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HomeMy WebLinkAbout08-24-20 TC MinMINUTES OF THE TOWN OF WESTLAKE, TEXAS TOWN COUNCIL MEETING August 24, 2020 In accordance with Order of the Office of the Governor issued March 16, 2020 and March 19, 2020, the Town Council of the Town of Westlake conducted its regular meeting following the Board of Trustees meeting at 5:00 p.m. on Monday, August 24, 2020 by video and telephone conference in order to advance the public health goal of limiting face-to-face meetings (also called "social distancing") to slow the spread of the Coronavirus (COVID-19). There was no public access to the physical location described above. A recording of the telephonic meeting was made and is available to the public. PRESENT: Mayor Laura Wheat and Council Members Carol Langdon, Greg Goble, Alesa Belvedere, and Rajiv Trivedi. Rick Rennhack joined the meeting at 5:20 p.m. ABSENT: OTHERS PRESENT: Town Manager Amanda DeGan, Deputy Town Manager Noah Simon, Assistant Town Manager Jarrod Greenwood, Town Attorney Stan Lowry, Town Secretary Todd Wood, Director of Information Technology Jason Power, Director of Finance Debbie Piper, Director of Facilities & Public Works Troy Meyer, Director of Communications Ginger Awtry, Communications Manager Jon Sasser, Business Manager Marlene Rutledge and Finance & Budget Analyst Kelsey Wong. Regular Session 1. CALL TO ORDER Mayor Wheat called the Regular Session to order at 5:12 p.m. 2. CITIZEN COMMENTS Mayor Wheat provided a brief summary of instructions to the public for citizen comments. No one addressed the Town Council. TC Minutes — 8/24/20 Page 1 of 6 3. ITEMS OF COMMUNITY INTEREST Communications Manager Jon Sasser provided an update on this item. Office closure: Westlake Town Hall will be closed on Monday, September 71 in observance of Labor Day. Although the municipal offices will be closed, waste and recycling pickup will not be affected. Upcoming meetings: The next Town Council and Board of Trustees meeting is scheduled for September 14, 2020. Coffee and Conversation with the Mayor: This event is tentatively scheduled for September 14, 2020. Westlake Classic Car Show: The 10th annual Westlake Classic Car Show is scheduled to be held on October 17, 2020. Westlake Academy: Town Manager/Superintendent Amanda DeGan indicated that the first day of on -campus instruction for students at Westlake Academy will be September 21, 2020. Any delay in this date would need to be approved by the Board of Trustees. Mayor Wheat asked if there were any metrics that would be used in determining additional delays to the planned return date. Mrs. Degan replied that there were, stating first that the Public Health Plan that has been developed would be submitted to local health officials. While this is not required, these plans help to demonstrate whether additional closures are warranted at the County level based on the protocols that have been put in place. This also helps the County to provide proper guidance to school leadership, if necessary. Mayor Wheat then asked if the Westlake Classic Car Show would be held if it were scheduled for this weekend. Mrs. DeGan said that it would not. 4. EXECUTIVE SESSION The Town Council convened into Executive Session at 5:18 p.m. The Council will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.087 - Deliberation Regarding Economic Development Negotiations (1) to discuss or deliberate regarding commercial or financial information that the governmental body has received from a business prospect that the governmental body seeks to have locate, stay, or expand in or near the territory of the governmental body and with which the governmental body is conducting economic development negotiations; or (2) to deliberate the offer of a financial or other incentive to a business prospect described by Subdivision (1) for the following: - Front 44 - Entrada TC Minutes — 8/24/20 Page 2 of 6 b. Section 551.071(2) — Consultation with Town Attorney on a matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with this chapter: Resolution No. 00-19, a Contract with Hillwood Development Corporation Concerning the Design Engineering and Construction of the West Side Pump Station and the Dove Road Waterline. c. Section 551.071 Consultation with Attorney - to seek advice of counsel regarding Granada Homeowners' Association matters. S. RECONVENE MEETING Mayor Wheat reconvened the public meeting at 8:05 p.m. 6. TAKE ANY ACTION, IF NEEDED, FROM EXECUTIVE SESSION ITEMS. None. 7. CONSENT AGENDA: All items listed below are considered routine by the Town Council and will be enacted with one motion. There will be no separate discussion of items unless a Council Member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. a. Consider approval of the minutes from the meeting on June 8, 2020. b. Consider approval of Resolution 20-22 to approve the tax rolls for tax year 2020 on property within the Town; approving the estimated tax collection rate; and designating an official to calculate the no -new -revenue and voter -approval tax rates. c. Consider approval of Resolution 20-23, authorizing the donation of surplus Self - Contained Breathing Apparatus equipment (SCBAs) to Texas A&M Forest Service Helping Hands Program. MOTION: Council Member Belvedere made a motion to approve the consent agenda. Council Member Goble seconded the motion. The motion carried by a vote of 5-0. 8. DISCUSSION AND CONSIDERATION OF RESOLUTION 20-24, ADOPTING A MAXIMUM PROPOSED AD VALOREM TAX RATE, TAKE A RECORD VOTE, AND SETTING THE DATE FOR THE PUBLIC HEARING AND ADOPTION OF THE OPERATING BUDGET AND TAX RATE FOR FISCAL YEAR 2020-2021. Mrs. DeGan presented this item, noting that this year's budget did not have a "theme", unlike previous years. She began by explaining a new term that has resulted from the last legislative session, called the "No New Revenue Tax Rate", which replaces the former "Effective Tax Rate" term. This is the total rate calculated to raise the same amount of property tax revenue from the same properties. The term "Rollback Tax Rate" has now been replaced by the term "Voter Approval Tax Rate". This term is the highest tax rate that may be adopted without holding an election requiring voter approval, unless the De Minimis Tax Rate exceeds the Voter Approval Tax Rate. In previous years, this rate was limited to TC Minutes — 8/24/20 Page 3 of 6 an 8% percent increase from the prior year and is now limited to a 3.5% increase. Given the Town's current property tax rate of $0.1618 per $100 valuation, four property tax scenarios were explained in consideration in the FY 20/21 budget: 1. Current Tax Rate: $0.1618 2. No New Revenue Tax Rate (formerly, "Effective Tax Rate': $0.16809 3. Voter Approval Rate (formerly, "Rollback Tax Rate': $0.18969 4. De Minimis Rate: $0.20216 Mrs. DeGan noted that unless the current tax rate is adopted, the No New Revenue Tax Rate represents the smallest increase, and the average Westlake homeowner would pay an additional $101 annually in municipal property taxes. If the Town were to adopt the Voter Approval Tax Rate, it would represent nearly a 3.5% increase. In this scenario, the average Westlake homeowner would pay an additional $378 annually in municipal property taxes. Mrs. DeGan did not recommend adoption of the current tax rate for the upcoming year, as it could place the Town in a less secure financial position. The No New Tax Revenue Rate would allow the Town to remain steady. The Voter Approval Tax Rate would raise additional revenues and preserve more operating days into fund balance. She then stated that calculations were not made on the De Minimis Rate, as staff did not feel that previous Council direction would support the adoption of this rate. Mrs. Degan then presented the Financial Overview for all funds in the proposed FY 20/21 municipal budget, inclusive of a 2% employee pay increase. In this scenario, it is projected that $700k of the Town's fund balance would be used. This calculation also includes very conservative revenue projections, and Mrs. DeGan stated that staff is not convinced that development will occur as anticipated. If this occurs, the Town is likely to see an additional $800k-$1M reduction in development fees, and this is an area that we should be mindful of moving forward as conversations are continued. The General Fund Five -Year Forecast was then presented and showed a continual reduction of operating days through 2025. The ending fund balance using the No New Revenue Tax Rate in the FY 20/21 budget indicated that operating days would be reduced from 448 to 395, calculated at a cost of $28,795 per day. Mrs. Degan then presented a property tax rate comparison and explained the corresponding impact of each in the proposed FY 20/21 budget. If the Council were to adopt the No New Revenue Tax Rate, approximately $160k in additional revenue would be added to fund balance. In this scenario, staff would delay several capital projects and identify other expenditure reductions to mitigate the estimated $700k use of fund balance. If the Council were to adopt the Voter Approval Tax Rate, approximately $477k in additional revenue would be added to fund balance, and operating days are estimated to be reduced from 448 to 413. Adoption of the Voter Approval Tax Rate would retain an additional 17 operating days when compared to the No New Revenue Tax Rate. Mrs. DeGan then explained that this meeting's discussion would not set the tax rate. The Town Council is required to take a record vote, set a Public Hearing date, and consider the tax rate for the upcoming year. Staff recommended that the public notice should state that the maximum ad valorem rate would be $0.18969 per $100 valuation. This would allow the Council to have the flexibility to set a lower tax rate if they chose to do so, provided that TC Minutes — 8/24/20 Page 4 of 6 the rate did not exceed the maximum rate listed in the Public Hearing Notice. The Public Hearing Date, adoption of the FY 20/21 budget, and setting of the tax rate would be on the regular Town Council meeting agenda scheduled for September 14, 2020. Mrs. Degan then asked the Council for direction as to what should be posted in the Public Hearing Notice. Council Member Langdon asked if there was any wisdom in posting the higher De Minimis tax rate, as valuations have yet to be received from Denton County, although she was not suggesting that the Town adopt this rate. Mayor Wheat said she felt that posting this rate would appear high to the public. Council Member Trivedi stated that he felt it was best to stay in between the No New Revenue Tax Rate and the Voter Approval Tax Rate. Mayor Wheat then stated that while fund balance has decreased somewhat, the Town has positioned itself conservatively in the past to provide a buffer when there is a decrease in fund balance. Council Member Rennhack and Council Member Trivedi agreed. The consensus of the Council was to post the Voter Approval Tax Rate as the maximum rate for the Public Hearing Notice. MOTION: Council Member Rennhack made a motion to approve Resolution 20- 24, adopting a maximum proposed ad valorem tax rate of $0.18969, take a record vote, setting the date for the Public Hearing, and adoption of the operating budget and tax rate for fiscal year 2020-2021 on September 14, 2020. Council Member Goble seconded the motion. The motion carried by a vote of 5-0. 9. DISCUSSION AND CONSIDERATION OF ORDINANCE 912, UPDATING THE SOLANA PUBLIC IMPROVEMENT DISTRICT SERVICE AND ASSESSMENT PLAN AND ASSESSMENT ROLL 2020. Mary Petry from Petry & Associates presented this item. She began by stating that the PID Service and Assessment Plan is required to be updated every year. The primary purpose of the PID Service and Assessment Plan Update is to update the assessment roll, which is then sent to Tarrant County for the collection of taxes. Mrs. Petry provided a brief explanation of the main components of the PID Service and Assessment Plan, including required disclosures, how residents are notified of the taxes assessed in the PID and the communication between the PID management team, investors and residents. She then asked if she could answer any questions. Council Member Langdon asked what was included in the administrative costs contained in the report. Mrs. Petty stated that this includes fees charged by Petty & Associates, Tarrant County collection fees, miscellaneous legal fees, audit fees, and trustee fees. Mayor Wheat then asked who normally sees this report. Mrs. Petty replied that after approval, it is sent to the original underwriter, the Town's bond counsel and financial advisor, the Tarrant County Appraisal District, and to the project's investors. MOTION: Council Member Goble made a motion to approve Ordinance 912. Council Member Belvedere seconded the motion. The motion carried by a vote of 5-0. TC Minutes — 8/24/20 Page 5 of 6 10. FUTURE AGENDA ITEMS: None. 11. BOARD RECAP/STAFF DIRECTION Publish the notice for the Public Hearing on September 14th with the maximum tax rate of $0.18969. Provide a list of cost -saving measures identified by staff to be provided to the public. 12. ADJOURNMENT 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 Trivedi seconded the motion. The motion carried by a vote of 5-0. Mayor Wheat adjourned the meeting at 9:05 p.m. ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071 THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS GOVERNMENT CODE. APPROVED BY THE TOWN COUNCIL ON SEPTEMBER 28, 2020. ATTEST: `�!�Q— Laura Wheat, Mayor TQdd Wood, Town Secretary TC Minutes — 8/24/20 Page 6 of 6