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HomeMy WebLinkAboutCCpkt2010-09-07 Special MeetingCITY OF ANNA SPECIAL CITY COUNCIL MEETING AGENDA September 7, 2010 6:30 PM Anna City Hall Administration Bldg. ~ The City Council of the City of Anna will meet in Special Session at 6:30 p.m.! September 7, 2010, at the Anna City Hall Administration Bldg., located at 111 N. Powell (Hwy 5), to consider the following items. 1., Call to Order. 2. Roll Call and Establishment of Quorum. 3. Public Hearing: For City Council to hear public comment on the proposed budget for Fiscal Year 2010-2011. (Philip Sanders) 4. Consider/DiscusS/Action regarding adopting an Ordinance approving and adopting the proposed City of Anna FY 2011 Budget for the City of Anna, Texas. (Philip Sanders) 5. Consider/Discuss/Action regarding a resolution to ratify the property tax revenue increase reflected in the City of Anna FY 2011 Budget and acknowledging that the FY 2011 ad valorem tax rate will raise more revenue from property taxes than the previous year. (Philip Sanders) 6. Consider/Discuss/Action regarding adopting an Ordinance setting the ad valorem tax rate per $100 valuation for Fiscal Year 2010-2011 for the City of Anna, Texas. (Philip Sanders) 7. Consider/Discuss/Action regarding adopting an ordinance of the City of Anna, Texas, Amending the City of Anna Code of Ordinances by Amending Part II, Article 1, Sections 9 and Part IV, Schedule of Fees, Article VII, Sections 8; Amending Water and Sewer Rates. (Wayne Cummings) 1. The COWlcil may vote and/or act upon each of the items listed in this agenda. 2. The Council reserves the right to retire into executive session concerning any of the items listed on this agenda, whenever it is considered necessary and legally justified Wlder the Open Meeting Act. 3. Persons with a disability who want to attend this meeting who may need assistance should contact the City Secretary at 972 924­ 3325 two working days prior to the meeting so that appropriate IImIIlgements can be made. 09-07-10 CC Special Meeting Agenda.doc Posted 09-03-10 8. Consider/Discuss/Action regarding approving the Anna Economic Development Corporation Budget for Fiscal Year 2010-2011. (Jessica Perkins) 9. Consider/Discuss/Action regarding approving the Anna Community Development Corporation Budget for Fiscal Year 2010-2011. (Jessica Perkins) 10. Consider/Discuss/Action regarding a Resolution approving a Supplemental Watershed Agreement with the Natural Resources Conservation Service. (Philip Sanders) 11. CLOSED SESSION (EXCEPTIONS): Under Tex. Gov't Code Chapter 551, the City Council may enter into closed session to: a. consult with legal counsel on matters 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 Chapter 551 of the Govemment Code (Tex. Gov't Code §551.071); The council further reserves the right to enter into executive session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 12. Adjourn. This is to certify that I, Natha Wilkison, City Secretary, posted this agenda at a place readily accessible to the public at the Anna City Hall and on the City Hall bulletin board at or before 5:00 p.m., September 3,2010. 1. The Council may vote and/or act upon each ofthe items listed in this agenda. 2. The Council reserves the right to retire into executive session concerning any of the items listed on this agenda, whenever it is considered necessary and legally justified under the Open Meeting Act 3. Persons with a disability who want to attend this meeting who may need assistance should contact the City Secretary at 972 924­ 3325 two working days prior to the meeting SO that appropriate arrangements can be made. 09-07-10 CC Special Meeting Agenda.doc 2 Posted 09-03-10 ItemNo.L City Secretary's use only City of Anna City Council Agenda Staff Report Council Meeting: September 7.2010 Staff Contact: Philip Sanders Account Code #:__________ Budgeted Amount: ____----­Exhibits: 0 Yes DNo AGENDA SUBJECT: ConsiderlDiscussiAction regarding adopting an Ordinance approving and adopting the proposed City of Anna FY 2011 Budget for the City of Anna, Texas. SUMMARY: Since our last workshop on the Annual Budget, I have made few changes. First, I have reduced the General Fund budget by $6,309. As a result of this reduction, the proposed tax rate is $0.001728 cents less than the effective tax rate. This equates to a net reduction in the total taxes levied on existing properties within the City of Anna which compared to the current year. As a result of this reduction, the property tax levy on the average residential homestead will remain unchanged next year. Second, I have increased the Water Department budget in the Utility Fund by $115,000. This increase will enable the department to purchase about on half of the auto-read water meters that are necessary to complete the meter replacement program. Money to fund this increase will come from savings from previous years. Third, the attached Ordinance includes a contingency allocation. Section 7.08 of the City Charter states that "Provision may be made in the annual budget and in the appropriation ordinance for a contingent appropriation in an amount not more than three percent of the total general fund expenditures, to be used in case of unforeseen items of expenditures. Based on our proposed General Fund budget, a 3% contingency appropriation would be $97,983. The appropriation would be funded by excess cash that has not been designated as part of a reserve fund. We anticipate that the General Fund will have excess cash on hand at the end of the year to fund a 40% operating reserve. We are currently developing a proposed financial policy that will recommend that we maintain a 25% operating reserve in the General Fund. Using the excess cash on hand to fund a 3% contingency appropriation would still allow us to fully fund the recommended operating reserve. During the last decade, when the City of Anna was faced with a decision of how to respond to the growth pressures in the region, the city made a conscious choice to welcome and accommodate that growth. Part of that choice involved significant financial investments in public safety, parks, and utility infrastructure so that the city could accommodate and serve a rapidly growing population. Just over three years ago, the growth of the national and local ItemNo. ~~a City Secretary's use y economy began to slow significantly. The number of new homes constructed in the city fell from over 500 in 2006 to only 7 last year. This dramatic decline in growth has challenged the city's ability to fund the programs and infrastructure that we have invested so heavily in over the past decade. Over 60% of the General Fund revenue is derived from property taxes. Last year, the value of existing properties fell for the first time in recent memory (down 3.77%). Again this year, the value of existing properties have fallen an additional 4.8%. Even with modest new construction, the value of the current certified tax role is 3.32% lower than last year's certified roll. In order to fund the proposed budget, the city would need to adopt a tax rate of $0.650332 per $100 valuation which is slightly less than the effective tax rate of $0.652060. The effective tax rate is a calculated rate that would provide the city with about the same amount of revenue it received last year on properties taxed in both years. Because of the decline in property values, the effective tax rate is slightly more than the current tax rate of$0.622733 per $100 valuation. If the City Council adopts the recommended tax rate ($0.650332). the owner of the average residential homestead in Anna would pay $748.76 in property taxes next year. When compared with other cities in our area, the City of Anna has one of lowest per-capita and residential homestead property tax burdens. In order to accommodate existing and projected growth, the city invested about $20 million last decade to upgrade the water and sewer system. Up until two years ago, the city was able to pay about 2/3 of the outstanding water and sewer debt with impact fees that are paid by a home builder when a new home is constructed. As residential construction has declined, the resulting revenue from impact fees has fallen dramatically. In 2008 the city increased utility rates to make up for some of revenue loss. Even with modest growth, the rate model the city relied on at the time predicted that a series of smaller rate increases would be necessary in subsequent years. With almost no growth in 2009, the city is in a position where it must increase water and sewer rates again. The proposed budget recommends that the base rate for each water customer be increased by $4 per month and that the base rate for each sewer customer be increased by $4 per month. The base rate for residential water customers would increase from $18 to $22 per month and the base rate for residential sewer customers would increase from $18 to $22 per month. Although the city has some challenges, there are many positive things happening in our community. After an extended period of slower growth, the city received 14 single family permit applications in the month of July alone. The city also continues to see consistent increases in the amount of sales tax revenue collected each year which is a testament to the health of our local business climate. The city's Economic Development Corporation has taken a very proactive approach in encouraging new businesses to locate in Anna and city staff continues to respond to a consistent stream of inquiries about business and development opportunities in Anna. With the investments being made the city is in a very good position to accommodate the growth of our community well into the future. The city also continues to be very successful in receiving grant funds to supplement local fmancial resources. Last year alone we received almost $750K in grant funds for a variety of projects. This coming year the city expects to spend $350K in grant funds for a water Item No. '-l B~3 City Secretary's use y improvement project in areas east of Hwy. 5. The city recently applied for an additional $1 million parks grant and a $300K grant to purchase a Fire Engine. The City of Anna is heavily invested in the idea that the commwrity will continue to grow during the coming years. The fiscal year 2011 proposed budget is designed to reduce operating expenses where possible while still maintaining the infrastructure and programs the city has built over the past several years. The budget reflects a continuing investment in public safety, parks, street improvements, and utility infrastructure. RECOMMENDATION: Staff recommends approval ofthe attached Annual Budget. ltemNo.~ City Secretary's use only City of Anna City Council Agenda Staff Report Council Meeting: September 7,2010 Staff Contact: Philip Sanders Account Code #: _________ Budgeted Amount: ____---­Exhibits: DYes DNo AGENDA SUBJECT: ConsiderlDiscussl Action regarding a resolution to ratify the property tax revenue increase reflected in the City of Anna FY 2011 Budget and acknowledging that the FY 2011 ad valorem tax rate will raise more revenue from property taxes than the previous year. SUMMARY: A separate vote of the City Council is required to ratify that the adoption of the 2010-2011 Annual Operating Budget will require raising more revenue from property taxes than the previous year. All of the additional revenue ($20,491) is the result of new properties that have been added to the tax roll during the current year. The proposed tax rate will actually reduce the total tax levy on prior existing properties. RECOMMENDATION: Staffrecommends approval ofthe attached Resolution. ------------------- ItemNo.~ City Secretary's use only City of Anna City Council Agenda Staff Report Council Meeting: September 7, 2010 Staff Contact: Philip Sanders Account Code #: Budgeted Amount: _______________ Exhibits: 0 Yes ONo AGENDA SlJBJECT: ConsiderlDiscussl Action regarding adopting an Ordinance setting the ad valorem tax rate per $100 valuation for Fiscal Year 2010-2011 for the City of Anna, Texas. SlJMMARY: In order to fund the proposed budget, the city would need to adopt a tax rate of $0.650332 per $100 valuation which is slightly less than the effective tax rate of $0.652060. The effective tax rate is a calculated rate that would provide the city with about the same amount of revenue it received last year on properties taxed in both years. Because of the decline in property values, the effective tax rate is slightly more than the current tax rate of $0.622733 per $100 valuation. The proposed tax rate will actually reduce the total tax levy on prior existing properties. The average value of a residential homestead in Anna is $115,13 5. This is a reduction of $5,102 from last year's average residential homestead value of $120,237. If the City Council adopts the recommended tax rate ($0.650332), the owner of the average residential homestead in Anna would pay $748.76 in property taxes next year which is the same as last year's average tax levy. When compared with other cities in om area, the City of Anna has one of lowest residential homestead property tax bmdens. RECOMMENDATION: Staff recommends approval of the attached Ordinance. ItemNo·l City Secretary's use only City of Anna City Council Agenda Staff Report Council Meeting: September 7.2010 Staff Contact: Philip Sanders Account Code #:_________ Budgeted Amount:. ____~____ Exhibits: 0 Yes DNo AGENDA SUBJECT: ConsiderlDiscussi Action regarding adopting an ordinance of the City of Anna, Texas, Amending the City of Anna Code of Ordinances by Amending Part II, Article 1, Sections 9 and Part IV, Schedule of Fees, Article VII, Sections 7; Amending Water and Sewer Rates. SUMMARY: The recent dramatic decline in growth has challenged the city's ability to fimd the programs and infrastructure that we have invested so heavily in over the past decade. In order to accommodate existing and projected growth, the city invested about $20 million last decade to upgrade the water and sewer system. Up until two years ago, the city was able to pay about 2/3 of the outstanding water and sewer debt with impact fees that are paid by a home builder when a new home is constructed. As residential construction has declined, the resulting revenue from impact fees has fallen dramatically. In 2008 the city increased utility rates to make up for some of revenue loss. Even with modest growth, the rate model the city relied on at the time predicted that a series of smaller rate increases would be necessary in subsequent years. With almost no growth in 2009, the city is in a position where it must increase water and sewer rates again. The attached Ordinance increases the base rate for each water customer by $4 per month and increases the base rate for each sewer customer by $4 per month. The base rate for residential water customers would increase from $18 to $22 per month and the base rate for residential sewer customers would increase from $18 to $22 per month. RECOMMENDATION: Staff recommends approval ofthe attached Ordinance. ItemNo.L City Secretary's use only CITY OF ANNA. TEXAS City of Anna City Council Agenda Staff Report Council Meeting: Sept. 7, 2010 Account Code #: nla Budgeted Amount: ___---""nI:....:a=-_____ Staff Contact: Jessica Perkins Exhibits: X Yes 0 No AGENDA SUBJECT: ConsiderlDiscusslAction regarding approving the Anna Economic Development Corporation Budget for Fiscal Year 2010-2011. (Jessica Perkins) SUMMARY: For the next fiscal year, the majority of the funds will be used for debt service on the EDC property, finishing out the site improvement agreement with Joe's Italian Bistro, and the economic development incentive to Image Vision Labs. The only notable change to the budget is that the corporation will be funding Y2 of the Chief Administrative Officer's salary instead of ~to allow for funds in the CDC budget to be freed up to assist with the proposed Parks Supervisor salary. The corporation will have approximately $240,000 at the end of the 09-10 FY year in reserve funds. STAFF RECOMMENDATION: Staff recommends you approve the proposed budget. Item No. -'-­ city Secretary's use only CITY OF ANNA, TEXAS City of Anna City Council Agenda Staff Report Council Meeting: Sept. 7.2010 Account Code #: nla Budgeted Amount:.___---"'nI...,.a"--_____ Staff Contact: Jessica Perkins Exhibits: X Yes D No AGENDA SUBJECT: ConsiderlDiscussl Action regarding approving the Anna Community Development Corporation Budget for Fiscal Year 2010-2011. (Jessica Perkins) SUMMARY: For the next fiscal year, the majority of the funds will be used for debt service on existing loans, park equipment and improvements, and salary and equipment for the proposed Parks Supervisor. The equipment cost would require the corporation to dip into their reverse funds in the amount of $23,000 for this one time expense. The corporation will have approximately $230,000 at the end of the 09-10 FY year in reserve funds. STAFF RECOMMENDATION: Staff recommends you approve the proposed budget. ltemNo.~ City Secretary's use only City of Anna City Council Agenda Staff Report Council Meeting: September 7, 2010 Staff Contact: Philip Sanders Account Code #: _________ Budgeted Amount: _________ Exhibits: 0 Yes DNo AGENDA SUBJECT: ConsiderlDiscussl Action regarding adopting a Resolution approving a Supplemental Watershed Agreement. SUMMARY: The Natural Resources Conservation Service is responsible for developing and approving watershed flood control plans for the East Fork Above Lavon watershed (which includes the City of Anna). The City of Mckinney has allocated funds to repair flood retarding structure No. 2A, located just north of CR 123 in the McKinney ETJ. Plan for this work has been approved by the NRCS. Because the City of Anna is the sponsoring organization for one of the other flood retarding structures within this watershed, we are required to sign off and approve any amendments to the watershed work plan. The attached Resolution authorizes the City Manager to sign the supplemental water shed agreement requested by the City of McKinney. RECOMMENDATION: Staff recommends approval ofthe attached Resolution.