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07/31/2006-CC-Minutes-Work SessionMINUTES: CITY COUNCIL WORKSHOP JULY 319 2006 PRESENT: Mayor Joe Higgs, Councilman Glenn Ervin, Councilman Robert Patton, Councilman Andy Garza ABSENT: Councilman Mike James, Councilman Mike Walker OTHERS PRESENT: City Manager Jack Smith, Assistant City Manager/City Secretary Rose Chavez, Eddie Branham, Water/Wastewater Superintendent, Electric Superintendent Mike Prater, Court Clerk Christy Punches, Mechanic Supervisor Kristian Lundberg, Debra Phillips, Katie Noel 1. Call Meeting to Order Mayor Higgs called Meeting to Order. 2. Budget Workshop for Fiscal Year 2006/2007. City Manager addressed the Board and advised that the budgets for FY 06/07 did not have any "padding in them", no raises unless employees were meeting probation, there may be one or two employees in the Electric Department that will be reaching their next step level. Only isolated cases will get raises. In some departments the expenses were lower than last year. Staff was conservative in the preparation of their budgets. In the Fire Department, there was $25,000 budgeted for renovations. City Manager emphasized that $25,000 was not sufficient for anything. The City does own property East of the railroad tracks that abuts McReynolds. City Manager indicated that the City could pursue to build a new station on the East side and if there is ever a problem with a train blocking the road there will be enough people on the East side to respond. City Manager advised that the new ambulances and the new fire truck are currently stored under a shed and are not being housed properly. The ambulance is ready to be put in service. Discussion. Councilman Ervin inquired as to when will they be ready to drop the City of Denton and start operating with our own medic service and is it covered in this budget. Fire Chief, David Pennington advised that he was hoping to be ready by October, however, that is not a possibility. They still have not received their permit from TDH (Texas Department of Health) which has to be obtained before they get their DEA permit. Fire Chief indicated they are anticipating to be in service by December I of this year. Fire Chief discussed an option on the possibility of using Krum ambulance service. Krum would be reimbursed two months of what Sanger would get from the county for a twelve month period. Krum also wants the ability to bill the citizens. Denton's base transport is $800.00 and Krum's is $500.00. Chief indicated they will be discussing this with their Fire Marshal tomorrow. He indicated they will proceed with the contract with the County and then subcontract with Krum for the two months. Discussion was the amount listed in the budget of $197,600.00 for the ambulance contract to cover cost of contractual services. The County contract starts October 1, 2006. The City will not receive funds from the County until September 30, 2007 which will be one lump sum. Discussion concerning the payment on the fire runs and funds the City will receive next budget year. Discussion followed on whether to raise rates on water and sewer services. In comparison to other cities, Sanger is on the low end on rates. Councilman Ervin emphasized he felt that the water and sewer tap fee rates should be raised. This would have less impact on the citizens than raising rates. City Manager indicated that in order to do this the City will need to pursue an impact study to justify the increase. The CiTy can say it is not an impact fee, however, in the State of Texas it is. City Manager discussed that a study was done and the fees calculated $2,000 for water and $2,000 for sewer. Everything that was planned in the impact study is now coming about. City Manager advised that part of the $2,000 fee in sewer taps in the impact study was absorbed by 4A when they paid to bore under I-35. The State onlv allows a City to recover 50% and 50% from the general population. Discussion on what was included in the study. City Manager discussed balance in the reserve account and anticipated revenues for sewer and water taps this next budget year. City Manager advised on the property the City owns across the railroad track which would be an excellent location due to the subdivision in that area and the high school. Councilman Patton indicated emergency response is high priority with him and we need to see where funds can be utilized either from capital improvement projects or utility revenues. City Manager discussed current water and sewer rates and emphasized that before we proceed to seek another bond issue for the new sewer plant. A rate study analysis will need to be done. Discussion followed concerning rates of other cities and comparisons. Councilman Ervin discussed the streets and how developments are told to do something and they don't then the old part of town has to pick up for those expenses. Councilman Ervin addressed street improvements on Willow Street. There is Choice Homes and Indian Trail that back up to Joe Smith on Willow Street and Roger Otwell in Ranger Creek. Councilman Ervin indicated the cost to put the street infrastructure in is a cost for the City. He does not want future developments to continue not following city ordinances. Financing was discussed, and the need to pursue possibilities of financing these projects with priority being emergency response, a building to house ambulances, and employees. Discussed utilizing sewer capital funds to offset engineer expenses on Phase II of the sewer plant. Discussion on the following: *Possibility of utilizing 4B funds *Chief Pennington advised Wichita Falls purchased three fire engines with 4B funds this year *City of Melissa built a fire station with 4B funds Lengthy discussion continued: *Rate increase *Possible building that could be utilized for housing the ambulance temporarily *Office space for code enforcement *Utilizing the upstairs in the police department's office space *Small space that is available for building inspector *Discussed contractual fees paid to engineer City Manager advised he will bring updated budget sheets and alternatives for the Fire Department at the next workshop. 3. Meeting adjourned.