Loading...
HomeMy WebLinkAbout09-14-20 TC MinMINUTES OF THE TOWN OF WESTLAKE, TEXAS TOWN COUNCIL MEETING September 14, 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, September 14, 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. ABSENT: Council Member Rick Rennhack. 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, Fire Chief Richard Whitten, Director of Planning & Development Ron Ruthven, Communications Manager Jon Sasser, Business Manager Marlene Rutledge, Building Official Pat Cooke, Development Coordinator Nick Ford, Facilities & Event Manager Darcy McFarlane and Budget & Financial Analyst Kelsey Wong. Regular Session 1. CALL TO ORDER Mayor Wheat called the Regular Session to order at 7:42 p.m. 2. CITIZEN COMMENTS TC Minutes — 9/14/20 Page 1 of 6 Mayor Wheat provided a brief summary of instructions to the public for citizen comments. No one addressed the Town Council. 3. ITEMS OF COMMUNITY INTEREST Town Manager Amanda DeGan indicated that these items were the same as those presented at the Board of Trustees meeting held earlier that evening. 4. 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 22, 2020. b. Consider approval of the minutes from the meeting on July 21, 2020. MOTION: Council Member Langdon made a motion to approve the consent agenda. Council Member Belvedere seconded the motion. The motion carried by a vote of 4-0. S. CONDUCT A PUBLIC HEARING AND CONSIDERATION OF ORDINANCE 913, ADOPTING THE TOWN OF WESTLAKE REVISED BUDGET FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2020, ADOPTING THE PROPOSED BUDGET FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2021 INCLUDING AN INVESTMENT POLICY, PAY PLAN POLICY, FISCAL AND BUDGETARY POLICIES, RESTRICTED, COMMITTED AND ASSIGNED FUND BALANCES, AND PROVIDING AUTHORIZATION TO THE TOWN MANGER TO APPROVE APPROPRIATED FUNDS UP TO $50,000. Town Manager Amanda DeGan presented this item. She noted that at the Town Council meeting held on August 24th, a maximum tax rate was published per Town Council direction at the "Voter Approval Tax Rate", which provided flexibility for subsequent budgetary discussions and decisions. She then stated explained the term "No New Revenue Tax Rate" was also discussed at the August 24th meeting, which replaced the former "Effective Tax Rate" term that has been previously used. Mrs. Degan then stated that while the Town is navigating through times that were previously unexpected, we will continue to look to the future and what will be brought to Westlake. Staff is acutely aware that the Town's revenue streams are volatile, the Town's property tax rate is low, and she would very much like to it stay low as long as possible. She then mentioned that one of the main questions that our residents and elected officials have had is what the property tax rate will be for the upcoming year. She then indicated that the property tax is proposed to move very slightly upward to $0.16788 per $100 of assessed valuation. If approved, this rate would essentially adopt the "No New Revenue Tax Rate", previously known as the "Effective Tax Rate". This is the total rate calculated to raise the same amount of property tax revenue from the same properties. The actual revenue collected from this rate could be affected by new property assessments and changes to exemptions on any taxable TC Minutes — 9/14/20 Page 2 of 6 property. It is projected that the proposed tax rate would generate an additional $134k in revenues when compared to the 2019-2020 fiscal year. Mrs. DeGan explained that property taxes represent the Town's third -largest revenue stream, in contrast to other cities where property tax represents the largest or second largest revenue stream. This is due to Westlake's collection of sales and use tax, which is currently the largest revenue stream for the Town of Westlake. She then showed a comparison of Westlake's property tax rates compared to other cities. Westlake remained the lowest of the comparison cities and is among the lowest 5% of all municipalities in the state of Texas. Mrs. DeGan then explained that sales tax projections have been reduced for the proposed 2020-2021 budget, and staff will continue to monitor actual collections throughout the year. The proposed tax rate is projected to generate an additional $134k, and beverage taxes have been reduced by 36%. Development and permit fees have been reduced by 93%, which presents a potential problem that Town staff will be monitoring this closely throughout the year. Hotel/Motel occupancy tax revenues have been reduced by 54% due to the pandemic, and it was noted that the Marriott could possibly re -open in 2020. Mrs. Degan explained that every department head has taken the approach of budgeting very conservatively, as in previous years. At this time, no new positions are budgeted in the upcoming fiscal year, and reductions have been made in staffing by not filling vacancies. A 2% employee pay increase has been budgeted per Town Council direction, and transfers to conduit funds have been deferred. Some capital projects would be delayed to mid -year, pending continual review of the Town's financial position. This approach is taken to not over- burden our residents in the future and maintain a fiscally conservative position. The ending fund balance projections using the "No New Revenue Tax Rate" in the FY 20/21 budget indicated that operating days would be reduced from 489 to 410, calculated at a cost of $29,221 per day. Staff will continually monitor these numbers to ensure the Town has the capacity to sustain any fluctuations that may occur going forward with main revenue sources. Mrs. DeGan concluded her budget presentation and asked if the Town Council had any questions. Mayor Wheat asked if the Property Tax Reduction Fund (PTR) could be clarified, as is may be confusing to comprehend. Mrs. DeGan explained that the Property Tax Reduction Fund subsidizes any property tax rate that may need to be put in place in order to generate equivalent revenues. In essence, the amount generated from this portion of sales tax reduces the amount that property taxes would need to generate, thereby reducing the property tax rate. Without this appropriation of sales tax funding through the PTR, municipal property taxes would be approximately $0.13 higher per $100 valuation. Assistant Town Manager Jarrod Greenwood gave further explanation regarding how the 1/2 cent sales tax for the 4A Economic Development Fund was appropriated to the PTR Fund to reduce any property tax burden for Westlake residents. Mayor Wheat opened the Public Hearing at 8:08 p.m. No one addressed the Town Council. Mayor Wheat closed the Public Hearing at 8:08 p.m. TC Minutes — 9/14/20 Page 3 of 6 MOTION: Council Member Goble made a motion to approve Ordinance 913. Council Member Langdon seconded the motion. The motion carried by a vote of 4-0. 6. CONSIDERATION AND DISCUSSION OF RESOLUTION 20-27, RATIFYING THE PROPERTY TAX INCREASE AS REFLECTED IN THE FY 2020-21 ANNUAL OPERATING AND CAPITAL BUDGET. Town Manager Amanda DeGan presented this item, indicating that it was a continuation of the discussion that was concluded on the prior item. She began by showing what the "No New Revenue Tax Rate" would be as proposed with the calculations that have been performed. She reminded the Town Council that the maximum tax rate was posted at the "Voter Approval Rate". This posting was necessary since the certified tax rolls had not yet been received from Denton County in the prior month and would allow flexibility for discussion and decisions based on this data. She reiterated that staff recommended adoption of the "No New Revenue Tax Rate". MOTION: Council Member Trivedi made a motion to approve the Resolution 20- 27. Council Member Belvedere seconded the motion. The motion carried by a vote of 4-0. 7. CONDUCT A PUBLIC HEARING AND CONSIDERATION OF ORDINANCE 914, LEVYING MUNICIPAL AD VALOREM (PROPERTY) TAXES FOR THE 2020 TAX YEAR IN ACCORDANCE WITH THE FISCAL YEAR 2020-21 PROPOSED BUDGET. Town Manager Amanda DeGan indicated that this item was a continuation of the discussion that was held on the previous item, and there was no new information to present. MOTION: Council Member Langdon made a motion to approve Ordinance 914. Council Member Trivedi seconded the motion. The motion carried by a vote of 4-0. 8. EXECUTIVE SESSION The Town Council convened into Executive Session at 8:11 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 TC Minutes — 9/14/20 Page 4 of 6 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 - Agreement with Mesa Planning for work related to the Public Art project 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(2) Consultation with Attorney — to seek advice of counsel on matters in which the duty of the Town Attorney under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Texas Government Code - FM 1938 access for proposed Southlake development. d. Section 551.071 Consultation with Attorney - to seek advice of counsel regarding Granada Homeowners' Association matters. 9. RECONVENE MEETING Mayor Wheat reconvened the public meeting at 9:26 p.m. 10. TAKE ANY ACTION, IF NEEDED, FROM EXECUTIVE SESSION ITEMS. None. 11. FUTURE AGENDA ITEMS None. 12. BOARD RECAP/STAFF DIRECTION a. Present a report on the impact of the Property Tax Reduction Fund to the Town Council. 13. 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 4-0. Mayor Wheat adjourned the meeting at 9:28 p.m. TC Minutes — 9/14/20 Page 5 of 6 APPROVED BY THE TOWN COUNCIL ON OCTOBER 26, 2020. ATTEST: Laura Wheat, Mayor �w Tod4 Wood, Town Secretary TC Minutes — 9/14/20 Page 6 of 6