2016-08-29 CITY COUNCIL PUBLIC HEARING MEETING MINUTESI
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MINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON MONDAY, AUGUST 29, 2016, 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
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Secretary
Tom Reid
Gary Moore
Tony Carbone
Derrick Reed
Keith Ordeneaux
Greg Hill
Trent Perez
Clay Pearson
Darrin Coker
Young Long
Others in attendance: Jon Branson Deputy City Manager; Matt Buchanan President of
Pearland Economic Development Corporation; J.C. Doyle Police Chief; Trent Epperson
Assistant City Manager; Michelle Graham Director of Human Resource; Tara Kilpatrick
Budget Officer; Lata Krishnarao Director of Community Development; Chris Orlea
Director of Parks and Recreation; Cynthia Pearson Director of Finance; Eric Wilson Public
Works Director; Sparkle Anderson Communications Director; Joel Hardy Grants
Coordinator; Jennifer Huhn Court Administrator; Richard Mancilla Interim City Engineer;
John McCarter Management Assistant; Daniel McGhinnis Chief Information Officer; Rick
Overgaard Assistant Finance Director; Lawrence Provins Deputy City Attorney; Johnny
Spires Assistant Police Chief.
Call to Order
Purpose of Hearing — Public Hearing on the Proposed Fiscal Year 2016-2017 Budget.
Staff Review— Proposed 2016-2017 Budget.
City Manager Clay Pearson reported pursuant to the Texas Local Government Code, the
City of Pearland is required to hold a public hearing on the proposed budget giving
taxpayers an opportunity to participate in the process.
Budget Officer Tara Kilpatrick presented a power point on the Proposed Fiscal Year
2016-2017 Budget.
Citizen Comments:
Scott Stelmar, 3204 Tamara Creek Lane, addressed Council stating what are the
residents getting for going above the rollback tax rate and how would someone start a
petition to go against the tax rate.
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Paul Stobbe, 13310 Jasmine Peak Court, addressed Council stating his concerns '
regarding the property tax increase.
Charles McMurry, 5209 Spring Branch Drive, addressed Council stating he agrees with
Councilmember Perez regarding the services the City needs to provide and the amount
of funds needed to provide these services do not match up.
Livia Torres, 3318 Churchill, addressed Council stating her concerns regarding the water
and sewer rate increase.
Lisa Hudanich, 2410 Eagles Way, addressed Council stating her concerns regarding the
water and sewer and property tax increase. She further stated the citizens are not seeing
the value for the money.
Ron Mansell, 2707 Lauren Creek Way, addressed Council stating his concerns regarding
the water and sewer rate increase.
Woody Owens, 2117 Country Club Drive, addressed Council stating his concerns
regarding the water and sewer rate increase.
Council/Staff Discussion
City Manager Clay Pearson stated the City is using the Fund Balance to cover '
reoccurring cost. Last year the City was in a good position and was able to add police
officers, opened two new fire stations and added staff and equipment. Operating costs
continue each year. With the growth of the City we are adding four police officers this
budget. The City has a back log of sidewalk requests that we are trying to get caught up
with. The City is investing in staff by adding more staff where critical. The last couple of
years the budget only allowed the City to give staff a 2% salary increase. This budget the
City is able to give a 3% cost of living increase. This is some of the highlights of what the
City is able to get from this budget.
Mayor Pro -Tem Moore stated the police fleet take home policy will allow a vehicle to
taken off the road periodically instead of running 24 hours, 7 days a week. Which in turn
the City will get more miles and more years in a vehicle.
Councilmember Carbone stated the question he heard is the residents would like to
know what they will be getting for going above the rollback tax rate.
City Manager Clay Pearson stated the City will be trying to get the maintenance for streets
and sidewalks to where it should be, funds for future fleet replacement and hiring staffing
for Community Development. The City's Fund Balance is just above minimum and that
does not feel good, so we will add funds to the Fund Balance. The City is behind on facility
maintenance. He stated yesterday he received a long list of maintenance just to keep the '
air conditioning running.
Page 2 of 4 — 8/29/2016
Councilmember Ordeneaux stated he ran for re-election last year and told everyone he
' wanted to raise the tax rate. He stated his argument regarding this has been to invest in
the City's infrastructure. If we don't invest we are setting Pearland up to fail. If the City
continues to budget the way we are budgeting and spending the way we are spending,
Pearland will look like the Hobby area. For those that live on a fixed income and 65 years
old or older, you can defer the payment of taxes. The problem is the way it is set up now
is charged at 8%. He is hoping the state will look at that to help relieve some of that month
to month. When the home is sold the taxes will come out of the estate. He further stated
he does not want to pay higher property taxes than anyone else does, but he does not
mind paying higher property tax to keep Pearland the City it is. He wants to do what needs
to be done to maintain the City's investment and infrastructure.
Councilmember Perez stated Council would prefer residents did not have to pay higher
taxes, but Council would also like to be able to explain to residents why their sidewalks
are not being repaired or why areas are continually flooding over and over. Council would
like to address those issues, but the City does not have the revenue to do it. It is
something this body has to balance is how does Council get to the lowest tax rate possible
to provide the services the residents deserve and to keep their property values and
investments where they want them to be. Council can try to get to balance the budget, by
generating the amount of revenue to pay the expenditures. Or we can reduce the tax rate
to where we are not generating enough revenue for the expenditures and continue to go
into debt. He further stated Council struggles with this decision.
' Mayor Pro -Tem Moore asked what would extending the homestead exemption do for the
tax rate.
City Manager Clay Pearson stated the City has to have a certain amount of revenue
coming in to pay for the expenditures. The vast majority of our taxable value is residential,
65 or 70%. If you raise the homestead exemption further that would be less for the City
and the City would be setting itself up. The funds have got to come from somewhere.
Mayor Pro -Tem Moore asked what it would take to get a petition against the proposed
tax rate.
City Attorney Darrin Coker stated approximanly 4,600 valid signatures from registered
voters would need to be gathered within a 90 day period. The signatures would be
submitted to the City Secretary's office who would validate the signatures over a 20 day
period. Once the signatures are validated Council would be required to call a meeting
within 30 to 90 days.
Councilmember Carbone asked for an overview of the projects involving the water and
wastewater projects.
Assistant City Manager Trent Epperson gave an overview of the projects involving the
' water and wastewater. He further stated the City is increasing the operating budget to
maintain the equipment and systems at the water/wastewater plants.
Page 3 of 4 — 8/29/2016
Councilmember Reed stated at the end of the day the tax rate has gone down from
$0.7053 cents per $100 valuation to $0.6812 cents per $100 valuation. He further stated ,
we should look at the value we are getting from the $0.6812.
Mayor Pro -Tem Moore stated if there is extra funds in the budget he would like to see it
go to the street maintenance fund.
Councilmember Carbone stated there are two pieces of the puzzle, revenue and
expenses. He stated Council has not spent 20 or 30 minutes this whole budget cycle
talking about cutting expenses, but raising revenue. He would rather see Council focus
on trying to cut expenses to get down to the rollback rate.
Councilmember Ordeneaux stated Council had two Saturday workshops, at each
workshop he asked Council where they wanted to cut the budget. He further stated he
heard to pay off less debt, which is not a spending cut. He stated he has named several
items that he would like to cut. If Council is not going to make any cuts, the only option
he has is to make sure the City invests, maintain what the City has, and bring in more
revenue.
Councilmember Hill stated this is a rate decrease. The City cannot control the property
values going up. He stated it was said since property values went up to offset the tax rate
enough to take it back to the effective tax rate. He stated early on he got heart burn to go
above the rollback tax rate. He further stated it will be a tax increase due to property '
values.
Councilmember Carbone asked for clarification regarding the amounts of Sidewalk
Maintenance and Facilities Maintenance. He asked staff by the next budget meeting if the
power point could be clearer because he could see where it could be confusing.
Meeting was adjourned at 8:11 p.m.
Minutes approved as submitted and/or corrected this the 1011 day of October, A.D., 2016
Tom Reid
Mayor
ATTEST:
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I
d
MINUTES OF A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, HELD ON MONDAY, AUGUST 29, 2016, AT 6:30 P.M. IN THE
COUNCIL CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
Mayor Reid called the meeting to order at 8:14 p.m. with the following present:
Mayor
Mayor Pro -Tem
Councilmember
Councilmember
Councilmember
Councilmember
Councilmember
City Manager
City Attorney
City Secretary
Tom Reid
Gary Moore
Tony Carbone
Derrick Reed
Keith Ordeneaux
Greg Hill
Trent Perez
Clay Pearson
Darrin Coker
Young Lorfing
Others in attendance: Jon Branson Deputy City Manager; Matt Buchanan President of
Pearland Economic Development Corporation; J.C. Doyle Police Chief; Trent Epperson
Assistant City Manager; Michelle Graham Director of Human Resource; Tara Kilpatrick
Budget Officer; Lata Krishnarao Director of Community Development; Chris Orlea
Director of Parks and Recreation; Cynthia Pearson Director of Finance; Eric Wilson Public
Works Director; Sparkle Anderson Communications Director; Joel Hardy Grants
Coordinator; Jennifer Huhn Court Administrator; Richard Mancilla Interim City Engineer;
John McCarter Management Assistant; Daniel McGhinnis Chief Information Officer; Rick
Overgaard Assistant Finance Director; Lawrence Provins Deputy City Attorney; Johnny
Spires Assistant Police Chief.
Call to Order
Mayor Reid called for a recess at 8:14 p.m.
Mayor Reid called the Public Hearing back to order at 8:25 p.m.
Purpose of Hearing — Public Hearing on the Proposed 2016 Tax Rate for the 2016-2017
Budget.
Staff Review — Proposed 2016 Tax Rate for the 2016 — 2017 Budget.
City Manager Clay Pearson stated pursuant to Truth -in -Taxation laws, taxing units must
hold two public hearings and provide for a publication stating the dates, time and place of
the public hearings before adopting a tax rate that exceeds the rollback rate or the
effective tax rate, whichever is lower.
Page 1 of 3 — 8/29/2016
Budget Officer Tara Kilpatrick presented an overview on the proposed 2016 Tax Rate for
the 2016 — 2017 Budget. '
Citizen Comments
Charles McMurry, 5209 Spring Branch Drive, addressed Council stating he agrees with
Councilmember Ordeneaux stating the City needs to invest in the infrastructure. The City
is facing deterioration now. I drive around and see streets and the sewer construction not
being maintained. He stated unless there is a true savings in the City's budget the
residents are going to have to accept the tax rate.
Jesus Bustamante, 3804 Dunlay Drive, addressed Council stating the City needs to invest
in the infrastructure. He further stated if residents cannot accept the tax rate now it is only
going to get worse.
Vicky Smith, 2324 Da Vinci Drive, addressed Council stating she has not lived in Pearland
very long, but when she buys a car she only buys what she can afford. She stated the
budget should be evaluated before taking on more than what the City has funds for. She
stated she looked at the transparent financials and was a little confused. She would like
clarification because to her transparency means she should know what those things are.
Councilmember Perez stated with respect to the studies he does not think all of them are
necessary. He stated he appreciated everyone that came forward with their comments '
and concerns. He further stated the City has a base level of expenditures and a base
level of services and the City does not spend enough to meet the base level of services.
Councilmember Hill stated the City will be putting $2,000,000 back to pay off short term
debt.
Councilmember Reed stated he has questions regarding the water rate increase, he will
wait for the Special meeting to discuss it.
Discussion ensued between Councilmember Carbone and City Manager Clay Pearson
regarding adopting the tax rate.
Discussion ensued between Mayor Pro -Tem Moore and City Manager Clay Pearson
regarding items cut from the budget to go down to the rollback tax rate.
Discussion ensued between Councilmember Hill and City Attorney Darrin Coker
regarding if the tax rate failed on the ballot the tax rate would be what Council originally
proposed.
Discussion ensued between Councilmember Carbone and City Attorney Darrin Coker
regarding a majority of Council voting to approve the City budget.
Page 2 of 3 — 8/29/2016
Meeting was adjourned at 8:51 p.m.
' Minutes approved as submitted and/or corrected this the 101" day of October, A.D., 2016.
Tom Reid
Mayor
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