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Home My WebLink About09-29-10 TC MinMINUTES OF TOWN TOWN COUNCIL REGULAR MEETING September 29, 2010 PRESENT: Mayor Laura Wheat and Council Members Tim Brittan, Clif Cox, Carol Langdon and Rick Rennhack. OTHERSESE Ta Town Manager Tom Brymer, Town Attorney L. Stan Lowry, Assistant to the Town Manager (and Acting Town Secretary) Ginger Awtry, Public Works Director Jarrod Greenwood, Municipal Court Administrator Amanda DeGan, Facilities and Recreation Director Troy Meyer, Finance Director Debbie Piper, Interim Fire Chief Richard Whitten, Planning and Development Director Eddie Edwards, Director of Human Resources and Administrative Services Todd Wood, Senior Administrative Assistant Trish Landers, Westlake Academy Administrative Coordinator Ben Nibarger and Management Intern Scott Dixon. Mayor Laura Wheat called the workshop to order at 5:40 p.m. 2. DISCUSS AND REVIEW OF CONSENT AGENDA ITEMS FROM SEPTEMBER 29, 2010, COUNCIL REGULAR MEETING AGENDA. Mayor Wheat asked the Council Members if they had any comments concerning items on the Regular Meeting's consent agenda. Council Member Clif Cox mentioned that there were a few typographical errors in the minutes presented that he would like to see corrected. Other Council Members agreed and asked that they be corrected prior to posting as approved. The Council conducted will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: Town Council Minutes 09/29/10 Page 1 of 9 a. Pursuant to Texas Government Code Section 551.087: Deliberation Regarding Economic Development Negotiations —The Town Council will deliberate the offer of a financial or other incentive to a business prospect. Mayor Wheat reconvened the meeting at 6:28 p.m. IL 'UVOW44� 1,4180:111111FAMUN, .411:7-11111111 1.111 pl. J4,1111r, Mayor Wheat explained to the Council Members that the best process for the workshop and meeting agenda is for the Council to discuss and decide want they want to do with the budget numbers and possible ad valorem tax while in the workshop. This is so the related motion and possible tax rate decision can be finalized and set in the regular meeting. Town Manager Tom Brymer elaborated on this process and went on to explain the layout of the proposed budget numbers and scenarios as requested and presented for their review and discussion. The Town Council was asked to walk through the different scenarios presented, including possible tax rates (anywhere from 0% to 25%) to help them in their decision to implement an ad valorem tax and if so, at what rate to achieve optimum financial feasibility. Town Manager Brymer continued to explain to the Council Members that the latest handouts presented to them contain four different scenarios and have modified Capital Improvement Program (CIP) numbers, along with a summary sheet to help differentiate between them. Mr. Brymer went on to explain that these additional scenarios were the newest ones requested/discussed at the September 23, 2010, meeting. Council and Staff began walking through the different scenarios, budget numbers and CIP and a lengthy discussion began. Items discussed were as follows: setting of an ad valorem tax rate with understanding of the rate division into Interest and Sinking (I&S) and Maintenance & Operations (M&O) rates; effects of raising and lowering the different rates; possible roll back of rates; and debt restructuring. Financial Investment Consultant Tom Lawrence was present at the workshop and called upon by the Council and Town Manager to answer the Council's specific questions and to gain a better understanding of bond rates, debt refinancing, restructuring, new issuance, current market, difference in bond ratings, refinancing on an annual basis, existing debt, etc. The discussion turned to capital projects and prioritization of them in conjunction with the potential tax revenue stream to fund. Topics discussed in detail included the following: immediate needs within the CP; street repairs; FM 1938 streetscaping; park improvements; trails; effects of further delay with CIP projects due to lack of revenue stream and poor economy; effects of spending down the General Fund year after year; Town Council Minutes 09/29/10 Page 2 of 9 Council Members Clif Cox and Rick Rennhack stated at various points during discussions their desire to wait one more year and reevaluate the need for an ad valorem tax every year because they are not convinced that it is a critical need this year. Council Members Langdon and Brittan stated at various points they believe it is the Council's fiduciary, legal and moral obligation to carry out the fiscal responsibility of the Town. They also stated their confidence that the budget has been scrubbed to reflect the Town's vision in a very conservative manner while applying the "excellence factor" across the board. Mayor Wheat stated she believes there are real costs in waiting another year and understands the magnitude of this tax decision but she does not believe it makes sense to continue another year of spending down the Fund Balance and pass off this decision another year. Town Manager Brymer stated he realizes the difficulty in this tax decision and the importance to stabilize the General Fund due to the volatile nature of the sales/use tax while addressing the capital needs in a fiscally responsible manner today, with proper planning and without jeopardizing the future of the Town and its assets. Mayor Wheat asked each Council Member where they stood on a property tax and possible rate, after all of this discussion, to ensure that they have a better idea of their direction regarding the approval of the budget and possible property tax during the regular meeting; reminding them that a decision on how to spend/prioritize dollars for the CIP does not have to be made during this meeting but a decision is necessary regarding the budget and possible ad valorem tax. llI!XI 11 111 ; 1 1 p H 10 0 0 16� �6* .1, �§: Mayor Laura Wheat called the meeting to order at 906 p.m. • Mayor Wheat led the pledge of allegiance to the United States and Texas flags. Presentation of the Scenic Cily Gold Level Certification — Director of Planning & Development Eddie Edwards provided background information and explained the significance of the gold level Scenic City award certification. He stated that Westlake was one of only four cities awarded a Gold rating in Texas. Mr. Edwards told the Town Council Minutes 09/29/10 Page 3 of 9 Council that he received many congratulatory comments at the award luncheon from others and how they were amazed that a city of Westlake's size and level of staffing could achieve the Gold level. Mayor Wheat joined staff members for a photo and offered her congratulations. She added how proud she is that we have met this achievement and appreciates the excellent work by our staff. Several citizens were in attendance and asked to address the Council regarding the possible implementation of an ad valorem tax. Those speaking are as follows: Wayne Stoltenberg of 2006 Rock Dove Court; Mr. Stoltenberg stated his appreciation to past and present Council Members for their willingness to address key issues such as improved infrastructure needs instead of building a community center or new town hall and his appreciation for bringing Westlake Academy to the community. Secondly, Mr. Stoltenberg shared the reasons why he moved to Westlake and stated that he believes the school adds value to both the community and his property value. Thirdly, while he understands the economic climate and thoughts to now tax, he does feel it to be very noble to hold off and wait without spending any capital dollars. Allan Werst — 4035 Aspen Lane; Mr. Werst thanked the Council for the respectfulness of their words and actions during the entire process. He stated his reasons for moving to Westlake and of his opinion that we should wait one more year to implement a tax and see where we are in our financial sustainability at that time. Rob Scott of 1820 Broken Bend Drive; Mr. Scott thanked the Council for taking on the difficult topic of taxes. He stated he understood the need for a property tax and his concerns have more to do with how we will use the tax dollars and prioritize our spending. David Rollins of 13239 Roanoke Road; Mr. Rollins feels the Council is already resigned to implementing a tax and feels voting for this is the easy way out. He is opposed to the property tax and would like to see the Town Council and Staff strives to be more creative and apply the IB characteristics that we ask our Academy students to model. Darcy Anderson of 2005 Wood Thrush Court; Mr. Anderson thanked the Council for their openness, dialogue, transparency and all they are doing with this tough tax decision. Mr. Anderson stated he believes in the vision statement but we do have a unique situation with the school, He asked the Council to please look to the future as we move forward and carefully consider before taking on new debt and that we work aggressively to reduce or repeal any tax that may be put in place tonight. John Miller of 1205 Perdenales Trail; Mr. Miller stated he too, feels Westlake has a fine Council and appreciates their service. He added that he understands while we may not need to delay the property tax, he would like to set the rate where it is adequate to remain in place for years to come and avoid coming back every year to raise the rate. Mr. Miller also shared where he believes the potential revenue should be spent first. Mayor Wheat thanked all of the citizens for their comments and added that she is very proud to serve beside these Council Members and the Town staff. Town Council Minutes 09/29/10 Page 4 of 9 a. Consider approval of the minutes from the meeting held on August 25, 2010. b. Consider approval of the minutes from the meeting held on August 30, 2010. c. Consider approval of the minutes from the meeting held on September 8, 2010. d. Consider approval of the minutes from the meeting held on September 16, 2010. e. Consider approval of Resolution 10-26, Appointing members to the Westlake Academy Foundation Board. f. Consideration of Ordinance 644, Approving Rates and a Settlement Agreement with Atmos Mid -Tex. g. Consider approval of Resolution 10-27, approving the destruction of the Westlake Academy records in compliance with the Texas State Library and Archive Commission schedules. Council Member Rick Rennhack made a motion to approve items a through . of the consent agenda. Council Member Carol Langdon seconded the motion. The motion carried by a vote of 4-0. S. CONDUCT A PUBLIC HEARING AND CONSIDERATION OF ORDINANCE 645, ADOPTING • OF REVISED BUDGET FORYEAR ENDING SEPTEMBER 30, 2010, AND ADOPTING THE PROPOSED BUDGET FOR FISCAL • ENDING SEPTEMBER 30r 2011,PROVIDING AUTHORIZATION TO THE TOWN MANAGER TO APPROVE APPROPRIATED FUNDS UP TO $25,000. Mayor Wheat opened the Public Hearing at 9:34 p.m. She acknowledged that it seems backwards to approve the budget prior • a decision on - property but the State law requires order. Townr - Town Manager Tom Brymer began this agenda item discussion with a PowerPoint presentation summarizing the route taken to -date with Westlake's financial sustainability. This presentation included historical revenue streams/trends, operating and capital expenditures history, financial forecast, resident survey results, and expressing the Town Staff's desire to continue performing all services at the highest level while keeping our resources aligned. Mayor Wheat closed the public hearing at 9,42 with no one wishing to speak. Mayor Wheat asked all Council Members to look again at the different tax rate scenarios and budget numbers presented in final preparation of their decision. She went through each scenario one by one, asking for every Council Members" insight and final thoughts before the vote.. A lengthy discussion ensued with the Mayor, Council Members, Town Manager and Finance Director Debbie Piper walking through the various scenarios and the CTP. Mayor Wheat summarized the discussion stating that it appears we now have four (4) people on Town Council Minutes 09/29/10 Page 5 of 9 the Council agreeing with the fiduciary responsibility that a minimum tax is necessary but there is a disagreement in the timing of the implementation. She also stated that while it is not a popular decision, it is one that has been discussed for several years now and is necessary to maintain Westlake's vision and its future. MOTION: Council Member Tim Brittan made a motion to approve Ordinance 645 as presented, including the authorization to the Town Manager to approve appropriated fund up to $25, 000, and replacing the CIP schedule reflected in Scenario #3 as an Exhibit to include the following changes: Trail/Park improvements and West Parking improvements moved to Unfunded Projects and Temporary Classrooms moved to the WA budget. Council Member Langdon seconded the motion. The motion carried by a vote of 4-0. 6. CONSIDERATION AND DISCUSSION OF ORDINANCE 646, LEVYING MUNICIPAL AD VALOREM TAXES FOR THE 2010 YEAR IN ACCORDANCE WITH THE 2010- 2011 FISCAL YEAR BUDGET. Town Manager Brymer introduced the ordinance, explained the exemptions, the estimated collection rate of 98%, and presented a short PowerPoint presentation to help summarize the issues at hand. Discussion ensued (including a whiteboard exercise) among the Mayor and Council, Town Manager, Town Attorney L. Stan Lowry and Financial Consultant Tom Lawrence regarding all of the possible tax rates and nuances when setting I&S and M&O rates so the Council can determine the lowest rate needed. Additional opinions and topics were discussed in length included the following: exemptions allowed, future action to rebate and/or lower the tax, various tax laws, rollback specifics, Truth in Taxation, future debt/bond issuance, 413 funds, timing and notifications regarding Certificates of Obligation, and future revenue streams. Multiple discussions continued regarding the setting of a tax rate tonight and a consensus was obtained of all Council Members that a property tax is inevitable but the timing to implement is still not agreed upon. MOTION: Council Member Clif Cox moved to not implement a property tax and explore a property tax in the coming year. Council Member Rennhack seconded the motion. The motion failed due to a 2-3 vote. Another discussion took place to set the particular rates of the ad valorem tax and all Council Members agreed with the following: an I&S rate of $0.0039 and a M&O rate of at $0.1562 for a total ad valorem tax rate of $0.1601 per $100 valuation. MOTION: Council Member Brittan made a motion to approve Ordinance 646 as presented with an I&S rate of $0.0039 and an M&O rate of $0.1562 for a total ad valorem tax rate of $0.1601. Council Member Langdon seconded the motion. The motion carried by a vote of 3-2. Town Attorney Lowry asked for a record of the votes Town Council Minutes 09129/10 Page 6 of 9 by roll call. They are as follows: Ayes: Council Members Brittan, Langdon and Mayor Wheat; Nays: Council Member Cox and Rennhack 7. CONSIDERATION OF RESOLUTION 10-28, RATIFYING THE MUNICIPAL AD VALOREM TAX INCREASE. Town Attorney Lowry explained this item's provision in the Texas tax code as a required step; effectively a ratification for tracking properly in the tax code. He explained that since Westlake previously had a zero tax rate, we must slightly modify the way the tax code reads and do so by a specific motion in order to comply with the tax code. MOTION: Council Member Langdon made a motion to adopt Resolution 10-28 moving that the property tax rate be increased by the adoption of the tax rate of $0.1601 which is in increase from zero to $0.1601 1 cannot give a percentage of zero which is more specifically described which is more described in Ordinance 646. Council Member Brittan seconded the motion. The motion carried by a vote of 3-2. Council Member Cox and Rennhack opposed. r3V ON waiL91 IS 9,; PKK9111111 11111:1010ON1161 oil PILY'ril 1141'.4:1 rmzwfflffi� MOTION: Council Member Cox made a motion to approve Resolution 1 29. Council Member Brittan seconded the motion. The moti carried by a vote of 4-0. CONSIDERATION AND DISCUSSION OF RESOLUTION 10-30, APPROVING A CONTRACT WITH LINEBARGER, GOGGAN, BLAIR & SAMPSON, LLP FOR DELINQUENT TAX COLLECTION. MOTION- Council Member Rennhack made a motion to approve Resolution 10-30. Council Member Cox seconded the motion. The motion carried by a vote of 4-0. •001,14440 a r4 it jr-x44,11"s-IF-A 4 Itelvill :1 I'll wa 111 a 141 mxlyu COMM*] MOTION: Council Member Cox made a motion to approve Resolution 10- 31. Council Member Rennhack seconded the motion. The motion carried by a vote of 4-0. a. Discussion regarding the formation of and direction to be given to the Town of Westlake Green Team. Town Council Minutes 09/29/10 Page 7 of 9 Mayor Wheat submitted this item. Council Member Langdon made a motion to include this item on a future agenda and Council Member Rennhack seconded the motion. b. Policy considerations for use of Westlake Academy facilities during the summer months. Mayor Wheat submitted this item. Council Member Rennhack made a motion to include this item on a future agenda and Council Member Langdon seconded the motion. Town Manager Brymer reiterated the Council's earlier comments to invite Tom Lawrence back in the near future to discuss future debt issuance and for Town Staff to look into the 4B Funds usage restrictions and allowances to better utilize this funding source. - Town Council Meeting October 25, 2010 - Westlake Historical Preservation Society (WHPS) Living History Presentation October 26, 2010 (7:00 pm, WA Performance Hall) - Annual Texas Municipal League (TML) Conference October 26-29, 2010 (Corpus Christi, TX) - Annual WHPS Meeting November 4, 2010 (Home of Wayne and Karen Stoltenberg) - Town Council Meeting November 8, 2010 The Council conducted a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: Pursuant to Texas Government Code Section 551.087: Deliberation Regarding Economic Development Negotiations — The Town Council will deliberate the offer of a financial or other incentive to a business prospect. MOTION: Council Member Rennhack made a motion to approve Resolution 10-32, approving a Memo of Understanding and authorizing the Town Manager to enter into and execute an Economic Development Agreement with Solera Holdings. Council Member Langdon seconded the motion. The motion carried by a vote of 4-0. Town Council Minutes 09/29/10 Page 8 of 9 There being no further business before the Council, Mayor Wheat asked for a motion to adjourn the meeting. MOTION: Council Member Langdon made a motion to adjourn the meeting. Council Member Cox seconded the motion. The motion carried by a vote of 4-0. Mayor Wheat adjourned the meeting at 1:25 a.m. on Friday, September 30, 2010. Kelly) Edwards, Town Secretary Laura Wheat, Mayor Town Council Minutes 09/29/10 Page 9 of 9