2012-09-10 CITY COUNCIL PUBLIC HEARING TAX MEETING MINUTESMINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON MONDAY, SEPTEMBER 10, 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 6:40 p.m. with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Secretary
Tom Reid
Susan Sherrouse
Woody Owens
Scott Sherman
Keith Ordeneaux
Greg Hill
Bill Eisen
Darrin Coker
Young Lorfing
Others in attendance: Jon Branson Assistant City Manager; Matt Buchanan President of
Economic Development Corporation; Trent Epperson Director of Engineering and
Capital Projects; Mike Hodge Assistant City Manager; Claire Bogard Finance Director;
Sparkle Anderson Public Affairs Manager; Skipper Jones Assistant Director of Capital
Projects.
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 THE 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
rates 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 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.
Page 1 of 2 — 9/10/2012
CITIZEN COMMENTS:
Charles McMurrey, 5209 Spring Branch Dr, addressed Council stating he is alarmed at
how much the tax rate is going to debt service. He would like to encourage Council to
consider increasing the tax rate to the roll back tax rate . The advantage to increasing
the tax rate up to the roll back rate will change the effective tax rate for the next year.
The past ten years of bond indebtedness is a serious problem.
COUNCIL/STAFF DISCUSSION: None.
ADJOURNMENT:
Meeting was adjourned at 6:53 p.m.
Minutes approved as submitted and/or corrected this the 22nd day of October, A.D.,
2012.
Tom Reid
Mayor
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Page 2 of 2 — 9/10/2012
MINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON MONDAY, SEPTEMBER 10, 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 6:53 p.m. with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Secretary
Tom Reid
Susan Sherrouse
Woody Owens
Scott Sherman
Keith Ordeneaux
Greg Hill
Bill Eisen
Darrin Coker
Young Lorfing
Others in attendance: Jon Branson Assistant City Manager; Matt Buchanan President of
Economic Development Corporation; Trent Epperson Director of Engineering and
Capital Projects; Mike Hodge Assistant City Manager; Claire Bogard Finance Director;
Sparkle Anderson Public Affairs Manager; Skipper Jones Assistant Director of Capital
Projects.
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 $330,227,000 and incorporates General Fund
revenue enhancements of $522,087,000. 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.
Page 1 of 4 — 9/10/2012
CITIZEN COMMENTS:
Charles McMurrey, 5209 Spring Branch Dr, addressed Council stating the City of
Pearland Budget shows the City takes good care of the Fire and Police Departments.
The full time employee equivalents per the population is the lowest it has been since
2007. The population has grown by 7% and employee staff by 2%. The staff has to be
exceptionally efficient everyday to keep up with the population. This goes back to the
debt service and bond indebtedness. The City is going to continue to grow, and with
the bond indebtedness there is not going to be enough funds. He would like for
Council to reconsider the road impact fee.
COUNCIL/STAFF DISCUSSION:
Councilmember Sherman asked where is the City going to outsource the contract
EMS/Fire dispatchers.
City Manager Bill Eisen stated there are a couple of possibilities in the Cypress area.
It will be a competitive process to determine which organization will be best for the City
financially.
Mayor Reid stated the City's population is gaining rapidly and the City works very
effective and efficient in the use of employees per population base increase. The other
aspect of the budget is the 2% tax increase because of the debt service. The debt
service was a result of citizens requesting certain Capital Improvements. Most of the
Capital Improvements resulting from the 2001/2007 bond issue have been put in place
and has made Pearland a unique City. Mayor Reid commended Senior Staff and each
Employee for the good work they have contributed.
Councilmember Sherman stated his preference is to pull the $50,000 designated for
the Cultural Arts Study from the budget. At this point he is not comfortable with the
legal justification.
Mayor Pro -Tem Sherrouse stated she found an existing study from 2009. The Public
Facility Option Study given to Economic Development Corporation. If the City funds the
Cultural Arts Study the City needs to revisit the study that has already been paid for. If
the City decides to do a study; she would like to see it rolled into the comprehensive
plan. In the future when decisions and/or policies need to be made everyone will be on
the same page.
City Manager Bill Eisen stated he would get a copy of the 2009 Public Facility Option
Study to each Councilmember.
Councilmember Hill asked what is the $65,000 expenditure for the Cultural Arts
Promotion.
Page 2 of 4 — 9/10/2012
City Manager Bill Eisen stated $50,000 is for the Cultural Arts Study and $15,000 is a
program the City has in place for small grants. Entities or organizations that may have
a specific Arts related project can submit a grant application for funding.
Councilmember Owens asked if the City has received grant applications.
Assistant City Manager Jon Branson stated he would get Council a report of the
organizations that have received an Art grant. He stated $5,000 is for the Art Grant and
$10,000 is for the Historical Society. The $10,000 has not been used.
Councilmember Owens stated having the Cultural Art Group going out to solicit funds is
more than what the City has done in the past. He agrees with taking the $50,000 from
the budget. The City can come back anytime on the Hotel/Motel Tax and take those
funds and allocate to the Art Group. Later he would like to see a report from the Art
Group showing what they have accomplished and at that time the City can look at
matching funds.
Councilmember Owens stated the Destination Marketing has an additional $100,000.
Councilmember Owens stated a comment was made that $40,000 of those funds may
not be spent. The City could fund $60,000 and later appropriate the $40,000 if needed.
City Manager Bill Eisen stated Destination Marketing thought they may not need the
funding for projects that they will attempt to sell advertizing for. The intent was to know
the funding would be in the budget in the event they could not sell all the advertizing.
Councilmember Sherman stated Destination Marketing may be building programs
around the $40,000. Mr. Cory Cart of Destination Marketing is not present tonight and
I would hate to remove the funds from the budget not knowing how it will affect his
budget and operations.
Councilmember Ordeneaux stated Cory Cart of Destination Marketing was brought on
to do a job. He has done a good job to tighten the budget. I agree to leave the funds
in the budget.
Councilmember Hill stated he agrees to leave the money in the budget for Destination
Marketing because it seems to have a direct affect on heads and beds.
Mayor Pro -Tem Sherrouse and Councilmember Owens agreed to leave the $40,000 in
the budget for Destination Marketing.
City Manager Bill Eisen stated to clarify Council's desire is to remove the $50,000
designated for the Cultural Arts Study from the budget with the potential to add it back
at some point during the year once Council receives a report from the Art Group, and
leave the $40,000 in the Destination Marketing Budget.
Page 3 of 4 — 9/10/2012
ADJOURNMENT:
Meeting was adjourned at 7:45 p.m.
Minutes approved as submitted and/or corrected this the 22nd day of October, A.D.,
2012.
Tom Reid
Mayor
ATTEST:
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