2019-08-10 CITY COUNCIL SPECIAL MEETING MINUTESMINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, HELD ON SATURDAY, AUGUST 10, 2019, AT 8:30 A.M. IN THE COUNCIL
CHAMBERS, CITY HALL, 3519 LIBERTY DRIVE, PEARLAND, TEXAS.
Mayor Reid called the meeting to order 8:37 a.m. with the following present:
Mayor
Tom Reid
Mayor Pro -Tem
J. David Little
Councilmember
Luke Orlando
Councilmember
Gary Moore
Councilmember
Adrian Hernandez
Councilmember
Trent Perez
Councilmember
Woody Owens
City Manager
Clay Pearson
City Attorney
Darrin Coker
Interim City Secretary
Maria E. Rodriguez
Absent: Councilmember Reed.
Others in attendance: Jon Branson Deputy City Manager, Matt Buchanan President of EDC, Trent
Epperson Assistant City Manager, Michelle Graham Director of Human Resources, John
McDonald Director of Community Development, John McCarter Assistant Finance Director, Chris
Orlea Director of Parks and Recreation, Cynthia Pearson Director of Finance, Robert Upton
Director of Engineering ad Capital Projects, Clarence Wittwer Director of Public Works, Andrea
Brinkley Assistant Director of Public Works, Joel Hardy Grants — Special Projects Administrator,
Jennifer Huhn Court Administrator, Skipper Jones Assistant Director of Capital Projects, Joshua
Lee Communications Director, Daniel McGhinnis Chief Information Officer and Lawrence Provins
Deputy City Attorney.
NEW BUSINESS
Presentation: Regarding the Fiscal Year 2020 Budget and Multi -Year Financial Plan Budget
Workshop #1 — Overview, Highlights, General Fund, Debt Service and Property Tax.
City Manager Clay Pearson presented to Council on Property Tax Revenue, General Fund, Sales
Tax and Debt Service.
Assistant Finance Director John McCarter presented to Council on Strategic Priorities, General
Fund Expenditures, revenue from Permits, proposed Property Tax Rate, Debt Service Fund and
provided an overview of the proposed Budget.
Conversation ensued between Mayor Pro -Tem Little and City Manager Clay Pearson regarding
plans to increase the number of requested new positions in the City and proposed property tax
increase.
Councilmember Owens stated concern regarding the City taking on additional debt services in a
variety of different areas that will become recurring debt yearly.
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Councilmember Hernandez stated there may be other ways to complete the proposed repair of
the bridge at Independence Park and that would free funds to be added to streets and sidewalks.
Council Input and Discussion: Information requests for Budget Discussion #2. any formal
changes by vote.
Councilmember Perez stated streets and sidewalks is not being funded the way it should be due
to lack of funds. He further stated concern for the City not being able to keep up with the paving
rate scale as needed.
Councilmember Moore stated there is not room to move funds from one area to the other without
leaving a deficit and asked staff why there is a decrease in the amount of sales tax revenue.
Conversation ensued between Councilmember Moore and Parks and Recreation Director Chris
Orlea regarding the duties of the proposed Parks Coordinator position.
Mayor Pro -Tem Little asked staff if more funds can be allocated to the streets and sidewalks when
the FEMA funds are received.
City Manager Clay Pearson stated when funds are received from FEMA the plan is to allocate a
portion to streets and sidewalks.
Council Input and Discussion: Policy direction on preparing subsequent Maximum Property
Tax Rate publication for discussion and vote.
Councilmember Orlando stated concern for the rise in tax rates and would like to see relief for
homeowners. He further stated he would like staff to provide examples of roads that have lower
pavement ratings so that Council has something to go off.
Mayor Pro -Tem Little stated there is an increase in property taxes from the year 2020 to year
2022 and would like to know what is causing the large increase.
City Manager Clay Pearson stated that is due to the projected rates and the amounts needed to
service the debt.
Presentation: Water/Sewer Fund, Internal Service Funds, Special Revenue Funds, Multi -Year
Forecast.
Senior Budget Analyst Neelie Walker addressed Council and presented the Enterprise Fund
Budget, including additional staffing highlights.
Budget Analyst Rachel Winslow presented to Council the Internal Service Funds, Special
Revenue Funds.
Assistant Finance Director John McCarter presented to Council on the Pearland Economic
Development Corporation fund and fee updates as a part of the Budget Process.
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Council Input and Discussion: Regarding proposed Budget including information requests for
session #2; any formal changes by vote.
Councilmember Perez stated there needs to be plan of what to do with additional unused funds.
He further asked that staff provide a breakdown of the areas the traffic fund is being used.
Conversation ensued between Councilmember Perez, City Manager Clay Pearson and Assistant
City Manager Trent Epperson regarding the impact fees for wastewater and how those fees can
be used to create revenue for the City of Pearland.
Conversation ensued between Council and Assistant Finance Director John McCarter regarding
the Water and Sewer rates, ways to save the residents money on rates and the need for a
breakdown of the Enterprise fund expenses.
Councilmember Moore stated if the City is going to buy technology and then hire people to work
that technology there is not a savings.
City Manager Clay Pearson stated the additional staff has been for already understaffed
departments and the technology has no impact in needing new employees.
Councilmember Moore stated water billing is higher than people would like to pay, and it is due
to having to increase Waterwater Treatment Plants when large developments move in that should
be the ones to pay the bulk of those fees. He further stated the water rate increase is not needed
when there are overages in other revenues.
Councilmember Owens stated increasing impact fees could deter businesses from coming to the
City of Pearland. He further stated before the City brings on the proposed Freshwater Treatment
Plan, the cost for employees and cost of running the plant needs to be looked at.
Public Comment: None
Staff Follow up and Next Steps: None.
ADJOURNMENT
Meeting was adjourned at 6:25 p.m.
Minutes approved as submitted and/or corrected this the 13th da of J 2020.
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Tom Reid
Mayor
Interim Qty Secretary
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