City Council Special Called Budget Work Session

MEETING OF CITY COUNCIL FRISCO CITY HALL GEORGE A. PUREFOY MUNICIPAL CENTER COUNCIL CHAMBERS 6101 FRISCO SQUARE BLVD. FRISCO, TEXAS 75034 6:00 PM MONDAY, AUGUST 10, 2020 MINUTES For complete details on each item, please view a video of the meeting on the City of Frisco website. CALL TO ORDER Mayor Jeff Cheney called the meeting to order at 6:00 p.m. with a quorum present. 1. ROLL CALL Mayor Jeff Cheney Present Mayor Pro-Tem Will Sowell Present Deputy Mayor Pro-Tem Shona Huffman Present Council Member John Keating Present (arrived @ 6:01 p.m.) Council Member Bill Woodard Present Council Member Tim Nelson Absent Council Member Brian Livingston Present Representing Staff: George Purefoy, City Manager; Henry Hill, Deputy City Manager; Nell Lange, Assistant City Manager; Ben Brezina, Assistant City Manager; Kristi Morrow, City Secretary; Ryan Pittman, City Attorney; Department Directors, and other Staff members. Page 1 of 6 CLOSED SESSION 2. Recess into Closed Session in compliance with Section 551.001 et. seq. Texas Government Code, to wit; Council Member Bill Woodard moved to enter recess at 6:01 p.m. Mayor Pro- Tem Will Sowell seconded the motion. Passed Vote: 5 – 0 For: Mayor Pro-Tem Will Sowell, Deputy Mayor Pro-Tem Shona Huffman, Council Member John Keating, Council Member Bill Woodard, Council Member Brian Livingston Against: (None) A. Section 551.071. Meeting with City Attorney regarding a matter(s) in which the duty of the City Attorney under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas conflicts with the Open Meetings Act regarding: i. Receive legal advice regarding Exide Holdings, Inc. et. al, Case No. 20-11157 (CSS), pending in the U.S. Bankruptcy Court, District of Delaware. 3. Reconvene into Regular Session and take any action necessary as a result of the Closed Session. Council Member Brian Livingston moved to reconvene into Regular Session at 6:08 p.m. Council Member John Keating seconded the motion. Passed Vote: 5 – 0 For: Mayor Pro-Tem Will Sowell, Deputy Mayor Pro-Tem Shona Huffman, Council Member John Keating, Council Member Bill Woodard, Council Member Brian Livingston Against: (None) As a result of Closed Session, there was no action to take. CITIZEN INPUT (to begin approximately at 7:30 p.m.) No one wished to speak. REGULAR AGENDA 4. Presentation and Discussion of FY2021 City Manager's Annual Budget Page 2 of 6 Proposal Assistant Finance Director Jenny Hundt opened the meeting by reminding Council that the FY2021 Proposed Budget Draft is available for viewing online at the City’s website. (To request a copy of the FY2020 Proposed Budget Draft, please contact the City Secretary's Office.) Ms. Hundt then began a presentation (Exhibit A) providing Council with an overview of the Proposed FY2021 Annual Budget. She indicated that the goals and projects discussed in January’s Winter Work Session, including traffic, roads, medians, and downtown infrastructure, along with Council’s 2020 Vision and Top 10 Priorities provided the basis for the development of the Proposed FY2021 Annual Budget. She explained that other projects, like Grand Park and a Performing Arts Center, have been deferred due to economic unknowns. However, they remain on the horizon and are able to be adjusted as timing is appropriate. Ms. Hundt highlighted the following budget challenges:  COVID-19 – Global Pandemic  The Economy  86th Texas Legislature Senate Bill 2  Property Tax Values  Sales Tax Collections  Fund Balance Reserves Ms. Hundt then reviewed the projected revenue and expenditures for FY2021 as well as the status of each fund held by the City. She concluded by introducing Finance Controller Derrick Cotten. Mr. Cotten continued the presentation by reviewing the revenues, expenditures, and unassigned fund balances for the Community Development Corporation (CDC) and the Economic Development Corporation (EDC). Assistant Director of Finance Jenny Hundt announced further opportunities for Citizen Input regarding the Proposed Budget as follows: August 18: 1st Public Hearing regarding the Proposed Budget Stormwater Fee Discussion September 1: 2nd Public Hearing regarding the Proposed Budget September 15: Public Hearing regarding the Tax Rate Council vote on Tax Rate, Budget, and Fee Ordinance Page 3 of 6  Finance Director Anita Cothran opened the floor for questions. Mayor Pro-Tem Will Sowell updated Council with the perspective of the Budget and Audit Committee. Mayor Pro-Tem Sowell commented that because of the uncertainty of revenue, the committee will be reviewing the budget quarterly rather than waiting until mid-year. Council and City Staff then discussed the sale of bonds with respect to the Library and other projects that have been put on hold due to budget constraints. They also discussed tax rates as dictated by SB2. Staff was directed to conduct further research on the options allowed by the bill. Assistant City Manager Nell Lange stated the delay in the Library project may change the schedule of bond sales and other projects such as the Public Works expansion. 5. Consider and approve the No-New Tax Rate Calculation for the Fiscal Year 2021 - Tax Year 2020. (JH/Financial Services) Mayor Pro-Tem Will Sowell moved to approve the No-New Tax Rate Calculation for the Fiscal Year 2021 - Tax Year 2020. Council Member Bill Woodard seconded the motion. Passed Vote: 5 – 0 For: Mayor Pro-Tem Will Sowell, Deputy Mayor Pro-Tem Shona Huffman, Council Member John Keating, Council Member Bill Woodard, Council Member Brian Livingston Against: (None) 6. Consider and act upon Proposed Tax Rate and Recording Individual Vote. (Financial Services/JH) Mayor Pro-Tem Will Sowell moved to approve the Proposed Tax Rate and Recording Individual Vote. Mayor Pro-Tem Sowell noted this tax rate will raise more taxes for Maintenance and Operations than last year’s tax rate. He stated the tax rate will effectively be raised by .615% and will raise taxes for Maintenance and Operations on a $100,000 home by approximately $7.45. Council Member Bill Woodard seconded the motion. Passed Vote: 5 – 0 For: Mayor Pro-Tem Will Sowell, Deputy Mayor Pro-Tem Shona Huffman, Council Member John Keating, Council Member Bill Woodard, Council Member Brian Livingston Against: (None) Page 4 of 6 ADJOURN Mayor Pro-Tem Will Sowell moved to adjourn at 6:44 p.m. Council Member Bill Woodard seconded the motion. Passed Vote: 5 – 0 For: Mayor Pro-Tem Will Sowell, Deputy Mayor Pro-Tem Shona Huffman, Council Member John Keating, Council Member Bill Woodard, Council Member Brian Livingston Against: (None) Approved this 1st day of September 2020. __________________________ Jeff Cheney, Mayor ATTEST: __________________________ Kristi Morrow, City Secretary Please note these are preliminary results and are not official until approved at the next scheduled meeting. Approved/signed minutes are available at https://agenda.friscotexas.gov/OnBaseAgendaOnline/. Page 5 of 6 EXHIBIT A Page 6 of 6