07241995 Regular Meeting - Laserfiche WebLink

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18 Regular Meeting July 24, 1995 Page 2 Mayor Pro-Tem Mooney introduced for consideration approval of two appointments to the Charter Review Commission. Mayor Pro-Tem Mooney moved to appoint Ted Hindson and the name of H.C. Kyle, III on behalf of Mr. Hart. Councilmen Moore, Guerra and Hernandez stated they would submit names at the next meeting. Mr. Moore seconded ( the motion, which passed unanimously. Mayor Pro-Tem Mooney introduced for consideration approval of one appointment to the Zoning Board of Adjustments & Appeals. Mr. Moore moved to submit the name of Sharon Krebs. Mr. Guerra seconded the motion which passed unanimously. Mayor Pro- Tem Mooney introduced the City Manager's proposed 1995-1996 Budget. Mr. Gilley stated everyone had received copies of the budget and would have copies for the public to review. Mr. Gilley stated he appreciated the help of the staff who have been involved in the budget process. Mr. Gilley stated the format was different this year in that it is easier to read and very easy to follow the proposals that are included for revenues and expenditures. Mr. Gilley pointed out in the transmittal.letter the highlights that have been noted including a balanced budget of $53,721,485 which represents a 7.5% overall increase over last year's budget. Mr. Gilley stated staff is proposing no increases in the property tax rate and no increase in the water or electric utility rates. Mr. Gilley stated there is a proposal for an increase of wastewater rates. Mr. Gilley stated the staff is proposing a 53% increase in the revenues for the wastewater system which is driven by the expansion and upgrade of the wastewater treatment plant as well as the improvements to the collection system. Mr. Gilley stated sales tax revenue is leveling off, and in this budget it addresses that. Mr. Gilley further stated that while the City still has a very healthy revenue source in sales taxes, it will not be seeing a significant or dramatic increase in the sales tax collections. Mr. Gilley sta'ted there are some major initiatives that are part of the budget that include the voter approved wastewater plant expansion and collection system upgrade, the surface water treatment plant, the activity center and the implementation of the CIP 1995-96, which is reflected as being funded in this particular document. Mr. Gilley stated he is looking forward to looking at the budget more closely with the Council at the upcoming budget workshops. Mr. Moore asked Mr. Gilley to explain the increase in the wastewater rates and where did it place the City in terms of comparable cities around the state. Mr. Gilley stated the reason for the increase was because the City is expanding the wastewater system facilities from a 6.2 million gallon per day capacity to a 9 million gallon per day capacity and upgrading the quality of the effluent from a current 20-20 permitted effluent quality to a 5.5.2 which is the strictest permit issued by the Texas Natural Resource Conservation Commission. Mr. Gilley stated in addition the City is making considerable improvements to the collection system and dealing with infiltration and inflow throughout the system so we can have a much more efficient and safe collection system. Mr. Gilley stated all of those improvements cost a great deal of money and the City is preparing to deal with that by issuing some debt to design the work to be done and to fund the wastewater system master plan and will soon be issuing additional debt to actually complete the construction portion of those projects. Mr. Gilley stated the increase would put the City with other cities the size of San Marcos, and cities generally in terms of wastewater treatment costs. The City is still roughly in the middle of the pack. Mr. Gilley stated the City would have a very highly efficient system but yet the wastewater costs could be the most expensive in the region or the state. Mr. Gilley stated right now the City is at the lower end of the scale in terms of wastewater treatment costs and this would move us up slightly above the middle of the average state break. Discussion ensued. Mr. Hernandez stated he had received a letter in opposition to the increase in the wastewater rate. Mr. Hernandez stated he would make copies available to the Council. Mayor Pro-Tem Mooney moved to propose Monday, August 14,1995 at 7:30 p.m. as the formal public hearing date on the Budget. Mr. Guerra seconded the motion which passed unanimously. Mayor Pro-Tem Mooney announced to the public