City Council Meetings

MINUTES SPECIAL MEETING MINERAL WELLS CITY COUNCIL CITY HALL ANNEX July 31, 2018 - 6:00 pm Audio recordings of the City Council meetings are available on the City's website at mineralwellstx.gov City Councilrnernbers present were Mayor Christopher M. Perricone, Mayor Pro-Tern Tammy Underwood, Councilrnernbers Brian Shoemaker, Regan Johnson, Beth Watson and Doyle Light. Councilrnernber Jerrel Tomlin was absent. A quorum of City Councilrnernbers was present. Staff members present were City Manager Lance Howerton, Finance Director John Moran, Police Chief Dean Sullivan, Fire Chief Mike Pool, Public Works Director Bob Neal, and City Clerk Peggy Clifton. Mayor Perricone called the meeting to order. Councilrnernber Doyle Light led the invocation, and the Pledges of Allegiance to the U.S. and Texas flags were recited. Mr. Howerton presented to the Council and those present the City Manager's proposed 2018-2019 Annual Budget for the City of Mineral Wells. The separate funds discussed are as follows: General Fund Concerning revenues in the General Fund, we anticipate improvement in the upcoming fiscal year. Due to some positive movement in the local economy, sales tax is forecast to increase approximately $100,000 from the prior year to $3,050,000. As to ad valorern property tax value, total value for Fiscal Year 2019 is projected at $715 million, approximately $45 million dollars or 6.7% above the prior year. Given this, it is proposed that the M & 0 portion of the tax rate remain at $.60500. The City in November of 2017 approved General Obligation debt requiring the payment of debt service to underwrite various infrastructure improvements. It is calculated that a Debt Service (Interest and Sinking Fund) tax rate of $.05407644 is required, therefore making the overall proposed ad valorern tax rate $.65907644. The proposed M & 0 tax rate is $.016140 above the M & 0 Effective Tax Rate of $.5888600, but well below the Rollback Tax Rate of $.6977865. As the proposed tax rate is above the calculated Effective Rate, public hearings must be held prior to adoption. As to other revenues in the General Fund, it is projected that no major changes will occur beyond those of prior years. ll Page With respect to expenditures in the General Fund, much of the focus relates to personnel. Based upon the recommendation of the Committee appointed by the City Council, salary adjustments and the addition of staff positions are included for both the Fire/EMS and Police Departments. Foremost among these is the proposed addition of six (6) Firefighter/EMT positions which is to be funded at a level of 75% in the upcoming fiscal year through a SAFER grant. Significant salary upgrades and the addition of one (1) dispatch and two (2) patrol officer positions are also recommended in the Police Department. In addition to these upgrades directed at the Public Safety Departments, it is proposed that "step raises" be granted for all General Fund employees at a cost of $111,351. Also related to personnel expense, it appears that soliciting bids for our health insurance brokerage service has allowed us to realize a 10-12% premium savings across all funds approximating a total savings of $225,000. As to purchases/acquisitions for the General Fund, the following is proposed: water truck ($120,000), crack seal equipment ($25,000) and one half share of grant funded (NCTCOG) front end loader ($85,000) in the Street Department; light duty vehicle for the IT Department ($30,000); matching funds (FEMA grant) for emergency warning sirens ($55,000); commercial grade mower ($15,000) and tractor ($30,000) in the Parks Department and a supervisor's vehicle in the Fire/EMS Department ($50,000). Other projects proposed for the upcoming fiscal year in the General Fund include partial funding of an Economic Development consultant fee ($25,000) and a Community Relations contract position ($10,000). Water/Sewer Fund As to revenues in the Water/Sewer Fund, we have seen something of a stabilization in receipts following the drought of 2013-2015. This will be helpful in planning for the Turkey Peak Reservoir project which received its final permit from the US Army Corps of Engineers earlier this year. Another consideration which impacts rates/revenue requirements going forward is the recently approved 2017 Bond Propositions which support utility adjustments associated with street improvements, as well as the Hwy 180 W waterline upgrade project. These bond projects will require an annual debt service payment of approximately $350,000. This debt service equates to roughly a 3.7% increase in water/sewer rates. To recognize this additional debt service element and offset inflationary and other anticipated costs to include the Turkey Peak Reservoir, it is recommended that the Council approve a 10% water and 7% sewer rate increase. Assuming a total rate increase of 10% in water and sewer rates at 7%, the monthly increase to our average residential customer using 5,000 gallons of water would be roughly $3.93 and $2.87 respectively, or some $6.71 in total. 21 Page Concerning expenditures in the Water/Sewer Fund, it is proposed that step pay adjustments be implemented for Water/Sewer employees at a cost of $41,186. As to nonpersonnel related expenditures proposed for the Water/Sewer Fund the following is presented: matching funds for the ongoing CDBG SE 2nd Street fire protection project ($55,000); acquisition of a 12 yard dump truck utilizing NCTCOG grant funds ($85,000) in Water Distribution; matching funds for FEMA grant supported acquisition for three lift station backup generators in the Wastewater Department ($130,000); purchase of a light duty truck in each of the Water Customer Service and Public Works Administration Departments ($50,000); chlorine system upgrades at the Hilltop Water Treatment Plant ($50,000); replacement of blower units (2) at the Willow Creek and Pollard Wastewater Treatment Plants ($100,000); and materials for Phase I waterline upgrades along North Keller Road ($50,000). No other major expenditures are contemplated in the Water/Sewer Fund. Airport Fund Concerning the Airport Fund, we are experiencing an annualized increase in fuel sales of 10-15%, the first notable increase in a number of years. This is a positive trend we will attempt to promote as we further develop that revenue stream for the Airport. Another positive relating to the Airport is the initiation of the TxDOT sponsored Capital Improvements Program (CIP) to seal coat and restripe runway 13/31 and associated taxiways/ramps which will commence in Fiscal Year 2018-19. Matching funds in the amount of $110,000 are budgeted from the Airport Fund to support engineering/design and Phase I construction activities of the CIP project. A new effort at the Airport and seeking to further the exposure and market presence of the Airport is membership in the Parker County Economic Development Council ($5,000). Lastly, $25,000 is budgeted to participate in the TxDOT Aviation RAMP program to support various maintenance and capital needs at the Airport. Drainage Utility Fund As to the Drainage Utility Fund, several projects are proposed for funding in the upcoming fiscal year. Initially, it is planned that a comprehensive drainage and rate study will be completed at a cost of $120,000. Likewise, funds are budgeted to potentially augment drainage related activities (curb, gutter, etc.) associated with street improvements to be funded though the 2017 Bond Program. Lastly, provision is made to investigate and possibly fund a drainage improvement project in the Bluffview Addition. 3I Page Following the presentation, Mrs. Underwood moved and Ms. Johnson seconded to hold a Public Hearing on the proposed budget and to discuss the tax rate on August 14, 2018. Motion carried 7-0. There was no further business and the meeting adjourned at 6:51 p.m. Christopher M. Perricone, Mayor ATTEST: Pe~/vft(~rk APPROVED: 08/07/Jv/rf 41 Page