2018-09-10 CITY COUNCIL PUBLIC HEARING MEETING MINUTES1
MINUTES OF. A PUBLIC HEARING OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, HELD ON MONDAY, SEPTEMBER 10, 2018, 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
Councilmember
City Manager
City Attorney
Deputy City Secretary
Tom Reid
Trent Perez
Tony Carbone
Derrick Reed
Adrian Hernandez
J. David Little
Gary Moore
Woody Owens
Clay Pearson
Darrin Coker
Maria Rodriguez
Others in attendance: Daniel Baum Assistant Fire Chief, Jon Branson Deputy City Manager, Matt
Buchanan Director of EDC, Trent Epperson Assistant City Manager, Michelle Graham Director of
Human Resources, Jimantanae McBride City Planner, John McCarter Budget & Procurement
Manager, Chris Orlea Director of Parks and Recreation, Cynthia Pearson Director of Finance,
Kim Sinistore Executive Director CVB, Johnny Spires Police Chief, Robert Upton Director of
Engineering, Andrea Brinkley Assistant Director of Public Works, Jennifer Huhn Court
Administrator, Daniel McGhinnis Chief Information Officer, Rhonda Daugherty Assistant Director
of Finance and Lawrence Provins Deputy City Attorney.
PUBLIC HEARING:
Public Hearing on the Proposed Fiscal Year 2018-2019 Budget.
STAFF REVIEW:
City Manager Clay Pearson stated this is the official Public Hearing for the City's Fiscal Year 2019
Budget that begins October 1, 2018 and made a presentation for the Public outlining the proposed
Fiscal Year Budget.
Budget Officer John McCarter stated the completion of publication providing notice of the City's
intent to hold a Public Hearing, including the dates and times. He further presented more
highlights of the proposed Fiscal Year 2019 Budget for the public.
CITIZEN COMMENTS:
Max Krchnak, no address provided, addressed Council and stated he felt the Capital
Development Group is causing unnecessary inflation and spoke on acreage sold by the City of
Pearland.
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Diane Butcher, 1922 Prairie Creek, addressed Council and spoke of a Park in her subdivision,
Woodcreek, that she would like the City to develop and create a play area.
Jimmy Davis, 5004 Colmesneil Drive, addressed Council and expressed his concerns with the
current proposed budget for Streets and Sidewalks.
COUNCIL/STAFF DISCUSSION:
Councilmember Carbone stated the meetings on September 17th and September 24th are both
Council meetings and will include time for the Public to comment.
Conversation ensued between Councilmember Carbone and President of EDC Matt Buchanan
regarding the different proposed Budgets for the Economic Development Corporation (EDC),
citing the changes are in the forecast and reallocation of funds.
Councilmember Reed stated he is in agreement with the citizen that spoke in regards to the park
in her subdivision and hopes that something- can be done since the area has been in need for
some time now.
City Manager Clay Pearson stated there was a property sale on Broadway Street that the City
dedicated the funds from to purchase equipment to be installed at that park.
Councilmember Reed stated the money that is being rolled over by the EDC should be used to
pay off debts rather than be held on to and not used.
President of EDC Matt Buchanan stated the money will be used, is a part of the Multi -Year plan
and as years pass the money allocation will have to be .determined for projects at that time. He
further stated if the City depletes those funds it will have to go out and reissue debt, which needs
to be avoided.
Councilmember Reed stated he has issue with holding on to sums of money that could be used,
but more than likely will not be used. He further stated he would like staff to provide whether that
money is gaining interest.
Conversation ensued between Councilmember Reed and President of EDC Matt Buchanan
regarding the amount of interest the money is gaining now versus the amount of finance charges
the City is paying, also discussed were ways to cut down on cost for jobs staff could do.
Councilmember Reed asked staff if the decision to use the holdover from EDC to pay down debt
can be brought to Council or does it have to be voted on by the EDC Board first.
City Attorney Darrin Coker stated the EDC Board would. have to be presented with it prior to it
going in front of Council.
Mayor Pro -Tem Perez explained the effective tax rate, the City is collecting what it has in the past
and resident bills should stay the same. He further stated a playground was awarded for the Park
in the Woodcreek Subdivision.
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Director of Parks and Recreation Chris Orlea stated when the contractor came in with the bid it
was over the threshold and needed to now go out for formal bids, be approved by Council and
then the bid awarded. He further stated the contractor has agreed to expedite the project and
more information will be shared with residents, timeline for the trail is four to six weeks with
equipment afterward.
Mayor Pro -Tem Perez stated the streets and sidewalks projects is underfunded but with the
present Budget it cannot be at the level it needs to be. He further stated there should be an
Enterprise fund solely for the repair and maintenance of streets and sidewalks. Mayor Pro -Tem
Perez stated he and Councilmember Carbone have looked further into the EDC budget and now
he agrees with Councilmember Carbone that the funds are not being used to the highest level for
the City. He further stated there are funds being earmarked for projects that are not going to
happen and are not part of the Five Year Capital Improvement Plan so money should not be held
aside for those projects. Mayor Pro -Tem Perez stated the funds set aside in the EDC budget
should be used to pay off debts and not held in reserves.
Councilmember Hernandez stated an Administration should be established for Trails so that it is
not just looked at from a beautification standpoint but from a quality of life standpoint, which would
be better suited to the Parks Department and not EDC. He further stated there is not a need to
have so much set aside in the EDC budget when the City could be paying off debt and there are
no plans to do the projects. Councilmember Hernandez stated there needs to be some thought
put into how the City could save funds, for example using existing avenues to market rather than
creating new ones. He further stated his support for project oriented funding, streets and
sidewalks would be a good start.
Councilmember Little stated the City does not have a tax revenue increase but does have a tax
rate increase. He further stated his support of Councilmembers who are wanting EDC funds to
be used to pay off debt rather than the EDC holding onto the funds.
Councilmember Moore stated some of the projects in the Parks Capital Improvement Plan could
be deferred to later dates. He further stated the City should pay down debt with the EDC set
aside and does not agree that a Convention Center is necessary. Councilmember Moore stated
he is opposed to some of the projects being.so'soon in the timeline outlined in the Budget, citing
the 2007 Bonds came with a tax increase that did not happen which cost the City. He further
stated the City needs to hold back and let the funds catch up, projects need to be prioritized.
Councilmember Owens stated some projects do need to be held back and let other improvements
occur first. He further stated his support of fellow Councilmembers wanting to use EDC funds to
pay down debts rather than hold funds for future projects that may not happen. Councilmember
Owens stated the projected debt for Capital Improvements and Infrastructure Assets
Recapitalization is high and would caution against issuing more debt. He further stated the City
has plans for repairs to Mykawa Road, however TxDOT already has plans for the same road.
Assistant City Manager Trent Epperson stated TxDOT is funding 80% of design and acquisition,
the City would only be responsible to TxDOT for the remaining 20% on the project prior to the
road being laid. He further stated TxDOT would also manage the construction project.
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Councilmember Owens stated the Budget shows additional positions incrementally through the
year but for next year's budget the positions will need to be worked into the budget for a full twelve
months. He further stated funds should be moved to more important projects and put off some of
the other projects.
Mayor Reid spoke about the growth of Pearland and the expansion to business.
City Manager Clay Pearson stated there are two more meetings to decide the Budget and staff
will continue to work to amend to Budget.
ADJOURNMENT
Meeting was adjourned at 8:05 p.m.
Minutes approved as submitted and/or corrected this the 22"d day of October, A.D., 2018.
ATTEST:
Tom Reid
Mayor
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