2006-09-05 CITY COUNCIL PUBLIC HEARING MEETING MINUTESPUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS,
HELD ON SEPTEMBER 5, 2006, AT 6:30 P.M. IN THE COUNCIL CHAMBERS, CITY
HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
Mayor Reid called the meeting to order at 7:04 p.m. with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Secretary
Tom Reid
Richard Tetens
Kevin Cole
Helen Beckman
Felicia Kyle
Steve Saboe
Bill Eisen
Darrin Coker
Young Lorfing
Others in attendance: Public Works Director Danny Cameron; City Engineer Doug
Kneupper; Police Chief J.C. Doyle; Project Director Trent Epperson; Assistant City
Manager Nick Finan; Director of Human Resources and Safety Management Mary
Hickling; Assistant City Manager Mike Hodge; Executive Director of Economic
Development Corporation; Administrative Analyst Chris Kidwell; Assistant Police Chief
Johnny Spires; Municipal Court Administrator Pat Riffel; Assistant Director of Finance
Rick Overgaard; and Budget Analyst June Ellis.
PURPOSE OF HEARING — PUBLIC COMMENT AND TESTIMONY REGARDING THE
PROPOSED BUDGET FOR FISCAL YEAR 2007 (OCTOBER 1, 2006 TO SEPTEMBER
30, 2007) FOR THE CITY OF PEARLAND. Mr. Bill Eisen, City Manager.
STAFF REVIEW OF PROPOSED BUDGET FOR FISCAL YEAR 2007 (OCTOBER 1,
2006 TO SEPTEMBER 30, 2007) FOR THE CITY OF PEARLAND. Mr. Bill Eisen, City
Manager.
City Manager Bill Eisen presented the proposed budget for the fiscal year 2006-2007.
The proposed tax rate is $0.298974/$100 valuation for the General Fund and
$0.353685/$100 valuation for Debt Service for a total tax rate of $0.652659/$100
valuation. This is a $0.21741/$100 valuation or 3.22% decrease from the current tax rate
of $0.3455/$100 valuation for the General Fund and $.03289/$100 valuation for Debt
Service for a total tax rate of $0.6744/$100 valuation.
General Fund Expenditures total $39.7 million with public safety being the largest
expense at 37%. General Fund Revenues total $38.9 million with property tax being the
largest contributor at 28%. The General Fund provides for a population growth of 11,600
or 17% in size. The proposed budget includes 23 new personnel including 10 additional
police officers. If the budget is approved, Pearland will also implement a Street
Sweeping Program, an Enhanced Right -Of -Way Program, a combined volunteer and
paid Fire Department and convert 16 part-time EMS staff to full-time. The General Fund
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also has funding for the Old Town Site Infrastructure and the replacement of vehicles
and equipment. The proposed budget has a revised General Fund balance of
$6,849,185, which is $1,198,796 over the policy total of $5,650,389.
Water and Sewer expenses are projected to be approximately $20.2 million with 34% of
that being debt service. The Fund is for the primary operating costs of water and sewer
for the City and incorporates a 25% revenue increase due to water expansion. Proposed
water and sewer funding will include growth and development of Municipal Utility District
No. 1 and select supplemental request in-house, such as, operations of Municipal Utility
District No. 5, Green Tee lift station rehabilitation, the replacement of Liberty Ground
Storage Tank, and the replacement of vehicles and equipment. The available
Water/Sewer Fund balance is $1,438,135 with a rate study/model of (50,000) and a
revised balance of $1,388,135. The bond coverage ratio is 1.87 ratio and the cash
reserve ratio is 12%.
The Pearland Economic Development Corporation (PEDC) approved the PEDC Fund
July 10, 2006. The fund will include costs for marketing and promotions. Capital
projects will provide $2.2 million for infrastructure on the east side of SH 288, $1.9 million
for upgrades to a 50 -meter pool, and $0.4 million for other capital projects. The fund
balance as of September 2007 will be $4.3 million.
CITIZEN COMMENTS
Charles McMurrey, 5209 Spring Branch Dr., addressed Council and stated he is aware
that when the budget reaches the point of the second Public Hearing it is already
finalized. His objective is to express that the idea of a Homestead Tax Exemption for
everyone is practical. Setting the tax rate is nothing more than an Algebra equation and
the City should review the possibility to provide a Homestead Tax Exemption. Pearland
has 25% of its residential property under $100,000 and this shows that the City doesn't
have to worry about that $12 a month but some citizens cannot afford it.
COUNCIL/STAFF DISCUSSION:
Councilmember Beckman stated Mr. McMurrey had a valid point and the City should at
least review the possibility of the Homestead Tax Exemption.
City Manager Bill Eisen stated it should not be a problem to review the Homestead Tax
Exemption as an option for a future budget.
Mayor Pro -Tem Tetens stated asked if the 25% increase for Sewer and Water was
added into statistics when Pearland was compared to other Cities in the area.
Councilmember Cole asked for an explanation on why the Water/Sewer highlights show
bond coverage of $1.87 million when most Municipal Utility Districts carry an amount of
$1.25 million.
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City Manager Bill Eisen stated in the year of issuance of the bond it is $1.4 million; the
City will be selling early and this will affect the rate.
ADJOURNMENT
Meeting was adjourned at 7:23 p.m.
Minutes approved as submitted and/or corrected this the 25th day of September, A.D.,
2006.
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Tom Reid
Mayor
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PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS,
HELD ON SEPTEMBER 5, 2006, AT 6:30 P.M. IN THE COUNCIL CHAMBERS, CITY
HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
Mayor Reid called the meeting to order at 7:23 p.m. with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Secretary
Tom Reid
Richard Tetens
Kevin Cole
Helen Beckman
Felicia Kyle
Steve Saboe
Bill Eisen
Darrin Coker
Young Lorfing
Others in attendance: Public Works Director Danny Cameron; City Engineer Doug
Kneupper; Police Chief J.C. Doyle; Project Director Trent Epperson; Assistant City
Manager Nick Finan; Director of Human Resources and Safety Management Mary
Hickling; Assistant City Manager Mike Hodge; Executive Director of Economic
Development Corporation; Administrative Analyst Chris Kidwell; Assistant Police Chief
Johnny Spires; Municipal Court Administrator Pat Riffel; Assistant Director of Finance
Rick Overgaard; and Budget Analyst June Ellis
PURPOSE OF HEARING — PUBLIC COMMENT AND TESTIMONY REGARDING THE
PROPOSED 2006 TAX RATE FOR THE 2006 — 2007 BUDGET. Mr. Bill Eisen, City
Manager.
STAFF REVIEW OF THE PROPOSED 2006 TAX RATE FOR THE 2006 — 2007
BUDGET. Mr. Bill Eisen, City Manager.
City Manager Bill Eisen stated tax values for the next year are projected to increase by
approximately $830,000,000 over the current values. This has occurred due to: the
annexation of Municipal Utility District No. 5, $423,000,000 is new construction, and
$270,000,000 revaluation of existing property, the $71,000,000 deducted is from
changes in exemption. The tax rate in the proposed budget is $0.652659/$100 valuation
compared to last year's rate of $0.6744/$100 valuation.
CITIZEN COMMENTS: None.
COUNCIL/STAFF DISCUSSION: None.
Page 1 of 2 - 9/5/2006
ADJOURNMENT
Meeting was adjourned at 7:25 p.m.
Minutes approved as submitted and/or corrected this the 25th day of September, A.D.,
2006.
Tom Reid
TTEST: Mayor
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y Se r tary
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