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56 <br />Regular Meeting September 14, 1998 Page 11 <br />utility entirely funded through the drainage utility fee. The <br />difference is if you look at a $250,000 fund transfer, that is <br />about 2 1-? cents on our current tax rate, leading to an average <br />homeowner paying $45.84 annually, combining the $2.41 monthly <br />drainage utility fee and the general fund transfer. A simpler <br />approach is to assume the same $1 million cost of service and <br />fund it through the drainage utility fee entirely which would be <br />$3.21 monthly or $38.52 annually for residential property <br />owners. Mayor Moore stated the Blue Ribbon Bond Committee <br />recommended the Council pass the utility rather than taking it <br />under c.i.p. Mr. Jenkins stated the average drainage utility <br />fund rate for the 21 Texas cities listed in the cost of service <br />study was about $2.50 monthly. Mr. Jenkins stated the next step <br />is the decision of whether to create the utility. Once the <br />decision is made to create the utility, a draft Ordinance will <br />be brought to the Council for consideration and public hearing <br />followed by development of the billing procedures. Next would <br />be a public hearing for the adoption of the drainage utility <br />rate. One of the final steps before the billing would begin <br />would be a test billing to provide feedback from the customers <br />to make sure the determination of impervious cover and property <br />use is correct. A test bill would be sent out at least two <br />months before the billing would begin to make sure our records <br />are correct. Mr. Jenkins advised it would be $2.41 monthly for <br />each residential customer. Single family would be $2.41, a <br />duplex would be two times that, and multi-family would be <br />charged by the unit also. It was> consensus of Council to <br />proceed on the course set by Staff. <br />Mayor Moore introduced the City Manager's Report. Mr. Gilley <br />verified with the Council the new Workshop date with Ms. Jackson <br />would be Saturday, October 3, 1998, and we would be posting that <br />agenda. Mr. Gilley stated in reference to Dr. Supple's letter <br />regarding the September 21, 1998 breakfast, we would need to <br />post this as a Workshop meeting. <br />Mayor Moore introduced the City Attorney's Report. Mr. Taylor <br />had no report at this meeting. <br />Mayor Moore introduced the City Council's Report. (1) Ms. <br />Hughson inquired of the times when construction could begin and <br />end. Mr. Gutierrez stated this was set out in state law. The <br />Council would like this subject agendized for a future meeting. <br />(2) Mayor Moore stated he would be attending a National League <br />of Cities Steering Committee Meeting this weekend regarding <br />economic development. (3) Mr. Cox stated he would be attending <br />a National League of Cities EENR Steering Committee Meeting this <br />week in Tucson, Arizona regarding urban sprawl. <br />Mayor Moore introduced an Executive Session pursuant to the <br />Government Code, Section 551.071, to discuss pending litigation <br />(TNRCC Reuse Permit Proceeding; City of San Marcos vs. TNRCC) <br />and matters where the City Attorney's ethical duty to the City <br />clearly conflicts with Government Code Chapter 551 (taxes on <br />SWTSU property), Sections 551.072 and 551.073, to discuss the <br />purchase of real property (Schulle Canyon area), and Addendum, <br />to discuss lease of real property (Old First Christian Church <br />property); and Section 551.074, to discuss duties of public <br />officers (City Council Members; City Manager, City Secretary,