City Council

MINUTES OF THE CITY OF BRISTOL, TENNESSEE SPECIAL CITY COUNCIL MEETING June 18,2013 CALL TO ORDER: The City of Bristol, Tennessee City Council meeting was called to order by Mayor Joel Staton on Tuesday, June I8,2013, at7:00 p.m. in the City Hall Annex. ROLL CALL: Present: Mayor Joel Staton, Councilwoman Michelle Dolan, Councilwoman Margaret Feierabend, and Councilman David Shumaker. Others Present: City Manager Jeff Broughton, City Attorney Jack Hyder, City Recorder Tara Musick; and members of City Staff. Also present were Councilmembers-elect Chad Keen and Lea Powers. PUBLIC HEARING Ordinance l3-2 - An Ordinance to Adopt a Budget and Appropriate Funds for the Fiscal Year July 1, 2013 through June 3012014 City Manager Broughton reviewed this ordinance that will adopt a budget and appropriate funds for Fiscal Year July l, 2013 through June 30, 2014. City Manager Broughton explained that this budget totals $106,354,435, which is a decrease of $2,737,172, overall. This is a total decrease of 2.6 percent. The municipal budget totals $65,673,007, which is a decrease of $4,889,979, from the prior year. A number of changes have been made and are reflected. These changes include the litigation tax that will be levied on municipal court, a guest fee for non-citizens that use services at the Slater Center, and a modification to the monthly solid waste fee. The solid waste fee has not been modified in two years. The proposed tax increase within the budget is at 12 cents which is a decrease of 5 cents from the original recommendation. City Manager Broughton also explained that 2 cents of that increase will be dedicated to resurfacing of roadways. City Manager Broughton also explained that the tax increase is following the plan of a property tax increase every four years during a reappraisal year and baning any large projects or special circumstances this would not occur again for another four years. Mr. Richard Gordon, 101 Moruis Drive, addressed Council concerning the non-citizen senior fee at the Slater Center. Mr. Gordon questioned the budget of the parks and recreation department as well as the grant funding that he was under the impression that the Slater Center operated under. Mr. Gordon also expressed concern regarding the  Special City Council Meeting June 18,2013 Page2 of 5 amount of the fee. He stated that it seemed like a high fee and was not sure why it needed to be that high. He also posed the question of whether non property owning residents would be charged. In closing he asked Council to take a further look at the fees and why they were being assessed to see if anything could be done to lower them. Mr. Tom Hyball, Bristol, TN, addressed Council concerning some issues he felt were signs of a morality problem. One issue he noted concerned the recent bond refunding that he stated he felt was not properly disclosed or discussed. Mr. Hyball also stated concerns surrounding the closing of the Avoca Library Branch stating that the City needed to stop funding other immoral businesses and focus funding on things like the library. Mr. Hyball also noted that the City needed to fully utilize resources such as water to bring in more revenue. In closing Mr. Hyball told Council that he did not approve of their choices and as a citizen he was not okay with their decisions. Mr. David Roark, Mount Area Drive, addressed Council concerning the non-citizen senior fee at the Slater Center. Mr. Roark stated that he was not pleased with the newly levied fee and feels it is unfair to senior citizens. Mr. Roark stated that even though he does pay property taxes to the City he pays money in sales tax as well as utilities. Mr. Roark stated that he did not understand why the fee was raised from the originally proposed $60 to $120. He stated that $60 was far more reasonable for senior citizens who are on a limited income. In closing, Mr. Roark asked the Council to reconsider the fee and to consider the effects it could have on the Slater Center and the senior citizens. Ms. Maggie Hess, 245 McDowell, addressed Council concerning the non-citizen senior fee at the Slater Center. Ms. Hess noted that a sliding scale fee may be appropriate. She also addressed the Council concerning the sale of water resources that was mentioned by Mr. Hyball, asking council to never consider selling the City's water resources to outside sources. Ms. Doris Steele, Bluff City Resident, addressed Council concerning the non-citizen senior fee at the Slater Center. Ms. Steele stated that she was strongly against the fee and felt it to be unfair. Ms. Steele noted that this fee was particularly unfair to seniors who have been taxed and more than paid for this service over the course of time. She also stated that if the City needed more rnorley they should stop spending money they did not have and not tax citizens so much. In closing Ms. Steele asked the Council to reconsider this fee and the increase in taxes overall.  Special City Council Meeting June 18,2013 Page 3 of5 ORDINANCES AND RESOLUTIONS A. Second Reading of New Ordinances: Ordinance l3-2 - An Ordinance to Adopt a Budget and Appropriate Funds for the X'iscal Year July 1,20L3 through June 30,2014 City Manager Broughton reminded Council that this ordinance had been reviewed as part of the public hearing and therefore was no longer open to public comment. When asked for any Council questions for Staff Councilwoman Feierabend posed a question concerning the effects of the tax increase on a family with a $100,000 house that was answered by City Manager Broughton. When Council was asked for any further comment, Councilwoman Dolan addressed the Council and citizens. Councilwoman Dolan stated that the City government needed to look at the example the State of Tennessee was setting. She stated that the goals of our budget state that we should keep the tax rate stable, that department budgets should be continually reviewed, and that the government should reduce its dependency on property taxes. Councilwoman Dolan stated that the current administration had failed in reducing its dependency on property taxes and that she does not support the closing of the Avoca Library Branch or the defunding of non-profrt organizations. Councilwoman Feierabend then spoke stating that she was sorry for the Slater fee also and that we needed to look at the big picture and maybe look at other options for this with other members of the community. Councilwoman Feierabend stated that the City has a long history of responsible strong fiscal management and a very good process of setting goals and budgeting. She also noted that the City has done well with numerous frugal budgets as of late. Councilwoman Feierabend stated that she feels the City is moving in a positive direction and that to continue that we need to invest in our City and that means an increase in property taxes. Mr. Staton made a single note that only one Council member made reference to closing the Avoca Library Branch and defunding non-profits and that member was not in attendance. Councilwoman Feierabend moved to approve the Ordinance on second reading and Councilman Shumaker seconded. The motion passed on the following roll call vote: Councilman Shumaker, yes; Councilwoman Dolan, no; Councilwoman Feierabend, yes; and Mayor Staton, yes. B. Resolulions Resolution 13-68 - A Resolution Authorizing the Issuance of not to exceed $37,000,000 in Aggregate Principal Amount of Electric System Revenue Bonds, Series 2013 of the City of Bristol Tennessee; Making Provisions for the Issuance, Sale, and Payment of Said Bonds; Establishing the Terms Thereof and the Disposition of Proceeds Therefrom; Providing for the Collection and Disposition of  Special City Council Meeting June 18,2013 Page 4 of 5 Revenues from the Electric Power Distribution System of the Municipality and Making Provision for the Operation of Said System. City Manager Broughton reviewed this Resolution that would authorize the issuance of bonds not to exceed $37,000,000 in revenue bonds for the Electric System. This money is being used two ways. A portion of this bond would be used to fund capital needed by the electric system to total $14,000,000 while the other $23,000,000 will be used to refund the Series 2005 bonds. City Manager Broughton noted that this would be a fixed rate borrowing that would be done using a competitive sale. He also noted that this would not be a general debt of the City and would only be paid through the revenue of the Electric System. The only new debt will be that of the $14,000,000 and would be a savings measure for the refunding of the 2005 bonds. This refunding would not occur immediately so a more advantageous rate could be acquired, however the capital portion will continue. Councilman Shumaker stated that he had spoken to the board at the Electric System and that they have not seen this and would like to at least approve this as they have been the ones to procure bonds in the past. Based upon that, Councilman Shumaker made a motion to table the vote until the board could review or procure their own debt which Councilwoman Dolan seconded. City Manager Broughton noted that the Electric System Board does not have the ability to make the decision or procure their own bonds only the Council has that power. Mr. Broughton also noted that the Electric System Board wanted to use a negotiated sale which does not solicit the best rate for the City and the company they wanted to use has never been used by the City. He also noted that this contradicted the City's policy and that this refunding and new issuance needs to happen currently otherwise this would not be able to occur wfül 2014. Councilman Shumaker stated that the Electric System Board was unanimous in asking that this be held and that it be reviewed by the Board before passing. Mr. Broughton again noted that the only difference in what the Electric System is asking for and what is being proposed is the fact that the City is proposing a competitive sale rather than a negotiated sale as proposed by the Electric System. City Manager Broughton suggested that action be deferred rather than tabling the Resolution. Councilman Shumaker then withdrew the motion of tabling the resolution and then made a motion to defer action which Councilwoman Dolan seconded. The motion passed on the following roll call vote: Councilman Shumaker, yes; Councilwoman Dolan, yes; Councilwoman Feierabend, No; and Mayor Staton, yes.  Special City Council Meeting June 18,2013 Page 5 of 5 C. Proclamations A Proclamation in Appreciation of City Manager Broughton's Leadership A Proclamation was read by Councilman Shumaker, Councilwoman Dolan, Councilwoman Feierabend, and Mayor Staton in appreciation of City Manager Broughton and the leadership that he provided in his nine years of service at the City. This proclamation was presented to City Manager Broughton along with a plaque of appreciation. There being no further business, the meeting was adjourned at 8:08 p.m. Michelle Dolan, Mayor Tara E. Musick, City Recorder