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Regular Meeting September 5, 2006 Page 7 I A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, CONSIDER ADOPTION OF RESOLUTION APPROVING A CONTRACT WITH BMC REAL ESTATE, INC. FOR THE CITY'S ACQUISITION OF A TRACT OF PROPERTY IN THE RIVER RIDGE DEVELOPMENT; AND DECLARING AN EFFECTIVE DATE. Mr. Guerrero moved for adoption of the Resolution, and Mr. Thomaides seconded the motion. Mr. O'Leary stated this contract is for the purchase of 3.994 acres of property located at Lot 18 River Ridge Subdivision, which is located within the boundaries set by the Consulting Engineer in the 2005 Fire Study. He also stated the purchase piece is $1.70 per square foot and the utilities are available, access roadway already exists and the property is adjacent to the City owned clock tower park property. The Council then voted unanimously for adoption of the Resolution. I Mayor Narvaiz introduced a discussion regarding the proposed FY 2006-2007 Budget, property tax rates and direction to Staff. Mr. O'Leary provided the Council a handout regarding Social Service Agencies, Human Service Advisory Board recommendations and City Council allocations for 2006 and 2007. Mayor Narvaiz stated the Human Services Advisory Board recommended not funding the Community Action, Inc.'s Georgia Street program, then at the first budget hearing, the Council agreed to budget $5,000.00 out of the General Fund Balance. She stated then the Council wanted to fund Georgia Street at $10,000.00. Mr. Thomaides stated he and Mr. Jones met with the Boys and Girls Club who did not submit a request for funding. He stated he would support funding the Community Action Inc. Georgia Street at $5,000.00 and the Boys and Girls Club at $5,000.00. Mayor Narvaiz stated the Council and Human Service Advisory Board set goals and rules for the allocation of funds. She stated now the Council is being asked to consider funding groups who were not funded or did not go through the allocation process. She stated she feels if the Council funds these groups, they will be setting precedent for the future. She stated she also feels the Council needs to hold a Workshop with the Human Services Advisory Board to clarify the rules and procedures of Social Services Funds. Mr. Diaz stated he feels the Boys and Girls Club is a worthy program, but they did not go through the request process. Mr. Jones stated he feels the Council should fund the Boys and Girls Club program, since the programs were not looked at by group by group. Mr. Guerrero stated he feels the Council needs to maintain consistency, and will stand strong with Human Services Advisory Board's recommendation. He stated he also feels the Council needs to hold a Workshop to work on the process with the Advisory Board for next year's allocation process. Mr. Mihalkanin stated he feels the Council needs to be careful with setting precedent. He stated he is okay with funding Community Action Inc. Georgia Street program at $5,000.00, but not the Boys and Girls Club. Mr. Diaz stated he agrees with Mr. Mihalkanin. The Council agreed by consensus to fund the Community Action Inc. Georgia Street program at $5,000.00. I Mayor Narvaiz introduced a discussion regarding increasing Over 65 Tax Exemption and direction to Staff. Mr. O'Leary stated State Law provides