07-24-2007 (City Council) Minutes 7/: Wylie City Council
CITY OF WYLIE
Minutes
Wylie City Council
Tuesday, July 24, 2007 - 6:00 pm
Wylie Municipal Complex - Council Chambers
2000 Highway 78 North
CALL TO ORDER
Announce the presence of a Quorum.
Mayor Mondy called the meeting to order at 6:00 p.m. Council Members present were: Mayor
Pro Tern Red Byboth, Councilwoman Kathy Spillyards, Councilman Carter Porter, Councilman
Merrill Young and Councilman David Goss (arrived at 6:18 p.m.). Councilman Rick White was
absent.
Staff present were: City Manager, Mindy Manson; Assistant City Manager, Jeff Butters; Finance
Director, Larry Williamson; Fire Chief, Randy Corbin; City Engineer, Chris Hoisted; Planning
Director Renae' 011ie; Assistant Police Chief, John Duscio; Building Director, Johnny Bray;
WEDC Executive Director, Sam Satterwhite; Library Director, Rachel Orozco; City Secretary,
Carole Ehrlich, and various support staff.
INVOCATION & PLEDGE OF ALLEGIANCE
Mayor Pro Tern Byboth gave the Invocation and Councilman Porter led the Pledge of
Allegiance.
CITIZENS COMMENTS ON NON-AGENDA ITEMS
Residents may address Council regarding an item that is not listed on the Agenda. Residents must provide their
name and address. Council requests that comments be limited to three (3) minutes. In addition, Council is not
allowed to converse, deliberate or take action on any matter presented during citizen participation.
There were no citizens present to address Council during Citizens Comments
CONSENT AGENDA
All matters listed under the Consent Agenda are considered to be routine by the City Council and will be enacted by
one motion. There will not be separate discussion of these items. If discussion is desired, that item will be removed
from the Consent Agenda and will be considered separately.
A. Approval of the Minutes from the July 10, 2007 Regular Meeting of the City
Council. (C. Ehrlich, City Secretary)
Minutes—July 24, 2007
Wylie City Council
Page 1
B. Consider, and act upon, Resolution No. 2007-20(R) suspending the July 30, 2007
effective date of the proposal by ATMOS Energy Corp to implement interim Gas
Reliability Infrastructure Program Rate (GRIP) adjustments for gas utility
investment in 2006; authorizing participation with the ATMOS Cities Steering
Committee (ACSC) in a review and inquiry into the sufficiency of the filing and the
basis of the proposed rate adjustments; authorizing intervention in administrative
and court proceedings involving the proposed GRIP rate adjustments; requiring
reimbursement of reasonable legal and consultant ratemaking costs; and requiring
delivery of this resolution to the Company and Legal Counsel. (M. Manson, City
Manager)
C. Consider, and act upon, Ordinance No. 2007-23 amending Zoning Ordinance No.
2003-25, Section 2.5.4 (Accessory Buildings). (R. 011ie, Planning Director)
D. Consider, and place on file, the monthly Revenue and Expense Report for the City
of Wylie as of June 30, 2007. (L. Williamson, Finance Director)
E. Consider, and place on file, the monthly Revenue and Expense Report for the Wylie
Economic Development Corporation as of June 30, 2007. (S. Satterwhite, Executive
Director, WEDC)
Council Action
A motion was made by Councilman Porter seconded by Mayor Pro Tern Byboth to approve the
Consent Agenda as presented. A vote was taken and passed 5-0 with Councilmen Goss and
White absent.
REGULAR AGENDA
General Business
1. Consider, and act upon, a chain link fence in lieu of masonry fencing for the TXU—
Lavon Switching Station located at the NWC of Eubanks and Brown Street. (R.
011ie, Planning Director)
Staff Comments
Planning Director 011ie addressed Council stating that at its March 28, 2006 meeting Council approved
Zoning Case 2006-19 amending the zoning from Agricultural (AG) District to Planned Development for
mixed uses to allow for Commercial and Industrial uses for the Lavon — TXU Switching Station. The
applicant presented the plans reflecting a chain link fence at the southwestern portion of the property,
separating the switching station from the parkland along Rush Creek. It was Council's direction to have
an 8' masonry wall along Brown Street and adjacent to the park. Council further allowed the applicant to
return to Council with an alternative other than masonry only if areas were not found to be engineering
sound. The applicant is requesting that the western wall be constructed of chain link fencing in lieu of
masonry.
Minutes—July 24, 2007
Wylie City Council
Page 2
Council Discussion
Mayor Mondy asked if anyone had been out to the location to view the area in question. Several Council
members replied that they had been to see the location. Mayor Mondy asked if any council member had a
concern regarding the change in fencing material. Mayor Pro Tern Byboth commented that the only
concern he had was to clarify that this was not to use the chain link for the entire area but only a portion
of the fenced area. Mayor Mondy replied that this was to allow chain link ONLY for the northwest corner.
Councilman Porter added that he had no problem with the change but asked if a portion of the masonry
materials could be used to build an entry to the park area in lieu of using this material for the northwest
corner of the TXU location.
Applicant Comments
Mr. Bill Harper, representative of Oncor Electric (a subsidiary of TXU) addressed Council. He asked if
Council was referring to some type of a formal entrance into the park area. He reported that there was
approximately 1,000 feet of material that would have been used at the northwest corner for masonry
fencing and that he would commit TXU to work with the City to construct some type of entry feature with a
possible archway at the entrance to the park. He asked the Mayor who the contact person for the City
would be. Mayor Mondy replied that it would be the City Manager.
Council Action
A motion was made by Councilman Porter, seconded by Mayor Pro Tem Byboth to approve the
use of chain link fence along the northwest corner of the switching station in replacement of
masonry and allow TXU to build a stone entry feature entrance for the park. A vote was taken
and passed 5-0 with Councilman White and Goss absent.
Mayor Mondy asked Council to delay consideration of Item #2 until after consideration of Item #3 and until
the arrival of City Engineer Hoisted. Consensus of Council was to delay consideration.
Councilman Goss arrived at 6:18 p.m.
2. Consider, and act upon, award of a contract, in the amount of $848,504.48, to
Morrow Construction Company for the construction of the McCreary Road Water
Distribution line. (C. Hoisted, City Engineer)
Staff Comments
City Engineer Hoisted addressed Council stating that the City of Wylie Water Distribution System 5-Year
Capital Improvement Plan identifies the projects necessary to be completed over the next five years to
support the projected growth of the City. The McCreary Road water distribution line is necessary to meet
the peak demands around Southfork Mobile Home Park in the upper service area. The project includes
approximately 2,300 linear feet of 20-inch water line, 5,000 linear feet of 16-inch water line, and related
valves and appurtenances. Mayor Mondy asked City Engineer Hoisted what other projects Morrow
Construction had completed for the City in the last ten years. Mr. Hoisted replied that they had completed
the Kreymer Lane paving project; he noted that they had also done some other utility projects for the City.
Council Action
A motion was made by Councilman Young, seconded by Councilman Porter to award a
contract, in the amount of $848,504.48 to Morrow Construction Company for the construction of
the McCreary Road Water Distribution line. A vote was taken and passed 6-0 with Councilman
White absent.
Minutes—July 24, 2007
Wylie City Council
Page 3
3. Consider, and act upon, Ordinance No. 2007-24 amending Ordinance No. 2006-56
(2006-2007 budget) and approving an appropriation of funds in the amount of
$40,698.93 to be paid to the IRS for tax liabilities incurred in calendar year 2004.
(L. Williamson, Finance Director)
Staff Comments
Finance Director Williamson addressed Council stating that the Internal Revenue Service has been
auditing the City of Wylie for the calendar year 2004 since last October. The major areas of concern were
vendors not receiving 1099s, employees receiving taxable benefits that were not reported as wages,
public officials' pay not being subjected to social security and Medicare, and city employees being paid as
contract labor instead of as employees with the proper payroll deductions. After extensive research and
negotiations with the IRS, the final assessment has been received. He noted that there was a slight
difference in the amount listed on the request for payment from the IRS and this agenda item. The reason
he explained, involved the accrued interest up to the Council meeting to approve such an appropriation.
He noted that the IRS had agreed to lower the assessed penalties from $49,127.26 to the amount
presented tonight, and agreed not to audit 2005 or 2006 if payment was made for 2004 and proper
procedures were put in place. He explained to Council that those procedures were either currently in
place or would be implemented with the new budget in October. Mayor Mondy asked how the City got to
this point of auditing. Mr. Williamson explained that several cities had been audited in the past couple of
years and he believed this is due to finding discrepancies in the taxation of employee benefits that could
be taxed, that affect certain jurisdictions. He reported that many other jurisdictions are going through the
same audits now. Mayor Pro Tern Byboth asked if the payment of this request would bring the City and all
others involved current to the changing of procedures. Mr.Williamson replied that it would.
Council Action
A motion was made by Mayor Pro Tem Byboth, seconded by Councilman Young to approve
Ordinance No. 2007-24 amending Ordinance No. 2006-56 (2006-2007 Budget) and approving
an appropriation of funds in the amount of $40,698.93 to be paid to the IRS for tax liabilities
incurred in calendar year 2004. A vote was taken and passed 5-0 with Councilman White and
Goss absent.
READING OF ORDINANCES
Title and caption approved by Council as required by Wylie City Charter,Article III, Section 13-D.
City Secretary Ehrlich read the captions to Ordinance No.'s 2007-23 and 2007-24 into the
official record.
Mayor Mondv convened into Executive Session at 6:20 p.m. citing exception §§551.074
Personnel Matters.
EXECUTIVE SESSION
Recess into Closed Session in compliance with Section 551.001, et.seq. Texas Government Code, to wit:
§§ 551.074 Personnel Matters; Closed Meeting
Regarding the employment contract for the City Manager for conditions; extending
the residency requirements beyond July 31, 2007 due to delays in construction of the
residence.
Minutes—July 24, 2007
Wylie City Council
Page 4
Mayor Mondy reconvened into Open Session at 6:30 p.m.
RECONVENE INTO OPEN SESSION
Take any action as a result from Executive Session, including but not limited to:
1. Consider, and act upon, amending the Employment contract between the City of
Wylie and Mindy Manson and authorizing the Mayor to execute any and all
amendments related thereto.
Council Action
A motion was made by Mayor Pro Tern Byboth, seconded by Councilman Porter to amend the
Employment contract between the City of Wylie and Mindy Manson regarding the residency
requirement and extending the time for residency from July 31, 2007 to September 3, 2007. A
vote was taken and passed 6-0 with Councilman White absent.
Mayor Mondy convened into Work Session at 6:35 p.m.
WORK SESSION
• Discussion regarding the City of Wylie FY 2007/2008 Annual Budget. (M. Manson,
City Manager)
City Manager Manson and Finance Director Williamson presented the draft of the 2007-2008
Budget. A power point presentation was shown with highlights. Some of those highlights
included the General Fund Projected Revenues for the coming year at $21,398,244; showing
percentages of each revenue category. The proposed General Fund expenditures were
calculated at $21,394,070. Comparison charts from FY2003-2004 to 2007-2008 for assessed
property valuations, comparisons of General Fund balances for the past five years, and General
Fund statements of revenues and expenditures were also presented. Mr. Williamson explained
the property tax distribution calculations and noted that the certified rolls were not in, but he was
able to acquire the amount and calculate the tax revenue generated by the tax roll, to include
that figure in this presentation. City Manager Manson explained that she had requested that
each department keep their expenditures as flat as possible. She explained that the department
budgets are based on this years' budget divided by the number of households. This cost per
household is kept constant throughout the Long-Range Plan. As the number of households
increase, each department's budget increases proportionately, while cost per household
remains the same. She reported that this proposed budget was balanced. She also reported
that the 0 & M was the same as last year (.56196) as requested by Council and calculated in
the long range financial plan. Ms. Manson presented the Utility Fund and reported the projected
revenues at $10,347,000. and expenditures proposed at $9,841,740. Capital Improvement
Program expenditures were projected to be $33,953,600. for FY2007-2008. Mayor Mondy
requested staff to review the phone policy and explore other options; he also asked that the Fire
Department Alarm Monitoring Program be included in the proposed budget. Council requested
two additional work sessions to review the proposed budget.
Minutes—July 24, 2007
Wylie City Council
Page 5
ADJOURNMENT
With no other business before Council Mayor Monday adjourned the meeting at 9:45 p.m.
Consensus of Council was to adjourn.
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Minutes—July 24, 2007
Wylie City Council
Page 6
Budget Workshop
Fiscal Year 2007-2008
CITY OF WYLIE
■
Budget Workshop Agenda
• Review the decisions/assumptions affecting the 2007-08
Budget.
• Presentation of the Long-Range Financial Plan and
methodology used to develop it.
• Presentation of 2007-08 Budget and its relationship to the
Long-Range Financial Plan.
• Discussion
■
Decisions/Assumptions Affectingthe
FY 2007-08 Budget
• Moving forward with construction of the City Hall, Recreation Center, and Library
with groundbreaking currently scheduled for Summer 2008.
• Recreation Center revenues to offset all personnel costs including insurance.
• With the exclusion of the expanded operating costs for the new Library and
Recreation Center, the rest of city government should operate using the current O&M
Tax Rate of $ .56195.
• Once the Library, City Hall, and Recreation Center come online, the estimated Total
Tax Rate, including I&S, would max out at $ .94 in FY 2010-11.
• Future revenue assumptions include the addition of a big box store in 2010.
• Other revenue assumptions for FY 07-08 include:
Housing Units Started 800
Sales Tax Revenue per Household $190
Franchise Fees per Household $150
Licenses & Permit Fees per Building Permit $1,153
■
-Long gRan a Financial Plan and
Methodology
• City Staff has developed a Long-Range Financial Plan that keeps the base
O&M Tax Rate at $.56195.
• Each departmental budget is based on this years' budget divided by the
number of households. This cost per household is kept constant
throughout the Long-Range Plan.
• As the number of households increase, each department's budget
increases proportionately, while cost per household remains the same.
• Additional revenues received in excess of the Long-Range Plan will be
allocated for expenditures based on priorities.
Base Financial Plan
Tax Rate Constant & Salaries of Recreation Center Covered
By Fees
Recreation Center, City Hall and Library Built in 2010
with Big Box
FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16
Required O&M Tax Rate per plan 0.5620 0.5620 0.5620 0.5620 0.5620 0.5620 0.5620 0.5620
Required I&S Tax Rate per plan 0.1913 0.1868 0.2739 0.2463 0.2344 0.2238 0.2138 0.1977
Required Total Tax Rate (Base case) 0.7533 0.7488 0.8359 0.8083 0.7964 0.7858 0.7558 0.7597
Add Library and Staff 0.0303 0.0317 0.0460 0.0442 0.0457 0.0470 0.0482 0.0492
Add City Hall 0.0000 0.0161 0.0224 0.0248 0.0231 0.0216 0.0202 0.0189
Add Recreation Center 0.0000 0.0346 0.0325 0.0276 0.0357 0.0334 0.0313 0.0294
Total Tax Rate for Library, City
Hall, Recreation Center 0.0303 0.0824 0.1010 0.0966 0.1044 0.1020 0.0997 0.0975
Grand Total 0.7836 0.8312 0.9369 0.9049 0.9008 0.8878 0.8755 0.8572
Difference 0.1123 0.0211 0.0040 0.0000 0.0000 0.0000 0.0000 0.0000
■
Financial Plan Using Constant Service
Costs per Household
The following spreadsheet evaluates each department's cost of
delivering services to every household in the City of Wylie. The
departmental cost of delivering these services per household
remains constant from FY 07-08 through FY 15- 16.
Increases in each department's budget is dependent on additional
households being added to the City's tax base.
FY 2007-08
Recommended
Budget and
Proposed Capital
CITYOFwYLIE Improvement
• Program
IFI
Average Home Tax
with Proposed Tax Rate
Average Home Value: $ 151 ,400
Current Preliminary Proposed Proposed
Tax Rate Tax Rate Tax Amount % of Total
City of Wylie .70678 .73325* $ 1,110 29.79 %
WISD 1.70250 1.39500 $ 2,112 56.68 %
Collin County .24500 .24500 $ 371 9.96 %
CCCCD .08768 .08768 $ 133 3.57
Total Taxes 2.74196 2.46093 $ 3,726 100%
*Based on preliminary tax roll.
■
5 Year
Ad Valorem Tax Rate History
0.74
*.73325
0.73
0.72 .70678
.705
0.71
.695 .695
0.7
0.69
2003-04 2004-05 2005-06 2006-07 2007-08
* 2007-2008 Preliminary Tax Rate
General Fund Projected Revenues
FY 2007-08
$21 ,398 ,244
$551,000 $ 325,000 $ 450,000
3% 2% 2%
$ 2,229,000 ❑ Ad Valorem Taxes
10% ❑ Sales Taxes
$395,480
Franchise Fees
2% _ ii; -1-1 "I: ::ei:: Reveiiues
$ 977,750
5% • Service Fees
• Court Fees
$ 1,980,000
9% $ 2,600,000 $ 11,890,014 ❑ Interest & Misc.
12% 56% ■ Transfers from Other Funds
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Assessed PropertyValuations
2200 $ 2024.7
2000 $ 1785.5
1800 $ 1566.7
1600 $ 1395.3
1400 $ 1130.9
1200 i a
cA 1000
800
600
400
i
200 '4
0
AL 0 4 ILL
2003-04 2004-05 2005-06 2006-07 2007-08
Average Single Family Home Value for 2007-08 is: $ 151,400
AnnualSales Tax Receipts
did
57
4.5
471 7 k
3.5 7 /
- _
Cl
37 n
CZ
2.5 7— Cloo
2
2003-04 2004-05 2005-06 2006-07 2007-2008
*Includes budgeted figures for FY 06-07 and
projected figures for FY 07-08.
■
General Fund Ex enditures By Function
p
FY 2007-08
$21 ,394, 070
$ 773,040
4%
$ 2,463,700 Transfers to
12% Other Funds
Community
Services $ 6,098,310
29%
$1,630'040 General
8% Government
Streetsalkh
$ 1,363,390
6%
Development
Services
$ 9,065,590
42%
Public Safety
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General Fund Expenditures By Category
FY 2007-08
$21 ,394, 070
❑ Salaries &
Wages
$ 680,736 $ 1,105,050
$ 4,561,069 3% 5% ❑ Supplies
2 10/0
• Contractural
Services
• Maintenance
$1,234,079 $ 13,040,095
6% 64%
• Transfers to
Other Funds
PI
General Fund
Fund Balance
25,000,000 -V ❑ Total
ct Expenditures
20,000,000 -V <_> o
o M ❑ Fund Balance
0 15,000,000Y M N el
O vi O\ a<
10,000,000
( /
5,000,000Y •s/ o o
o
M M M
M N „
0i _ , _ , - I .,
I I I
2003-04 2004-05 2005-06 2006-07 2007-08 * Includes Projected Figures
for FY 07-08
■
UtilityProjectedFund Revenues
FY 2007-08
$ 10, 347 , 000
• Service Fees
$ 8,617,000
83%
IIIP!!!t ElInterest &
Miscellaneous
$ 230,000 Income
2%
$ 1,500,000
14% ElTransfer from
Other Funds
(Sewer Impact
Fees)
UtilityFund Expenditures By
Department FY 2007-08
$ 9 , 841 , 740
$ 440,530 $ 1,081,020
5% 11%
UtilityAdministration Utilities- Water $ 455,980
5%
Engineering
$ 497,380
$ 6,498,320 5%
66% Utilities- Sewer
Non-Departmental
$ 868,510
9%
Utility Billing
PI
Utility Fund
Fund Balance
12,000,000 -/ ❑ Total
ct 0 10,000,000 � Expenditures
Q
t-
° 8,000,000 -Z N ❑ Fund Balance
kr, en
o
6,000,000 "c i 2/ / :/
4,000,000 Y N/ /
o � o
kfi rt N \
2,000,000 -/ .4 'V 7i.
2003-04 2004-05 2005-06 2006-07 2007-08 * Includes Projected Figures
for FY 07-08
Capital Improvement Program
FY 2007-08 Expenditures
33 953 600
$ 10,980,000 ❑ Parks & Rec
33%
❑ Public Buildings
$ 5,027,600 ■ Streets
15%
■ Water Projects
$ 9,975,000
7'700 �% 29% ■ Wastewater
3 Vi°
s5�,300 io010 6,462,000 • Fleet/Heavy Equipment
p0 19%
$pp�
• Miscellaneous
■
Capital Improvement ProJ' ects
Coming On-Line
FY 2007-08 Highlights
Founders Park $ 4,750,000
New Fire Station Three $ 2,650,000
New Library $ 515,000
New City Hall $ 590,000
Recreation Center/Parks Admin $ 620,000
Brown Street (West) $ 150,000
Ballard Street ('99 Bond) $ 1,250,000
Nortex Ground Storage Reservoir No. 2 $ 1,275,000
Newport Harbor 2.0 MG Ground Storage $ 1,700,000
Newport Harbor/FM 1378 Distribution Line No. 1 $ 1,396,000
Tahoes for Police Department (1) $ 33,000
Equipment for Tahoes (4) $ 71,500
Utility Truck for Water Department $ 31,000
■
FY 2007-08 Recommended Budget
Highlights
Employee Salary & Benefits Assumptions
• Insurance costs are expected to increase by 15%
• Step Increase of 2.5%
• Cost of Living Allowance Increase of 1 .5%
■
FY 2007-08 Recommended Budget
Highlights
New Positions
Department Position(s)
• Municipal Court Deputy Court Clerk
• Information Systems Computer Technician
• Parks Administrative Secretary
• Library Addition of Thirty Part-Time Hours
• Utility Administration Accountant
• Fire 6 Firefighters (3 regular/3 Captains on July 1st)
• Police Quartermaster
4 Patrol Officers (2 hired Oct. 1st, 2 hired April 1st)
School Crossing Guard
FY 2007-08 Recommended
BudgetHighlights
Existing Position Upgrades
Department Change/Upgrade
• City Secretary Reclass Administrative Secretary
Upgrade to Full-Time Records Clerk
• Information Systems Reclass Computer Technician to Supervisor
• Police Reclass Administrative Secretary
Reclass Officer to Sergeant
Upgrade to Full-Time Records Clerk
• Fire Reclass Administrative Secretary
• Library Reclass Public Services Librarian
• Utility Administration Reclass Secretary 1 to Administrative Secretary
• Utilities (Water) Reclass Crewleader to Water Quality Specialist
• Engineering Reclass Inspection Supervisor
• Utility Billing Upgrade to Full-Time Utility Billing Clerk
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FY 2007-08 Recommended Budget
Highlights
• $750,000 for General Fund Street Improvements
• Addition of Modular Office Building for Parks/Recreation
• $100,000 to Pave City Property on Jackson Street for Downtown Parking
• Phone Allowance to Comply with IRS Regulations
• GIS — NCTCOG's "iCommunity"
Combines internet and map technology with local government planning, economic
development, and geographic information systems (GIS) resources.
•: Allows citizens to access/print neighborhood maps featuring zoning and parcel boundaries.
• Provides detailed information on economic development sites.
•:• Provides city staff with access to GIS assets through a web browser.
• Access http://www.nctcog.org/ris/icommunities.asp for additional information and listing of
cities using iCommunity. Click on the city links to access their individual iCommunity
systems.
• Possible Debt issues in 2007-08
Issuance of$12 million CO to cover costs above voter authorized bonds for Library, City Hall
& Rec Center.
Issuance of$38 million CO for voter authorized bonds.
Issuance of $2 million CO to cover costs above voter authorized bond for Fire Station Three.
■
Opportunities for Citizen Review &
Input
• Proposed Budget Filed with City Secretary 08/03/2007
• Adoption of Resolution Setting Dates of Public Hearings 08/14/2007
• 1st of Two Public Hearings on the 2007-08 Tax Rate 08/28/2007
Hold a Public Hearing for the FY 2007-08 Budget 08/28/2007
• 2"d of Two Public Hearings 08/30/2007
Schedule & Announce Meeting to Adopt Tax Rate 2007-08 08/30/2007
Information regarding the proposed budget also will be available
at Smith Public Library and online at
wwvv.wylietexas.gov/budget
■
Questions ?
City Manager
Mindy Manson
972-442-8120
mindy.manson@wylietexas.gov
Finance Director
Larry Williamson
972-442-8141
larry.williamsonwylietexas.gov