2019-09-11 CC Minutes Farmers Branch City Hall
City of Farmers Branch 13000 Wm Dodson Pkwy
Meeting Minutes Farmers 6234h,Texas
FARMERS City Council
BRANCH
Wednesday, September 11, 2019 6:30 PM Study Session
Special Called Meeting - Budget
A. CALL TO ORDER - (6:30 P.M.)
Presiding: 1 - Mayor Robert Dye
Present: 5- Mayor Pro Tern John Norwood, Council Member Bronson Blackson, Council
Member Mike Bomgardner, Deputy Mayor Pro Tern Terry Lynne and Council
Member Cristal Retana
Staff: 18-City Manager Charles Cox, Deputy City Manager John Land, Assistant City
Manager Benjamin Williamson, City Secretary Amy Piukana, City Attorney
Peter G. Smith, City Attorney Kevin Laughlin, Police Chief David Hale, Fire
Chief Steve Parker, Director of Human Resources Brian Beasley, Director of
Public Works Marc Bentley, Director of Sustainability & Health Shane Davis,
Director of Planning & Zoning AICP Tina M. Firgens, Director of Economic
Development Allison Cook, Director of Library Denise Wallace, Building
Official Hugh Pender, Director of Information Services Mark Samuels, Director
of Communications Tom Bryson and Director of Fleet & Facilities Kevin
Muenchow
19-441 Discuss the City Manager's Proposed Fiscal Year 2019-20 balanced
budget
Director of Finance Sherrelle Evans-Jones briefed City Council regarding this item. She
reviewed a tax comparison table with nearby cities.
Ms. Evans-Jones reviewed the following budget options.
D 1120 PROPOSED 19-20 EFFECTIVE TAX ONE CENT UNDER TES:
BUDGET V.2 RATE REDUCTION ROLLBACK RAT
Tax Rate: No change Tax Rate: No change Tax Rate: $0.583953 Tax Rate: $0.589507 Tax Rate: $0.61
Results in annual Increase: Decrease: Decrease: Increase:
property taxes Park knprovenarne•$3006 Tax rate reducoan of$8015554 Tax rate reduction of$0.01 Tax rate increase of$0 010493
mcreaseof$60for RexhideCreek lighting•11705 Revenue Reduction of$958,769 Revenue Reduceonof5506,640 Revenue Increase 015646.802
st tat PayGofuming• Creek Spending
average property value $5006 Need specifics of which Need specifics of which
due to increase in Expenditures/Programs Expenditures/Programs Decrease:
valuation. would be reduced to would be reduced to Decrease GF Expenditures by
Decrease: accommodate this accommodate this $1M-Employee Increases,Fire
Library Pay-Do Funding•$7466 station 42 landscaping,etc
change. change
The City Council discussed homestead exemptions and how it affects their tax bills and
tax reductions verses increases.
Mayor Dye asked City Council if they would consider amending the Farmers Branch
Chamber Contract to allow funding to be utilized for the new Chamber Director Grace
Speese to receive training for her new role
The City Council agreed to amend the contract and authorize a portion of the funding to
be utilized for training of the new Farmers Branch Chamber Director Grace Speese.
Mayor Dye asked for each Council Member to state their position on the tax rate
proposals then he would allow citizen comments afterwards.
Mayor Dye stated he supports a one cent tax reduction and taking a conservative
approach noting with the growth of the new construction, we can capitalize into new
revenue He suggested operational expenses be capped at 3% then change Police
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City Council Meeting Minutes September 11, 2019
and Fire to 4.5 %. He stated we need to look at Capital debt long term (15-20+ years).
He explained small projects are best utilized with the pay as you go philosophy; however,
larger items are not sustainable. He recommended not exceeding 18% in debt
allocation.
Mayor Pro Tem Norwood stated he agrees with a one cent tax decrease noting, this
sends a "feel good" message to our citizens. He noted without pressure to the budget,
you limit innovative ideas.
Council Member Bomgardner explained after reviewing the tax chart, Farmers Branch
citizens are taxed less than surrounding cities. He stated he would support a tax
increase to .61 cents,which would allow review of other initiatives such as Creeks, Parks,
and Police needs. He noted even though he prefers to increase the taxes he would
support the consensus of the Council.
Council Member Blackson stated he supports adopting the effective rate in order to give
control back to residents.
Council Member Retana stated she supports a leaner approach to the budget however;
disagrees with limiting staff's budget, noting monies are necessary to implement
innovative projects. She further stated it's the City Council's responsibility to educate
residents on City taxes and on the importance of City services. She agreed with Mayor
Dye on utilizing the pay as you go philosophy on smaller projects She stated she would
support maintaining the current tax rate She expressed concerns with infrastructure
funding and noted the growth is inevitable She suggested being more innovative with
rebate programs and creating a sidewalk program to assist residents.
Deputy Mayor Pro Tem Lynne stated he supports maintaining the tax rate. He stated
cuts could be made at a later time and suggested raising the senior tax exemption to
offset costs. He noted the City has many programs to consider such as creek, sidewalk
programs, landfill closure costs, and recommended adjusting the demo rebuild program .__.
and increasing incentives, and EDC funds. He suggested reviewing staff benefits and
possibly creating a committee to review employee pay and benefits.
The City Council discussed the number of employees, benefits, retirement contributions
and staff salaries.
Director of Human Resources Brian Beasley explained the City is in a tight labor market
and currently runs with lean staff. He further stated City Staff is some of the best he has
every worked for and delivers exceptional service at all levels of the city
Council Member Retana stated she supports City Staff and would like to see additional
inspectors to assist with the growth.
Mayor Dye opened citizen comments, noting a 3 minute time limit would be allowed for
each speaker. The following citizens wished to speak:
Dr. Joyce Benwah spoke explaining people moving to Farmers Branch look at look at City
services, Public Safety, Fire services, and growth, noting the tax rate isn't the first thing
new residents look at when relocating the area.
Mike Harrison spoke suggesting the old debt services be refinanced
Mr. Cox explained the city utilizes a financial advisor that reviews debt annually
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City Council Meeting Minutes September 11,2019
'—' Kristen Bickham spoke regarding concerns with inflation due to the Federal Reserve's
monetary policy and the devaluation of the dollar. She discussed rates and the new SB
2 legislation on rate increases. She asked the following questions regarding the budget:
1) Does the 2019-2020 budget include Certificates of Obligation? If yes, what would the
proceeds be used for, 2)There was$14.4 mill of"unassigned funds" reported in the 2018
CAFR, how were those spent., 3)What is the projected"unassigned fund"balance by the
end of this fiscal year(September 30, 2019) and how will the unassigned fund be spent
after 9/30/19, 4)With a target of unassigned funds being 15-20%of the operating budget,
as stated in the proposed budget on page 10 of 160, how are these funds used each year
and why can't these funds be used to give tax payers major tax cuts the following fiscal
year if there is no emergency need.
Ms. Evans-Jones replied explaining reserve funds are held in case of an emergency and
the City Council has the authority to decide how these funds will be spent.
Mr. Cox explained these reserve monies can't be used to offset taxes, and are held as an
emergency fund since the amount is flat.
Ms. Evans Jones explained there are no new Certificate of Obligations being proposed.
She noted debt issuance for the quality of life bonds approved in 2017, will be issued in
May 2020 Ms. Evans Jones noted the Council has to approve the issuance of the debt
at the time Council reviews.
Council Member Bomgardner explained the City recently had to transfer$2 mill out of the
rainy day fund
Ms. Evans Jones explained whatever the ending balance is from the fund balance rolls
forward
Resident Vicki Harrison spoke noting the money seems to move. Mr. Cox explained this
movement is due to expenditures.
Ms. Harrison expressed concerns with using the words "feel good", she states in her
opinion it's insulting to citizens, she explained budget cuts create innovation, and there
are other ways the City can request money She had concerns with the 3.5% noting the
growth rate excludes new construction.
Resident Jan Burke spoke stating state legislature took action due to citizens, noting
Texas has second highest debt.
Mr. Cox spoke stating Farmers Branch is low on debt issuance and noted that the City
has held to the same number of employees since 2014 He explained the City has not
increased employees in the past five years, noting 9 total employees are being proposed,
noting most are due to the growth of the west side development.
Council Member Bomgardner stated he would support keeping the tax rate the same but
asked for a $1 million budget cut. He suggested delaying on PD and Fire pay increases,
noting a 6 month delay could generate a 25% savings over a 2 year period, and the
possibility of reducing merit increases for City staff
Mayor Pro Tem Norwood stated he would not support cutting merit increases for
employees.
Council Member Retana stated she does not support cutting merit
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City Council Meeting Minutes September 11,2019
Mayor Dye stated the goal was to reduce by$1 million and that has been accomplished.
After discussion, City Council agreed to remove $300,000 from the Fire Station No 2
landscaping (will consider a phased approach in future) and remove Library funding in
the amount of$746,000, and remove $250,000 for monument signs. This would reduce
the budget by$1 3 million.
Council Member Bomgardner stated we would apply the $500,000 from the $1.3 million
to the storm water fund and keep park improvements at $300,000, and add in Rawhide
Creek lighting of $170,000 plus $370,000 for future infrastructure projects for a total of
$1,340,000.
Mr. Cox stated we have a phased approach plan with Freese and Nichols and monies in
the fund balance could be utilized at Council's discretion
B. CITIZEN COMMENTS
All citizen comments were made during the Council discussion item
C. ADJOURNMENT
Mayor Dye made a motion to adjourn the meeting. Motion seconded by Mayor Pro Tem
Norwood. Motion approved unanimously.
The meeting adjourned at 9:43 p m.
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Approved by: _AM
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