2012-09-04 CITY COUNCIL PUBLIC HEARING MEETING MINUTESMINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON TUESDAY, SEPTEMBER 4, 2012, AT 6:30 P.M. IN
THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND,
TEXAS.
Mayor Reid called the meeting to order at 6:30 p.m. with the following present:
Mayor
Tom Reid
Mayor Pro -Tem
Susan Sherrouse
Councilmember
Scott Sherman
Councilmember
Keith Ordeneaux
Councilmember
Greg Hill
City Manager
Bill Eisen
City Attorney
Darrin Coker
City Secretary
Young Lorfing
Absent: Councilmember Woody Owens.
Others in attendance: Claire Bogard Finance Director; Michelle Smith Director of Parks
and Recreation.
PURPOSE OF HEARING — PUBLIC COMMENT AND TESTIMONY REGARDING THE
PROPOSED 2012 TAX RATE FOR THE 2012-2013 BUDGET.
Mr. Bill Eisen, City Manager.
STAFF REVIEW OF PROPOSED 2012 TAX RATE FOR THE 2012-2013 BUDGET.
Mr. Bill Eisen, City Manager.
Bill Eisen City Manager reported the tax rate as proposed for the City of Pearland for tax
year 2012 is $.7051 per $100 valuation, which exceeds the effective tax rate of
$.673287, a 4.73% increase over the effective rate. The tax rate is split into two
components: operating and debt service. The proposed operating tax rate is $0.2151
per $100 valuation, the same as the current year, and the proposed debt service tax
rate is $0.4900 per $100 valuation, a two cent increase from the current tax rate. Even
though the proposed tax rate exceeds the effective tax rate, the increase in the total tax
rate of $5.25 cents from the 2007 tax rate is still less than the anticipated $0.13 debt
service tax increase needed to implement the $160 million bond referendum approved
by the voters in 2007.
CITIZEN COMMENTS:
Adam Carroll, 2502 Alexander, addressed Council stating he is in favor of a tax
increase. He would like to see it go to operating expense instead of debt expense.
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COUNCIUSTAFF DISCUSSION:
Mayor Reid stated the projects that were discussed, for example the Street
Project, Parks and Recreation Natatorium, Soccer Fields, Public Safety Building, and
drainage issues, with minor exception everyone of those projects was a bond issue
requested by the citizens. The City is working with an operation and maintenance tax
rate that has not changed over the years. The tax increase is to accommodate the
projects requested by the citizens.
ADJOURNMENT:
Meeting was adjourned at 6:43 p.m.
Minutes approved as submitted and/or corrected this the 8th day of October, A.D., 2012.
Tom Reid
Mayor
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Page 2 of 2 — 9/4/2012
MINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON TUESDAY, SEPTEMBER 4, 2012, AT 6:30 P.M. IN
THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND,
TEXAS.
Mayor Reid called the meeting to order at 6:43 p.m. with the following present:
Mayor
Tom Reid
Mayor Pro -Tem
Susan Sherrouse
Councilmember
Scott Sherman
Councilmember
Keith Ordeneaux
Councilmember
Greg Hill
City Manager
Bill Eisen
City Attorney
Darrin Coker
City Secretary
Young Lorfing
Absent: Councilmember Woody Owens.
Others in attendance: Claire Bogard Finance Director; Michelle Smith Director of Parks
and Recreation.
PURPOSE OF HEARING — PUBLIC COMMENT AND TESTIMONY REGARDING THE
PROPOSED BUDGET FOR FISCAL YEAR 2012-2013 (OCTOBER 1, 2012 TO
SEPTEMBER 30, 2013) FOR THE CITY OF PEARLAND. Mr. Bill Eisen, City Manager.
STAFF REPORT STAFF REVIEW OF PROPOSED BUDGET FOR FISCAL YEAR
2012-2013 (OCTOBER 1, 2012 TO SEPTEMBER 30, 2013) FOR THE CITY OF
PEARLAND. Mr. Bill Eisen, City Manager.
Bill Eisen City Manager reported the budget being considered by City Council meets all
the City's Reserve and Bond Covenant requirements, addresses all of City Council's
Goals that were established in February of this year 2012. It continues the
implementation of the 2007 Bond Referendum and Capital Improvement Program. It
maintains financial health and stability now and in the future. It funds supplemental
requests including some new positions and personnel pay increases. It incorporates
General Fund budget reductions totaling $330,227 and incorporates General Fund
revenue enhancements of $522,087. It maintains, and in . some instances, increases
services and service levels for an estimated population of 104,100 including annexation
of Brazoria County MUD #4 effective December 31, 2012. There will be no water/sewer
rate increase and the solid waste increase will be based on the consumer price index
per Waste Management's contract.
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CITIZEN COMMENTS:
Adam Carroll, 2502 Alexander, addressed Council stating he understands how
diligent City Staff has worked on the budget. He is speaking on behalf of the City
Employees. The Employees do not understand everything that goes into preparing a
budget for a City. The Employees see it as a conspiracy. They receive a salary
increase, but it is taken away by raising the cost of the health insurance. He stated he
would like to challenge Councilmembers and City Staff for next year to take into
consideration giving the employees a salary increase. If there is an increase in health
insurance, absorb that increase another way other than having the employees pay for
the increase.
COUNCIL/STAFF DISCUSSION:
Mayor Reid stated between the 2001 and 2007 Bond Issues and indebtedness the City
has been able to accommodate the debt service through the growth of the City and
sales tax increase. What hurt the City and causing the problem today is the down turn
in 2008, 2009, 2010 and 2011. The City is no longer able to accommodate the debt
service through the growth of the City and sales tax. It is a testimony to good
management and adherence to good accounting practices that the City is able to
accommodate the debt service with only a 2% tax increase. It is a compliment to City
Staff and City employees what the City has accomplished.
ADJOURNMENT:
Meeting was adjourned at 7:20 p.m.
Minutes approved as submitted and/or corrected this the 8th day of October, A.D., 2012.
Tom Reid
Mayor
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