The URL can be used to link to this page

06/06/2020-CC-Minutes-Work SessionMINUTES CITY COUNCIL WORK SESSION MONDAY, JULY 6, 2020 5:00 PM HISTORIC CHURCH BUILDING 403 N 7TH STREET SANGER, TEXAS COUNCIL MEMBERS PRESENT: Mayor Thomas Muir; Mayor Pro Tem Gary Bilyeu; Councilmember Marissa Barrett; Councilmember Dennis Dillon; Councilmember David Clark; Councilmember Allen Chick. COUNCIL MEMBERS ABSENT: None. STAFF MEMBERS PRESENT: City Manager Alina Ciocan; City Secretary Cheryl Price; Director of Finance Clayton Gray; Police Chief Curtis Amyx; Fire Chief David Pennington; Director of Electric Utilities Mike Prater; Director of Human Resources and Special Projects; Municipal Court Clerk Christy Dyer; City Engineer Tracy LaPiene; Director of Development Services Ramie Hammonds; Director of Economic Development Shani Bradshaw, Library Director Audrey Tolle; Librarian/Social Media Laura Klenke: Police Officer Josh Bishop, 1.Call Meeting to Order There being a full quorum, Mayor Muir called the Work Session to order at 5:00 p.m. 2.Budget Workshop Items 2 and 3 were reversed on the agenda to provide more time for budget discussion. City Manager Alina Ciocan was recognized to provide a summary of the 20202021 Budget. She noted that she invited all Department Heads to be in attendance so they would be available to answer any questions the Council may have regarding department budgets. The budget philosophy has not changed and we plan for fiscally conservative estimations in all funds and have very conservative revenue estimates based on history. Any capital expenditures we have are based on actual needs we have at this time. She provided a timeline schedule for the budget; explained the various funds utilized by the City; and covered revenues and expenditures. Highlights in the General Fund for the current fiscal year as follows: Current Propety Tax Collections year to date are 3.7 M Sales Tax Collections year to date are $789K and should end the year ahead of projections Building Permits year to date at $280K, ahead of projections. Municipal Court revenue, Parks and Recreation revenue will end the year below projections. Page 1 MINUTESCITY COUNCIL WORK SESSIONMONDAY, JULY 6, 20205:00 PMHISTORIC CHURCH BUILDING 403 N 7TH STREETSANGER, TEXASCOUNCIL MEMBERS PRESENT:Mayor Thomas Muir; Mayor Pro Tem Gary Bilyeu; Councilmember Marissa Barrett;Councilmember Dennis Dillon; Councilmember David Clark; Councilmember Allen Chick.COUNCIL MEMBERS ABSENT:None.STAFF MEMBERS PRESENT:City Manager Alina Ciocan; City Secretary Cheryl Price; Director of Finance Clayton Gray; PoliceChief Curtis Amyx; Fire Chief David Pennington; Director of Electric Utilities Mike Prater; Directorof Human Resources and Special Projects; Municipal Court Clerk Christy Dyer; City EngineerTracy LaPiene; Director of Development Services Ramie Hammonds; Director of EconomicDevelopment Shani Bradshaw, Library Director Audrey Tolle; Librarian/Social Media LauraKlenke: Police Officer Josh Bishop,1.Call Meeting to OrderThere being a full quorum, Mayor Muir called the Work Session to order at 5:00 p.m. 2.Budget WorkshopItems 2 and 3 were reversed on the agenda to provide more time for budget discussion. City Manager Alina Ciocan was recognized to provide a summary of the 20202021 Budget. Shenoted that she invited all Department Heads to be in attendance so they would be available toanswer any questions the Council may have regarding department budgets. The budget philosophyhas not changed and we plan for fiscally conservative estimations in all funds and have veryconservative revenue estimates based on history. Any capital expenditures we have are based onactual needs we have at this time. She provided a timeline schedule for the budget; explained thevarious funds utilized by the City; and covered revenues and expenditures. Highlights in the GeneralFund for the current fiscal year as follows:Current Propety Tax Collections year to date are 3.7 MSales Tax Collections year to date are $789K and should end the year ahead of projectionsBuilding Permits year to date at $280K, ahead of projections. Municipal Court revenue, Parks and Recreation revenue will end the year below projections. Finance Director Clayton Gray provided a summary on Property Taxes, the process, timeline, and an update on the Legislative changes from S.B. 2. Some changes he noted were that the Effective Tax Rate is now called the NoNewRevenue Tax Rate; the Rollback Tax Rate is now called the VoterApproved Tax Rate (the highest tax rate the City may adopt before an automatic election in November) which provides the City with the same amount of tax revenue it spent the previous year operations plus a 3.5% (was 8%) increase for operation. He explained the De Minimis Tax Rate for entities under 30,000 population which gives smaller taxing units some relief from the 3.5% voter approved tax rate. The City Tax rate for 20152016 and 20162017 was $0.6795 and for 2017 2018, 20182019 and 20192020 the tax rate has remained the same at $0.6791. City Manager Alina Ciocan summarized General Fund Revenues and Expenditures. She noted that this year she is summarizing the budget for each department and department heads are present to answer an questions the Council may have. A brief summary of each department in the General Fund is noted below: Police Department: Minimal changes to the budget. As in previous years, in Capital Outlay they have included the purchase of two vehicles in the budget to replace older vehicles. Animal Control has no proposed changes in the budget. Fire Department: Decreased because last years budget included a match for grant personnel. We are not applying for the grant this year and there was brief discussion regarding this item. There is also a grant that is outstanding the Aerial Apparatus which is not included in the budget; however, if the grant is received staff will bring the request to City Council for a Budget Amendment. The Fire department is proposing a new position Assistant Fire Chief/Fire Marshal. The City's Fire Marshal has resigned and this position would be an 8:00 to 5:00 position.. Capital Outlay proposes updating the Self Contained Breathing Apparatus (SCBA) $210,000 (we have applied for grants in the past three years and were not successful and have also applied for the grant this year, but it is included in the budget in case we do not receive it) The SCBA equipment has an expiration date and does have to be replaced by next year they are only good for fifteen years. A Command Truck is also proposed ($55,000) which would be replacing an 11 year old truck. There were a few questions and some discussion for Fire Chief David Pennington regarding the proposed budget items. Court Department: Minimal changes to the budget. Includes a proposed increase for prosecutor and judges. Development Services: Increased expenditures proposed in several categories due to the code enforcement program. There was a brief discussion regarding this item and the expenses incurred up front such as mowing and filing liens, etc. That these fees are recuperated if the homeowner pays them, or when the property sells. Street Department: The proposed budget has gone down and they are not proposing any capital outlay this year. There was $70,000 for culdesac replacement but it was not included in this budget. If was noted through questioning that staff will look into this and will come back with a change in the budget if necessary. There was brief discussion. Parks Department: No proposed capital outlay. Recreation Department excluding salaries and benefits there have been no proposed changes to the budget. Library Department: Minimal changes to the budget. Solid Waste: No changes. Mayor Muir noted his concerns regarding the maintenance of brush in the City. He noted that we need to look at this area to help resolve this situation. City Manager Alina Ciocan summarized the Enterprise Fund Revenues and Expenditures and gave a Page 2 MINUTESCITY COUNCIL WORK SESSIONMONDAY, JULY 6, 20205:00 PMHISTORIC CHURCH BUILDING 403 N 7TH STREETSANGER, TEXASCOUNCIL MEMBERS PRESENT:Mayor Thomas Muir; Mayor Pro Tem Gary Bilyeu; Councilmember Marissa Barrett;Councilmember Dennis Dillon; Councilmember David Clark; Councilmember Allen Chick.COUNCIL MEMBERS ABSENT:None.STAFF MEMBERS PRESENT:City Manager Alina Ciocan; City Secretary Cheryl Price; Director of Finance Clayton Gray; PoliceChief Curtis Amyx; Fire Chief David Pennington; Director of Electric Utilities Mike Prater; Directorof Human Resources and Special Projects; Municipal Court Clerk Christy Dyer; City EngineerTracy LaPiene; Director of Development Services Ramie Hammonds; Director of EconomicDevelopment Shani Bradshaw, Library Director Audrey Tolle; Librarian/Social Media LauraKlenke: Police Officer Josh Bishop,1.Call Meeting to OrderThere being a full quorum, Mayor Muir called the Work Session to order at 5:00 p.m. 2.Budget WorkshopItems 2 and 3 were reversed on the agenda to provide more time for budget discussion. City Manager Alina Ciocan was recognized to provide a summary of the 20202021 Budget. Shenoted that she invited all Department Heads to be in attendance so they would be available toanswer any questions the Council may have regarding department budgets. The budget philosophyhas not changed and we plan for fiscally conservative estimations in all funds and have veryconservative revenue estimates based on history. Any capital expenditures we have are based onactual needs we have at this time. She provided a timeline schedule for the budget; explained thevarious funds utilized by the City; and covered revenues and expenditures. Highlights in the GeneralFund for the current fiscal year as follows:Current Propety Tax Collections year to date are 3.7 MSales Tax Collections year to date are $789K and should end the year ahead of projectionsBuilding Permits year to date at $280K, ahead of projections.Municipal Court revenue, Parks and Recreation revenue will end the year below projections. Finance Director Clayton Gray provided a summary on Property Taxes, the process, timeline, andan update on the Legislative changes from S.B. 2. Some changes he noted were that the EffectiveTax Rate is now called the NoNewRevenue Tax Rate; the Rollback Tax Rate is now called theVoterApproved Tax Rate (the highest tax rate the City may adopt before an automatic election inNovember) which provides the City with the same amount of tax revenue it spent the previous yearoperations plus a 3.5% (was 8%) increase for operation. He explained the De Minimis Tax Rate forentities under 30,000 population which gives smaller taxing units some relief from the 3.5% voterapproved tax rate. The City Tax rate for 20152016 and 20162017 was $0.6795 and for 20172018, 20182019 and 20192020 the tax rate has remained the same at $0.6791. City Manager Alina Ciocan summarized General Fund Revenues and Expenditures. She noted thatthis year she is summarizing the budget for each department and department heads are present toanswer an questions the Council may have. A brief summary of each department in the General Fundis noted below: Police Department: Minimal changes to the budget. As in previous years, in Capital Outlay they have included the purchase of two vehicles in the budget to replace older vehicles.Animal Control has no proposed changes in the budget.Fire Department: Decreased because last years budget included a match for grant personnel. We are not applying for the grant this year and there was brief discussion regarding this item. There is also a grant that is outstanding the Aerial Apparatus which is not included in thebudget; however, if the grant is received staff will bring the request to City Council for aBudget Amendment. The Fire department is proposing a new position Assistant FireChief/Fire Marshal. The City's Fire Marshal has resigned and this position would be an 8:00to 5:00 position.. Capital Outlay proposes updating the Self Contained Breathing Apparatus(SCBA) $210,000 (we have applied for grants in the past three years and were notsuccessful and have also applied for the grant this year, but it is included in the budget in casewe do not receive it) The SCBA equipment has an expiration date and does have to bereplaced by next year they are only good for fifteen years. A Command Truck is alsoproposed ($55,000) which would be replacing an 11 year old truck. There were a fewquestions and some discussion for Fire Chief David Pennington regarding the proposedbudget items. Court Department: Minimal changes to the budget. Includes a proposed increase forprosecutor and judges. Development Services: Increased expenditures proposed in several categories due to thecode enforcement program. There was a brief discussion regarding this item and theexpenses incurred up front such as mowing and filing liens, etc. That these fees arerecuperated if the homeowner pays them, or when the property sells.Street Department: The proposed budget has gone down and they are not proposing anycapital outlay this year. There was $70,000 for culdesac replacement but it was notincluded in this budget. If was noted through questioning that staff will look into this and willcome back with a change in the budget if necessary. There was brief discussion. Parks Department: No proposed capital outlay. Recreation Department excluding salariesand benefits there have been no proposed changes to the budget. Library Department: Minimal changes to the budget. Solid Waste: No changes. Mayor Muir noted his concerns regarding the maintenance ofbrush in the City. He noted that we need to look at this area to help resolve this situation. City Manager Alina Ciocan summarized the Enterprise Fund Revenues and Expenditures and gave a brief summary of each department in the Enterprise Fund: Water Department: Projected increases in wholesale water costs Volume Charge 3.5% and Demand Charge .04%. Proposed changes are Contract Services maintenance contracts for the storage tanks that were rehabilitated this year. Waste Water Department: Personnel expenditures decreased there is one position in the budget that has not been filled. Electric Department: Has requested a new position Electric Tech/Groundman. There was brief discussion. Electric has not requested a new position in 12 years. City Manager Alina Ciocan summarized the Internal Service Fund and pointed out that the funding was originally set at 30% General Fund and 70% Enterprise fund. After reviewing this with Finance Director Clayton Gray the funding was shifted 70/30 to 60/40. The funding will be updated in the 202021 budget to reflect this shift. She reviewed revenues and expenditures and gave a brief summary of each department is noted below: Mayor and Council: It was noted that there is not a salary and benefits line item for Mayor and Council. There was discussion regarding contract services.and it was noted that this includes Legal Services which is the largest expense we have. A higher amount is proposed for next year which is still lower than what we have amended the budget to this year. This item is a hard item to budget due to the unknowns. Administration: New position proposed Executive Assistant/Assistant to the City Manager (the title has not been determined). Administration is the only department that does not have any part or full time administrative assistance. Public Works: Minimal changes. Finance: Proposed new position Customer Service Supervisor Engineering: Personnel Request New Position Engineering Tech and an Increase in Contract Services for Engineering outsourcing and annual software support. Fleet Service: No changes. Facilities: No proposed capital outlay. The Community Center renovation have been delayed and it will be discussed with Finance Director if it can be issued a PO and completed this year. Nondepartmental Expenditures: This item includes items such as Insurance, election costs, tax collections. This area has a minimal decrease. A presentation on Debt was provided by Clayton Gray and there was brief discussion. City Manager Alina Ciocan noted that the City is looking at issuing bonds for FM 455, Utility relocation , stream restoration and a lift station. We are getting cost estimates, etc and need these estimates to do the bond issuance. This will be coming before Council i the near future. 4A and 4B Revenues and expenditures were summarized. She noted Director of Economic Development has proposed to change the was funding is budgeted by allocating funding for specific categories. There was discussion regarding grants within the City and it was noted that the grants would be through 4B and they are for a Facade Grant program for $25,000. It was noted it was not included in the budget and would be addressed by staff. Capital Projects Fund: Information was provided showing the road projects completed this year. Enterprise Capital Projects Fund: We are currently finishing the wastewater treatment plant rehab project; FM 455 Engineering; Stream Restorationassessing project feasibility. Upcoming Enterprise Capital Projects are: FM 455 wideningrelocation of utilities; stream restoration/outfall pipeline; IH 35 projectrelocation of utilities; Railroad lift station (Formerly known as Cowling Road Lift Page 3 MINUTESCITY COUNCIL WORK SESSIONMONDAY, JULY 6, 20205:00 PMHISTORIC CHURCH BUILDING 403 N 7TH STREETSANGER, TEXASCOUNCIL MEMBERS PRESENT:Mayor Thomas Muir; Mayor Pro Tem Gary Bilyeu; Councilmember Marissa Barrett;Councilmember Dennis Dillon; Councilmember David Clark; Councilmember Allen Chick.COUNCIL MEMBERS ABSENT:None.STAFF MEMBERS PRESENT:City Manager Alina Ciocan; City Secretary Cheryl Price; Director of Finance Clayton Gray; PoliceChief Curtis Amyx; Fire Chief David Pennington; Director of Electric Utilities Mike Prater; Directorof Human Resources and Special Projects; Municipal Court Clerk Christy Dyer; City EngineerTracy LaPiene; Director of Development Services Ramie Hammonds; Director of EconomicDevelopment Shani Bradshaw, Library Director Audrey Tolle; Librarian/Social Media LauraKlenke: Police Officer Josh Bishop,1.Call Meeting to OrderThere being a full quorum, Mayor Muir called the Work Session to order at 5:00 p.m. 2.Budget WorkshopItems 2 and 3 were reversed on the agenda to provide more time for budget discussion. City Manager Alina Ciocan was recognized to provide a summary of the 20202021 Budget. Shenoted that she invited all Department Heads to be in attendance so they would be available toanswer any questions the Council may have regarding department budgets. The budget philosophyhas not changed and we plan for fiscally conservative estimations in all funds and have veryconservative revenue estimates based on history. Any capital expenditures we have are based onactual needs we have at this time. She provided a timeline schedule for the budget; explained thevarious funds utilized by the City; and covered revenues and expenditures. Highlights in the GeneralFund for the current fiscal year as follows:Current Propety Tax Collections year to date are 3.7 MSales Tax Collections year to date are $789K and should end the year ahead of projectionsBuilding Permits year to date at $280K, ahead of projections.Municipal Court revenue, Parks and Recreation revenue will end the year below projections. Finance Director Clayton Gray provided a summary on Property Taxes, the process, timeline, andan update on the Legislative changes from S.B. 2. Some changes he noted were that the EffectiveTax Rate is now called the NoNewRevenue Tax Rate; the Rollback Tax Rate is now called theVoterApproved Tax Rate (the highest tax rate the City may adopt before an automatic election inNovember) which provides the City with the same amount of tax revenue it spent the previous yearoperations plus a 3.5% (was 8%) increase for operation. He explained the De Minimis Tax Rate forentities under 30,000 population which gives smaller taxing units some relief from the 3.5% voterapproved tax rate. The City Tax rate for 20152016 and 20162017 was $0.6795 and for 20172018, 20182019 and 20192020 the tax rate has remained the same at $0.6791. City Manager Alina Ciocan summarized General Fund Revenues and Expenditures. She noted thatthis year she is summarizing the budget for each department and department heads are present toanswer an questions the Council may have. A brief summary of each department in the General Fundis noted below: Police Department: Minimal changes to the budget. As in previous years, in Capital Outlay they have included the purchase of two vehicles in the budget to replace older vehicles.Animal Control has no proposed changes in the budget.Fire Department: Decreased because last years budget included a match for grant personnel. We are not applying for the grant this year and there was brief discussion regarding this item. There is also a grant that is outstanding the Aerial Apparatus which is not included in thebudget; however, if the grant is received staff will bring the request to City Council for aBudget Amendment. The Fire department is proposing a new position Assistant FireChief/Fire Marshal. The City's Fire Marshal has resigned and this position would be an 8:00to 5:00 position.. Capital Outlay proposes updating the Self Contained Breathing Apparatus(SCBA) $210,000 (we have applied for grants in the past three years and were notsuccessful and have also applied for the grant this year, but it is included in the budget in casewe do not receive it) The SCBA equipment has an expiration date and does have to bereplaced by next year they are only good for fifteen years. A Command Truck is alsoproposed ($55,000) which would be replacing an 11 year old truck. There were a fewquestions and some discussion for Fire Chief David Pennington regarding the proposedbudget items. Court Department: Minimal changes to the budget. Includes a proposed increase forprosecutor and judges. Development Services: Increased expenditures proposed in several categories due to thecode enforcement program. There was a brief discussion regarding this item and theexpenses incurred up front such as mowing and filing liens, etc. That these fees arerecuperated if the homeowner pays them, or when the property sells.Street Department: The proposed budget has gone down and they are not proposing anycapital outlay this year. There was $70,000 for culdesac replacement but it was notincluded in this budget. If was noted through questioning that staff will look into this and willcome back with a change in the budget if necessary. There was brief discussion. Parks Department: No proposed capital outlay. Recreation Department excluding salariesand benefits there have been no proposed changes to the budget. Library Department: Minimal changes to the budget. Solid Waste: No changes. Mayor Muir noted his concerns regarding the maintenance ofbrush in the City. He noted that we need to look at this area to help resolve this situation.City Manager Alina Ciocan summarized the Enterprise Fund Revenues and Expenditures and gave abrief summary of each department in the Enterprise Fund: Water Department: Projected increases in wholesale water costs Volume Charge 3.5% andDemand Charge .04%. Proposed changes are Contract Services maintenance contracts forthe storage tanks that were rehabilitated this year. Waste Water Department: Personnel expenditures decreased there is one position in thebudget that has not been filled. Electric Department: Has requested a new position Electric Tech/Groundman. There wasbrief discussion. Electric has not requested a new position in 12 years. City Manager Alina Ciocan summarized the Internal Service Fund and pointed out that the fundingwas originally set at 30% General Fund and 70% Enterprise fund. After reviewing this with FinanceDirector Clayton Gray the funding was shifted 70/30 to 60/40. The funding will be updated in the202021 budget to reflect this shift. She reviewed revenues and expenditures and gave a briefsummary of each department is noted below: Mayor and Council: It was noted that there is not a salary and benefits line item for Mayorand Council. There was discussion regarding contract services.and it was noted that thisincludes Legal Services which is the largest expense we have. A higher amount is proposedfor next year which is still lower than what we have amended the budget to this year. Thisitem is a hard item to budget due to the unknowns.Administration: New position proposed Executive Assistant/Assistant to the City Manager(the title has not been determined). Administration is the only department that does not haveany part or full time administrative assistance. Public Works: Minimal changes.Finance: Proposed new position Customer Service SupervisorEngineering: Personnel Request New Position Engineering Tech and an Increase in ContractServices for Engineering outsourcing and annual software support.Fleet Service: No changes.Facilities: No proposed capital outlay. The Community Center renovation have been delayedand it will be discussed with Finance Director if it can be issued a PO and completed thisyear. Nondepartmental Expenditures: This item includes items such as Insurance, election costs,tax collections. This area has a minimal decrease. A presentation on Debt was provided by Clayton Gray and there was brief discussion. CityManager Alina Ciocan noted that the City is looking at issuing bonds for FM 455, Utility relocation ,stream restoration and a lift station. We are getting cost estimates, etc and need these estimates todo the bond issuance. This will be coming before Council i the near future.4A and 4B Revenues and expenditures were summarized. She noted Director of EconomicDevelopment has proposed to change the was funding is budgeted by allocating funding for specificcategories. There was discussion regarding grants within the City and it was noted that the grantswould be through 4B and they are for a Facade Grant program for $25,000. It was noted it wasnot included in the budget and would be addressed by staff.Capital Projects Fund: Information was provided showing the road projects completed this year. Enterprise Capital Projects Fund: We are currently finishing the wastewater treatment plant rehabproject; FM 455 Engineering; Stream Restorationassessing project feasibility. Upcoming Enterprise Capital Projects are: FM 455 wideningrelocation of utilities; stream restoration/outfall pipeline; IH 35 projectrelocation of utilities; Railroad lift station (Formerly known as Cowling Road Lift Station). Other items mentioned were a proposed 3% merit increase; City's TMRS rate increasing from 8.31% to 8.70%; Social Services Contributions to Span for $11,600 and Children's Advocacy Center $14,652. Staff opened up for questions and there was general discussion regarding various budget areas and questions were posed to directors regarding various items within their budgets. City Manager Alina Ciocan complimented City Staff and noted that in the last few years the City has grown and we have done more with less, and each department, and the employees in them have done a phenomenal job in keeping up the pace and and keeping up with the growth and she wanted everyone to know that it is appreciated. We have come a long way. There was some additional questions posed to staff regarding various departmental budget items and the Mayor and Councilmembers also complimented staff. 3.Update and Discussion Related to the City's Response to COVID19 Items 2 and 3 were reversed on the agenda to provide more time for budget discussion. Mayor Muir summarized COVID related funding that would be disbursed by Denton County. He noted that the City of Sanger would be disbursed around $485,000 in CRF Funds ($55 per person according to population) which could help pay for the safety expenditures such as fire, police etc. during the pandemic. He noted the County has provided an interlocal which basically gives the City the option to use it all; give it all to Denton County; or to put aside a percentage of the funds for Grant funds. It was noted that the staff also looked into grants for food, housing, utility assistance, etc., and it was pointed out that this area was covered by the United Way of Denton County and some of our residents are currently utilizing these funds. Also mentioned was new program which they are getting ready to kick off "Denton County Cares" (both organizations have funding to expand these services). The City also discussed looking at setting the additional percentage aside for Grants for the business community. Denton County has the staff to provide a grant program so it may be beneficial for the City to provide a percentage of the funds to go back to Denton County for Grant funding into the business community. There was discussion of a 10 percent amount of the $485,000 CRF funds being sent back to Denton County for disbursement to Sanger businesses. Concern was noted regarding any strings being tied to the money and it was noted that there were none, that the use of the money has to be COVID related. There was discussion between the Mayor, City Council and the Economic Development Director Shani Bradshaw regarding the two recent grant rounds for the businesses in Denton County. Ms. Bradshaw noted that 23 businesses in the City of Sanger applied for the the first grant application and seven were approved and sixteen were denied mostly because of missing information. She noted that most of them were going to reapply. Mayor Muir noted that he asked the County what other cities are doing and it was noted that there are plenty of cities taking it all. There was some discussion as to whether the percentage would go to Sanger businesses and how it would be disbursed. It was noted that the businesses would likely have to reapply for the money in the second round of funding. That the money would come back into the community, if the businesses apply for it. After a short deliberation consensus among the Council was that they would be in favor of a 10% of the CRF funds going back to the businesses. It was noted that this item would be further discussed when the Interlocal is placed on a future Council agenda. Also discussed was whether Chamber of Commerce would qualify any funding, perhaps for the Cares program. There was discussion as to the loss of revenue to the Chamber because of COVID, and as what outlets may be available to help the Chamber continue to operate Page 4 MINUTESCITY COUNCIL WORK SESSIONMONDAY, JULY 6, 20205:00 PMHISTORIC CHURCH BUILDING 403 N 7TH STREETSANGER, TEXASCOUNCIL MEMBERS PRESENT:Mayor Thomas Muir; Mayor Pro Tem Gary Bilyeu; Councilmember Marissa Barrett;Councilmember Dennis Dillon; Councilmember David Clark; Councilmember Allen Chick.COUNCIL MEMBERS ABSENT:None.STAFF MEMBERS PRESENT:City Manager Alina Ciocan; City Secretary Cheryl Price; Director of Finance Clayton Gray; PoliceChief Curtis Amyx; Fire Chief David Pennington; Director of Electric Utilities Mike Prater; Directorof Human Resources and Special Projects; Municipal Court Clerk Christy Dyer; City EngineerTracy LaPiene; Director of Development Services Ramie Hammonds; Director of EconomicDevelopment Shani Bradshaw, Library Director Audrey Tolle; Librarian/Social Media LauraKlenke: Police Officer Josh Bishop,1.Call Meeting to OrderThere being a full quorum, Mayor Muir called the Work Session to order at 5:00 p.m. 2.Budget WorkshopItems 2 and 3 were reversed on the agenda to provide more time for budget discussion. City Manager Alina Ciocan was recognized to provide a summary of the 20202021 Budget. Shenoted that she invited all Department Heads to be in attendance so they would be available toanswer any questions the Council may have regarding department budgets. The budget philosophyhas not changed and we plan for fiscally conservative estimations in all funds and have veryconservative revenue estimates based on history. Any capital expenditures we have are based onactual needs we have at this time. She provided a timeline schedule for the budget; explained thevarious funds utilized by the City; and covered revenues and expenditures. Highlights in the GeneralFund for the current fiscal year as follows:Current Propety Tax Collections year to date are 3.7 MSales Tax Collections year to date are $789K and should end the year ahead of projectionsBuilding Permits year to date at $280K, ahead of projections.Municipal Court revenue, Parks and Recreation revenue will end the year below projections. Finance Director Clayton Gray provided a summary on Property Taxes, the process, timeline, andan update on the Legislative changes from S.B. 2. Some changes he noted were that the EffectiveTax Rate is now called the NoNewRevenue Tax Rate; the Rollback Tax Rate is now called theVoterApproved Tax Rate (the highest tax rate the City may adopt before an automatic election inNovember) which provides the City with the same amount of tax revenue it spent the previous yearoperations plus a 3.5% (was 8%) increase for operation. He explained the De Minimis Tax Rate forentities under 30,000 population which gives smaller taxing units some relief from the 3.5% voterapproved tax rate. The City Tax rate for 20152016 and 20162017 was $0.6795 and for 20172018, 20182019 and 20192020 the tax rate has remained the same at $0.6791. City Manager Alina Ciocan summarized General Fund Revenues and Expenditures. She noted thatthis year she is summarizing the budget for each department and department heads are present toanswer an questions the Council may have. A brief summary of each department in the General Fundis noted below: Police Department: Minimal changes to the budget. As in previous years, in Capital Outlay they have included the purchase of two vehicles in the budget to replace older vehicles.Animal Control has no proposed changes in the budget.Fire Department: Decreased because last years budget included a match for grant personnel. We are not applying for the grant this year and there was brief discussion regarding this item. There is also a grant that is outstanding the Aerial Apparatus which is not included in thebudget; however, if the grant is received staff will bring the request to City Council for aBudget Amendment. The Fire department is proposing a new position Assistant FireChief/Fire Marshal. The City's Fire Marshal has resigned and this position would be an 8:00to 5:00 position.. Capital Outlay proposes updating the Self Contained Breathing Apparatus(SCBA) $210,000 (we have applied for grants in the past three years and were notsuccessful and have also applied for the grant this year, but it is included in the budget in casewe do not receive it) The SCBA equipment has an expiration date and does have to bereplaced by next year they are only good for fifteen years. A Command Truck is alsoproposed ($55,000) which would be replacing an 11 year old truck. There were a fewquestions and some discussion for Fire Chief David Pennington regarding the proposedbudget items. Court Department: Minimal changes to the budget. Includes a proposed increase forprosecutor and judges. Development Services: Increased expenditures proposed in several categories due to thecode enforcement program. There was a brief discussion regarding this item and theexpenses incurred up front such as mowing and filing liens, etc. That these fees arerecuperated if the homeowner pays them, or when the property sells.Street Department: The proposed budget has gone down and they are not proposing anycapital outlay this year. There was $70,000 for culdesac replacement but it was notincluded in this budget. If was noted through questioning that staff will look into this and willcome back with a change in the budget if necessary. There was brief discussion. Parks Department: No proposed capital outlay. Recreation Department excluding salariesand benefits there have been no proposed changes to the budget. Library Department: Minimal changes to the budget. Solid Waste: No changes. Mayor Muir noted his concerns regarding the maintenance ofbrush in the City. He noted that we need to look at this area to help resolve this situation.City Manager Alina Ciocan summarized the Enterprise Fund Revenues and Expenditures and gave abrief summary of each department in the Enterprise Fund: Water Department: Projected increases in wholesale water costs Volume Charge 3.5% andDemand Charge .04%. Proposed changes are Contract Services maintenance contracts forthe storage tanks that were rehabilitated this year. Waste Water Department: Personnel expenditures decreased there is one position in thebudget that has not been filled. Electric Department: Has requested a new position Electric Tech/Groundman. There wasbrief discussion. Electric has not requested a new position in 12 years. City Manager Alina Ciocan summarized the Internal Service Fund and pointed out that the fundingwas originally set at 30% General Fund and 70% Enterprise fund. After reviewing this with FinanceDirector Clayton Gray the funding was shifted 70/30 to 60/40. The funding will be updated in the202021 budget to reflect this shift. She reviewed revenues and expenditures and gave a briefsummary of each department is noted below: Mayor and Council: It was noted that there is not a salary and benefits line item for Mayorand Council. There was discussion regarding contract services.and it was noted that thisincludes Legal Services which is the largest expense we have. A higher amount is proposedfor next year which is still lower than what we have amended the budget to this year. Thisitem is a hard item to budget due to the unknowns.Administration: New position proposed Executive Assistant/Assistant to the City Manager(the title has not been determined). Administration is the only department that does not haveany part or full time administrative assistance. Public Works: Minimal changes.Finance: Proposed new position Customer Service SupervisorEngineering: Personnel Request New Position Engineering Tech and an Increase in ContractServices for Engineering outsourcing and annual software support.Fleet Service: No changes.Facilities: No proposed capital outlay. The Community Center renovation have been delayedand it will be discussed with Finance Director if it can be issued a PO and completed thisyear. Nondepartmental Expenditures: This item includes items such as Insurance, election costs,tax collections. This area has a minimal decrease. A presentation on Debt was provided by Clayton Gray and there was brief discussion. CityManager Alina Ciocan noted that the City is looking at issuing bonds for FM 455, Utility relocation ,stream restoration and a lift station. We are getting cost estimates, etc and need these estimates todo the bond issuance. This will be coming before Council i the near future.4A and 4B Revenues and expenditures were summarized. She noted Director of EconomicDevelopment has proposed to change the was funding is budgeted by allocating funding for specificcategories. There was discussion regarding grants within the City and it was noted that the grantswould be through 4B and they are for a Facade Grant program for $25,000. It was noted it wasnot included in the budget and would be addressed by staff.Capital Projects Fund: Information was provided showing the road projects completed this year. Enterprise Capital Projects Fund: We are currently finishing the wastewater treatment plant rehabproject; FM 455 Engineering; Stream Restorationassessing project feasibility. Upcoming EnterpriseCapital Projects are: FM 455 wideningrelocation of utilities; stream restoration/outfall pipeline; IH35 projectrelocation of utilities; Railroad lift station (Formerly known as Cowling Road LiftStation). Other items mentioned were a proposed 3% merit increase; City's TMRS rate increasing from8.31% to 8.70%; Social Services Contributions to Span for $11,600 and Children's AdvocacyCenter $14,652. Staff opened up for questions and there was general discussion regarding variousbudget areas and questions were posed to directors regarding various items within their budgets. City Manager Alina Ciocan complimented City Staff and noted that in the last few years the Cityhas grown and we have done more with less, and each department, and the employees in them havedone a phenomenal job in keeping up the pace and and keeping up with the growth and she wantedeveryone to know that it is appreciated. We have come a long way. There was some additional questions posed to staff regarding various departmental budget items andthe Mayor and Councilmembers also complimented staff. 3.Update and Discussion Related to the City's Response to COVID19Items 2 and 3 were reversed on the agenda to provide more time for budget discussion.Mayor Muir summarized COVID related funding that would be disbursed by Denton County. Henoted that the City of Sanger would be disbursed around $485,000 in CRF Funds ($55 per personaccording to population) which could help pay for the safety expenditures such as fire, police etc.during the pandemic. He noted the County has provided an interlocal which basically gives the Citythe option to use it all; give it all to Denton County; or to put aside a percentage of the funds forGrant funds. It was noted that the staff also looked into grants for food, housing, utility assistance,etc., and it was pointed out that this area was covered by the United Way of Denton County andsome of our residents are currently utilizing these funds. Also mentioned was new program whichthey are getting ready to kick off "Denton County Cares" (both organizations have funding to expandthese services). The City also discussed looking at setting the additional percentage aside for Grantsfor the business community. Denton County has the staff to provide a grant program so it may bebeneficial for the City to provide a percentage of the funds to go back to Denton County for Grantfunding into the business community. There was discussion of a 10 percent amount of the $485,000CRF funds being sent back to Denton County for disbursement to Sanger businesses. Concern wasnoted regarding any strings being tied to the money and it was noted that there were none, that theuse of the money has to be COVID related. There was discussion between the Mayor, CityCouncil and the Economic Development Director Shani Bradshaw regarding the two recent grantrounds for the businesses in Denton County. Ms. Bradshaw noted that 23 businesses in the City ofSanger applied for the the first grant application and seven were approved and sixteen were deniedmostly because of missing information. She noted that most of them were going to reapply. MayorMuir noted that he asked the County what other cities are doing and it was noted that there areplenty of cities taking it all. There was some discussion as to whether the percentage would go toSanger businesses and how it would be disbursed. It was noted that the businesses would likelyhave to reapply for the money in the second round of funding. That the money would come backinto the community, if the businesses apply for it. After a short deliberation consensus among theCouncil was that they would be in favor of a 10% of the CRF funds going back to the businesses. It was noted that this item would be further discussed when the Interlocal is placed on a futureCouncil agenda. Also discussed was whether Chamber of Commerce would qualify any funding, perhaps for the Cares program. There was discussion as to the loss of revenue to the Chamber because of COVID, and as what outlets may be available to help the Chamber continue to operate if they could not have the major events they typically depend on for income such as the Sellabration which is their primary fundraiser for the year. Jeriana Staton was introduced to give a brief update regarding COVID as it related to to emergency services personnel and also provided information related to face coverings and the Governor's Order GA29 noting that the Governor's office would be providing signage later in the week and the City will be posting signs for the public and employees regarding facecoverings/masks. 4.Overview of Items on the Regular Agenda Mayor Muir noted that Mayor Pro Tem Bilyeu asked regarding the COVId updates on the Agenda how it has affected the Comp Plan process. Shani Bradshaw, Director of Economic Cevelopment noted that the first kick off meeting was two weeks ago and she and Ramie Hammonds are going to begin forming committees and will have the second meeting at the end of July. Director of Development Services Ramie Hamonds noted that they plan to revise the timeline at that meeting and it will be pushed back about 3 to 4 months. Director of Development Services Ramie Hammonds was recognized and noted on the Consent Agenda of the Council Meeting tonight that she would like to make a recommendation for a change on the Planning and Zoning Commission/Zoning Board of Adjustment appointments/reappointments. She asked if the Council would consider moving Existing Member Bo Cooper to Alternate and appointing Alternate Jason Miller to Place 6. She explained that she wanted to make the change because of attendance problems. Director of Development Services Ramie Hammonds summarized Item 7 of the Agenda. Country Road Estates is a preliminary plat creating 58 lots of a minimum of 1 acre each. The City will have no services in the area. They are going to have Bolivar Water; onsite septic; and CoServ Electric. The developer has worked with staff and did resubmit a revised preliminary plat which was turned in after the agenda was complete (she handed out copies). One of the variances they are requesting is requirement for the frontage on a Residential Class Street. They have reduced the original preliminary plat from 8 lots to three lots regarding the Residential Street Frontage variance. She noted they also exceed the requirement for culdesac length Denton County subdivision rules sates that a culdesac shall be constructed every 1000 feet along deadend street. There are the three variances they are requesting. Mayor Muir just wanted to make sure that Council was familiar with the variances because this has been discussed at previous meetings. He noted that he was encouraged that they listened to staff regarding the street frontages and did make an effort to improve their request from eight lots to three. Through questioning by Councilmember Barrett there was discussion regarding the culdesac requirement. Councilmember Chick noted his concerns regarding the number of variances. Brief discussion ensued regarding the variances and City Engineer Tracy LaPiene further explained them and there was some discussion regarding the amount of variances that have been requested by the subdivisions in the ETJ. 5.Adjourn There being no further items for discussion, the Work Session was adjourned at 6:53 p.m. Page 5