2014-08-13 CITY COUNCIL SPECIAL MEETING MINUTESMINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY
OF PEARLAND, TEXAS, HELD ON WEDNESDAY, AUGUST 13, 2014, AT
6:00 P.M., IN THE COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE,
PEARLAND, TEXAS.
Mayor Reid called the meeting to order at 6:00 p.m. with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Secretary
Tom Reid
Keith Ordeneaux
Tony Carbone
Scott Sherman
Gary Moore
Greg Hill
Clay Pearson
Darrin Coker
Young Lorfing
Others in attendance: Claire Bogard Finance Director; Jon Branson Deputy City
Manager; J.C. Doyle Police Chief; Michelle Graham Director of Parks and
Recreation; Bonita Hall Director of Human Resource and Safety Management;
Lata Krishnarao Director of Community Development; Eric Wilson Public Works
Director; Sparkle Anderson Communications Manager; Johnny Spires Assistant
Police Chief; Joel Hardy Grants Coordinator.
PURPOSE OF THE MEETING:
Council Action — Resolution No. R2014-99 — A Resolution of the City Council
of the City of Pearland, Texas, placing on the agendas of September 22, 2014
and September 29, 2014 City Council meetings, consideration of the proposed
fiscal year 2014-2015 budget and setting the public hearing on the budget for
September 2, 2014.
Councilmember Carbone made the motion, seconded by Councilmember
Sherman, to approve Resolution No. R2014-99.
City Manager Clay Pearson reported Council is being asked to approve the dates
of the scheduled Public Hearings.
Voting "Aye" Councilmembers Carbone, Sherman, Ordeneaux, Moore, and Hill.
Voting "No" None.
Motion Passed 5 to 0.
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Council Action — To vote on Proposed Tax Rate and Tax Revenue Increase,
establish City Council Meeting Dates to Set Public Hearings on the Proposed
FY2014-2015 Tax Rate and Date to Adopt the Tax Rate.
A. Resolution No. R2014-100 — A Resolution of the City Council of the City of
Pearland, Texas, voting on a proposed tax rate of $.7121, a property tax revenue
increase of 5.62% above the effective tax rate, and placing on the agendas of
September 22, 2014 and September 29, 2014 City Council meetings,
consideration of the proposed fiscal year 2014-2015 tax rate and setting the
public hearings on the tax rate for September 2, 2014 and September 8, 2014.
or
B. Resolution No. R2014-100 - A Resolution of the City Council of the City of
Pearland, Texas, voting on a proposed tax rate of $.7171, a property tax revenue
increase of 6.36% above the effective tax rate, and placing on the agendas of
September 22, 2014 and September 29, 2014 City Council meetings,
consideration of the proposed fiscal year 2014-2015 tax rate and setting the
public hearings on the tax rate for September 2, 2014 and September 8, 2014.
Councilmember Sherman made a motion, seconded by Mayor Pro -Tem
Ordeneaux to vote on the Proposed Tax Rate and Tax Revenue Increase,
establish City Council Meeting Dates to Set Public Hearings on the Proposed
FY2014-2015 Tax Rate and Date to Adopt the Tax Rate.
City Manager Clay Pearson reported Council is being asked to approve
Resolution No. R2014-100 A or B.
Finance Director Claire Bogard gave a power point presentation regarding the
Property Tax Rate.
Mayor Pro -Tem Ordeneaux asked if scenario A would keep the City below the
roll back.
Finance Director Claire Bogard stated the City would have to lower the tax rate to
$.7171 per $100 valuation. The difference between the $.7121 per $100
valuation and $.7171 per $100 valuation is the debt service tax rate.
Mayor Pro -Tem Ordeneaux asked if the City could pay the debt down sooner
with the extra half cent.
Finance Director Claire Bogard stated the City is not using it to pay the debt
down sooner. She was trying to flatten the impact for 2016.
Mayor Reid asked what the difference would be between the two rates on a
$200,000 home.
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Finance Director Claire Bogard stated it would be $5.00 per $100,000 property
valuation.
Councilmember Carbone stated looking at both scenarios the overall change out
to 2019 is a quarter of one cent (.0275). He does not know why the City wants to
artificially raise it to potentially save a quarter of one cent (.0275) in 2019. He
stated the City is not paying down debt, it is taking the money out of the tax
payers pocket to put in the City's fund.
Finance Director Claire Bogard stated Staff is trying to limit the increase the
following year.
Councilmember Sherman asked if the revenue loss to the General Fund is going
to hurt the City regarding programs, and is the City finding cuts elsewhere.
City Manager Clay Pearson stated the City has a $60,000,000 budget, the Staff
is working out ways to pay the nuts and bolts of running a local government.
$50,000 will not make or break anything, it just means whatever the City comes
up with in terms of programs it will be that much easier to bridge that gap.
Councilmember Hill stated the numbers are in front of Council. Since there is not
a significant impact Council should leave the debt service tax rate at $.49 per
$100 valuation, either way Council is not increasing Staff's ability to do more. In
his opinion that is a reason to vote for option A.
Mayor Pro -Tem Ordeneaux stated he is leaning towards the $.7121 per $100
valuation because he does not see the benefit of the half cent since the City is
not going to be paying down debt with it.
Councilmember Carbone asked once this is published does that set the cap.
Finance Director Claire Bogard stated that does set the cap, but the City cannot
change the debt service component of the tax rate.
Mayor Pro -Tem Ordeneaux made a motion, seconded by Councilmember
Carbone to approve Resolution No. R2014-100 — A Resolution of the City
Council of the City of Pearland, Texas, voting on a proposed Tax rate of $.7121,
a property tax revenue increase of 5.62% above the effective tax rate, and
placing on the agendas of September 22, 2014 and September 29, 2014 City
Council meetings, consideration of the proposed fiscal year 2014-2015 tax rate
and setting the public hearings on the tax rate for September 2, 2014 and
September 8, 2014.
Councilmember Carbone asked if Council has questions or would like to make
changes when would that need to be communicated and finalized.
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Finance Director Claire Bogard stated all changes would need to be incorporated
prior to September 22, 2014. The first reading of the Ordinance will be
September 22, 2014.
Voting "Aye" Councilmembers Hill, Moore, Ordeneaux, and Carbone.
Voting "No" Councilmember Sherman.
Motion Passed 4 to 1.
ADJOURNMENT
Meeting was adjourned at 6:31 p.m.
Minutes approved as submitted and/or corrected this the 22nd day of September,
A.D. 2014.
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Tom Reid
Mayor
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