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05/05/2008-CC-Minutes-Work SessionMINUTES: City Council Meeting Workshop May 5, 2008 PRESENT: Mayor Joe Higgs, Councilman Glenn Ervin, Councilman Andy Garza, Councilman Robert Patton, Councilman Thomas Muir MEMBERS ABSENT: Councilman Mike Walker OTHERS PRESENT: City Manager Mike Brice, City Secretary/Asst. City Manager Rose Chavez 1. Call Meeting to Order. Mayor called meeting to order. 2. Discussion on Ordinance #04-12-08 -Amending Chapter 10, Subdivision Regulations of the Code of Ordinances of the City of Sanger. City Manager advised that at the last work session they discussed and reviewed all the changes; however, it was the first time Council had a chance to review the subdivision regulations. There was a clean version and a marked version with the changes. It is on the agenda tonight in case they had questions. Councilman Muir indicated he had some questions and corrections regarding the clean and the marked version. There were questions regarding the preliminary plat and the final plat. The corrections were noted. City Manager advised the Planning and Zoning Commission must act within 30 days on a final plat. He also advised some of the areas of concerns were requirements of State Law and he will make sure to verify those areas in question. The other question Councilman Muir addressed was the wording in Section 9.03, item (a) It serves no more than six lots. Discussion followed. City Council agreed to change the wording to reflect Section 9.03 (a) to read as follows: It serves no more than six lots abutting to a street. Discussion continued with the acreage requirement for septic system in the ETJ. It was determined the City adopt the County requirements concerning septic system. 3. Discussion on Future Industrial Development and Possible Establishment of a Tax Increment Reinvestment Zone. City Manager addressed Council concerning the possibility of establishing a TIRZ zone. He has had several inquires on the property that is around Wal-Mart. The people walk away from possibly developing the property due to the infrastructure cost. An update on the existing sewer line extending to these properties was discussed. City Manager explained the process on now the I mr zone works. The property is taken at what it is valued today and as it develops the difference of the increased tax value is what Council can decide what proportion of that is put back for the THtF to develop the infrastructure. The Sanger School System and the County can participate as well. City Manager indicated the City will not get the property tax on this property unless it does develop. If this is developed the City will capture a portion of the property tax and with time we will eventually get the full property tax. Discussed that currently there has not been any interest in railroad access. The district will not carry a different tax rate. The sell of bonds was discussed. This will benefit future development. The existing sewer line is not big enough if all this property develops. Councilman Garza questioned the existing sewer line. He indicated he was under the impression that the bore that was done under Interstate 35 would carry development on the West side of the Interstate. City Manager advised that if there was development on the West side of Intersate 35 it will not necessarily burden that line; however, if all the property around Wal-Mart develops then the line is not big enough. There was a lengthy discussion concerning the existing sewer line that goes to Wal-Mart. City Manager indicated it will eventually take 4A monies and a TIRF zone to build the infrastructure to this area. If this is something the Council wants him to do then he will proceed further. It does take a long time and it is expensive due to the attorney fees in setting it up. Councilman Muir expressed that in the long run he feels it is a good idea, but in the short run if the City is trying to build the stability level, how much property taxes will the City be giving up that can be utilized in the General Fund. City Manager indicated this is up to Council since they can set the rate. Councilman Muir asked if the rate can be changed periodically. City Manager indicated that it can't be changed. The money from the TIRZ zone is what pays the bond debt. Councilman Muir indicated in the short run the City is losing some of its liquidity, its cash flow since the City will be banking on the development to come. It is a win situation if the property goes up with development. City Manager continued to explain the process which could take six months to a year. If the TH2Z zone is established and if commercial development comes then the next process would be to sell bonds. This allows them to determine the tax revenue the development will generate before the bonds are sold. Councilman Patton asked the City Manager if he could conduct a research and check with other cities who have done this and how successful they were. City Manager advised he will do some more research and have more information for Council. He will also visit with the other entities to see if they are interested in participating. Councilman Higgs asked how do other ces like Decatur and Burleson get the monies to buy property for Industrial Park Development. City Manager advised it could have been purchased with 4A or 4B monies. They buy the property for future development. City Manager advised he has had inquires for Commercial Industrial Development. 4. Questions from the Council. 5. Overview of Items on Regular Agenda. City Manager asked Council if there were any questions concerning agenda items. Councilman Muir asked who were the members that serve on the sign ordinance committee and who is responsible for getting the meetings scheduled. Councilman Muir also serves on this committee. City Manager advised Russell Martin, Mike Walker and there is another member from the Planning and Zoning Commission who will also serve on the committee. City Manager will be responsible for calling the meetings. Councilman Muir also advised he would like to add an addendum to the minutes of April 219 2008 # 17. He wanted his motion to read as follows for clarification: Councilman Muir moved to approve Ordinance # 04-20-08, stating that he was not for general rate increases for the sake of increases. However, this increase will have a very small effect on residents' monthly bills. The additional revenue would help the City build its reserve account which is fiscally responsible and consistent with the advice given by the city's auditor. Council agreed to the change as indicated. Councilman Ervin had a question concerning the hardware maintenance agreement cost for Interactive Computers. City Secretary advised the Municipal Court does have annual hardware maintenance support through Incode. Interactive Computers is part of Incode/Tyler Technologies. Councilman Garza asked when will the City be finished with all the electric poles. City Manager advised all the poles are in the ground and the only thing that hasn't been done is the cable and phone companies have not switched over to the city's poles. They have had their trucks working in town all this week. Councilman Garza indicated they have come again today to this customer's property and asked to get back into his property to work He indicated this has been ongoing from December through May of this year. The customer has just sodded the area. He is not looking for money but this is a long time in trying to get a job done. City Manager advised they have been on these utility companies for live months to get their work completed. 6. Adjournment. Mayor adjourned the workshop session.