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2003-08-25 CITY COUNCIL PUBLIC HEARING MEETING MINUTESMINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, HELD ON AUGUST 25, 2003, AT 7:15 P.M. IN THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS. The meeting was called to order with the following present: Mayor Mayor Pro -Tem Councilmember Councilmember Councilmember Councilmember City Manager City Attorney City Secretary Tom Reid Richard Tetens Charles Viktorin Woody Owens Larry Marcott Klaus Seeger Bill Eisen Darrin Coker Young Lorfing Others in attendance: Deputy City Manager Alan Mueller; Executive Director of Community Services Tobin Maples; Executive Director of Economic Development Corporation Fred Welch; Police Chief J.C. Doyle; City Engineer Doug Kneupper; Public Affairs Liaison Lynn Munford; Director of Finance Mary Ross; Parks & Recreation Director Thomas Grieve; Purchasing Officer Gordon Island; Project Director Joe Wertz; Assistant Police Chief Johnny Spires; Assistant Fire Marshal Steve Norton; Administrative Analyst Chris Kidwell PURPOSE OF HEARING - 2003-2004 BUDGET — A PROPOSAL TO INCREASE TAXES 7.6% ABOVE THE EFFECTIVE TAX RATE BASED ON A RATE OF $.696/$100 1 N VALU E. Mr. Bill Eisen, City Manager. STAFF REVIEW OF PROPOSED BUDGET City Manager, Bill Eisen, stated City Council has held three different workshops regarding the proposed budget for the upcoming fiscal year. He stated during the workshops, one of the items included during discussion was the Tax Rate increase. Mr. Eisen stated the Tax Rate would be voted on its first reading during tonight's Regular Council Meeting and the second and final reading on September 8, 2003, Regular City Council Meeting. He stated the Public Hearing tonight is required by State Law and is specifically for the combination of increased revenue based on property reappraisals and a proposed change to the Tax Rate, an increase of $0.01. The total amount change will be a combination of the new Tax Rate and the value of the property appraised by the Brazoria County Appraisal District. Page 1 of 4 — 8/25/2003 CITIZEN COMMENTS Tom Radenski, 6220 Gardenia, addressed Council and stated he is against the proposed Tax increase. He stated the City has been able to hold the Tax Rate during previous years, but the citizens were held at higher property appraisals. His appraisal went up more than 40%, and he was able to get it reduced through the Appraisal District. He stated the increase was still above by 10%. C.D. Anderson, 1315 Jasper Drive, addressed Council and stated thousands of acres are going to the developers, and direct dollars are coming out of the citizens pockets due to this. The raising of taxes is to compensate for the debt that has occurred. Mr. Anderson stated he is against the increase and gave brief comments regarding the Councilmembers comments in the Houston Chronicle. He stated there is not enough building inspectors to handle the new development taking place, ensuring the building codes and standards are being upheld. Robert Williams, 4003 Longherridge, addressed Council and stated he is opposed to the increase in Property Taxes. He stated he is retired, and soon he will not be able to live here due to increased Property Taxes, even though his home is paid off. His Property Taxes far exceed anything he has ever paid regarding his house payments. Mr. Williams stated since the Appraisal District and the City are totally independent of one another, there is no discussion taking place between the two regarding the increase in Property Taxes and property appraisals. He stated some handles need to take place regarding the spending in the City's Budget, allowing this increase in Property Taxes. James Bost, 2102 Shadybend Drive, addressed Council and stated he would like to echo what the previous speakers addressed. He stated the Tax Rate increase is ridiculous. Bill Daniels, 1508 Sweetgum Court, addressed Council and stated he agrees with the previous speakers. He stated the discussion should not be about increasing the Tax Rate, but what percentage to decrease the Tax Rate. During the last two years, property appraisals have increased. The City is already receiving funding from that increase and now wants more through the Property Tax Rate. He stated the City should be discussing how to minimize the property appraisal increase by reducing the Property Tax Rate Increase. Mr. Daniels gave additional comments regarding the hiring of new police officers for the City and new development within the City. Page 2 of 4 — 8/25/2003 Michael Klaus, 5016 Groveton, addressed Council and stated his comments regarding funding from the City to the Appraisal District. He stated the City also has influence with some of the projects and operations within the City. Steve Saboe, 3504 Lindhaven, addressed Council and stated there is a lot of discussion regarding growth in Pearland. He asked Council to make a final statement regarding managing that growth in Pearland. Brian Fore, 2114 Westminister, addressed Council and stated he is a member of C.L.O.U.T. He stated his property appraisal amount increased. He stated he debated the increase in his property value with the Brazoria County Appraisal District and the burden the increase placed on his family. He stated his company alone has had to lay off individuals and his personal increase has not been as great as the tax burdens. He stated to please vote no to this Tax Rate increase. COUNCIUSTAFF DISCUSSION Councilmember Owens stated when speaking of the budget there are two areas, bond indebtedness, and operations and maintenance. He stated a few years ago a bond program was passed. He stated due to the way things have been taking place, the maintenance side has been lowered, and the bond side has been raised. Therefore, in reality, the citizens are seeing a request only for a $0.01 Tax Rate increase, rather than a $0.04 or $0.05 Tax Rate increase because of the bond issue of 2001. City Manager, Bill Eisen, stated last fiscal year, the same results from the debt service side has increased the debt service by $0.02. He stated only $0.01 tax increase is being passed on at the current time. He stated if the growth was not here, the Tax Rate would absorbent. He stated a lot of this could be contributed to better fiscal maintenance of the money currently available and also the growth within Pearland, lowering the Tax Rate. He stated the citizens are paying a lower Tax Rate now than in 1994. Councilmember Owens stated citizens did vote for the bond program and by right the City should be levying about a $0.05 increase to pay for the bonds that have been sold so far. Mayor Pro -Tem stated citizens may have a lower tax rate now than in 1994, however, due to the difference in property values from then and now, the citizens are not paying lower taxes. Mayor Reid stated his observation shows the Tax Rate has remained the same since 1996, and due to growth, the $0.01 Tax Rate increase is proposed. He stated Pearland Page 3 of 4 — 8/25/2003 is very fortunate to have the incoming growth. Mayor Reid stated he would also like to comment on the remark regarding the police. He stated by law the City has to have a certain amount of police officers per head count in the City. He stated more tickets are being issued verses crime arrests because there is less crime in the City due to the increase in officers. Mayor Reid stated this is a good thing overall for the City and the Police work very. hard in catching criminals. In closing, Mayor Reid stated he appreciated all the comments made by the citizens. Councilmember Viktorin stated leading up to the November 2001 Bond Election, a 10% Tax Rate increase was foreseen over a period of six years. He stated the City in 2001, realized a lot of work needed to been done within the City and put it up for public vote. He stated the end result was decided by the voters, and new projects are taking place within the City. Councilmember Viktorin stated with the projects comes increases. ADJOURNMENT Meeting was adjourned at 7:43 p.m. Minutes approved as submitted and/or corrected this the 8th day of September , A.D., 2003. Tom Reid Mayor ATTEST: Page 4 of 4 — 8/25/2003