BUDGET 2012-2013. At 8:34 p.m., Mayor Orr convened the Bastrop City Council into a closed/executive session pursuant to the Texas Government Code, Chapter 551.086 (Certain Public Power Utilities: Competitive Matters) to discuss the following: A. Certain Public Power Utilities: Competitive Matters – Bastrop Power and Light Budget 2012-2013. 7. THE BASTROP CITY COUNCIL WILL ADJOURN EXECUTIVE SESSION AND RECONVENE INTO SPECIAL SESSION TO TAKE ANY NECESSARY ACTION(S). At 9:15 p.m., Mayor Orr reconvened the Bastrop City Council into special session to take any necessary action(s). No action was taken. 8. ADJOURN At 9:17 p.m., Joe Beal moved to adjourn. Seconded by Ken Kesselus and carried unanimously. APPROVED: ATTEST: _________________________ ___________________________ Terry Orr, Mayor Teresa Valdez, City Secretary