Item 5A (2)City of Southlake
CITY COUNCIL JUNE RETREAT MEETING
DPS WEST FACILITY - COMMUNITY ROOM
DAY ONE — JUNE 19, 2003
MINUTES
CITY COUNCIL PRESENT Mayor Andy Wambsganss, Mayor Pro Tern W. Ralph Evans,
Deputy Mayor Pro Tern Rex Potter (arrived at 7:02 p.m.); Councilmembers: Carolyn Morris,
Greg Standerfer, and Tom Stephen.
CITY COUNCIL ABSENT Keith Shankland.
STAFF PRESENT City Manager Billy Campbell, Assistant City Manager Shana Yelverton,
Assistant to the City Manager John Eaglen, Community Services Director Malcolm Jackson,
Finance Director Sharen Elam, Planning Director Bruce Payne, Deputy Director of Public Works
Charlie Thomas, Director of Economic Development Greg Last, Director of Public Safety Rick
Black, Interim Fire Chief Bobby Finn, Deputy Director of Administrative Services Garland
Wilson, Director of Human Resources Kevin Hugman, Manager of Technical Services Gary
Gregg, Assistant to the Public Works Director Valerie Bradley, Executive Secretary /Office
Manager Kim Bush, City Manager's Office Intern Kim Springer, and City Secretary Lori
Farwell.
Agenda Item No. 1, Opening Comments Mayor Wambsganss called the meeting to order at 6:10
p.m. City Manager Billy Campbell welcomed Council and guests and stated that the purpose of
the Retreat is to take some informal time to begin preparations for the upcoming budget year.
Agenda Item No. 2, Discussion
Year In Review — Fiscal Year 2002 -03 Assistant City Manager Shana Yelverton presented
information to Council regarding the current budget year. The FY 2002 -03 general fund budget
was adopted with a reduction of 10 positions, deferral of certain personnel and capital costs, and
denial of many new requests. In addition, the tax rate was adjusted to $.462. The utility fund
budget included increases in standard and volume rates, and the water rates were increased for
volume usage exceeding 10,000 gallons.
Assistant City Manager Yelverton recapped some of the issues that formed the framework for
budget development for FY 2002 -03 and for future fiscal years. Discussions included a detailed
review of revenue /expenditure performance as well as financial highlights of the year.
Fiscal Year 2003 -04 Budget Process Finance Director Sharen Elam led a discussion which
covered considerations that will guide budget development, as well as provide an opportunity for
Council and staff to discuss revenue projections and anticipated development activity.
Director Elam reviewed FY 2003 -04 revenue projections, property tax projections and collection
rates, economic growth patterns, and sales tax projections and trends.
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The City Manager's recommended budget will be filed with the City Secretary's Office no later
than August 15, 2003. Formal budget work sessions will be conducted with the Council in late
August. The budget must be adopted no later than September 30, 2003.
Mayor Pro Tern Ralph Evans asked to see a breakdown of building permits by school districts.
A break was called for at 6:47 p.m. and the meeting was called back to order at 6:58 p.m.
Progress of ongoing Capital Improvement Program projects Deputy Director of Public Works
Charlie Thomas informed the Council of the status of the ongoing CIP projects listed below:
1. Redundant Water Supply Line from Fort Worth
2. South Kimball Ave. Reconstruction — SH 114 to Crooked Lane (west half)
3. TMB Proposition 3, Trails 2A — Pearson to SH 114
4. North Peytonville Avenue Reconstruction
5. Johnson Road Reconstruction
6. South Kimball Ave. Reconstruction — FM 1709 to Heritage Business Park (east half)
7. FY 00 -01 Water & Sewer Projects (Sewer for Garden Addition and the associated main to N-
1 interceptor, Cedar Oaks Estates, & Hillside Estates; Southlake Woods lift station
abandonment: Water for Lakewood Ridge Addition and Indian Creek Estates; drainage
improvements at the intersection of Lonesome Dove Avenue & Dove Road; and pump
relocation from Pump Station No. 2 to Pump Station No. 1)
8. Union Church Road / South Pearson Lane Rehabilitation
9. North Carroll Avenue Reconstruction — Federal Way to SH 114
10. Randol Mill Avenue Rehabilitation
Mr. Thomas presented to Council the timeline, progress, and budget for each project.
A break was called for at 7:30 p.m. and the meeting was called back to order at 7:36 p.m.
Personnel Budget issues Director of Human Resources Kevin Hugman presented information to
Council regarding personnel budget issues, pay plan structure, pay plan goals, and the history of
the pay plan.
Director Hugman stated that a large portion of the City's operating budget (approximately 68 %)
is related directly to personnel costs. The City pays wages to 230+ full -time employees, as well
as provides employee benefits such as vacation, sick leave, health and dental insurance, long-
term disability and life insurance, worker's compensation, accidental death and dismemberment,
retirement costs, etc. The two largest components of personnel costs are (1) wages, and (2) health
insurance costs. Director Hugman discussed budget planning efforts related to these two
components. The Council discussed tenure increases versus merit increases for employees.
Council agreed that it is critical for staff to complete a new salary survey since the last one was
done in 1999.
Director Hugman discussed the increasing costs of healthcare premiums and employee insurance
issues with Council. He reviewed various factors that affect insurance costs and presented cost
containment efforts to Council.
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Staff presented to Council the item on Economic Incentives originally scheduled for Day Two of
June Retreat.
Economic Development issues Director of Economic Development Greg Last presented
information to Council regarding economic incentives for business prospects. He also discussed
various types of prospects as well as the potential incentives for those prospects. He reviewed the
City's current tax abatement policy with Council and discussed possible amendments to the
policy.
Deputy Mayor Pro Tern Rex Potter suggested having a Council work session on economic
incentives and the tax abatement policy.
Agenda Item No. 3, Adjournment: There being no further business to discuss on Day One of the
Retreat, the meeting was adjourned at 9:10 p.m.
Andy Wambsganss
Mayor
ATTEST:
Lori A. Farwell
City Secretary
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