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218. Regular Meeting September 10, 2001 Page 5 Ms. Tatum moved for adoption of the Ordinance on emergency and Ms. Hughson seconded the motion. Mr. Mihalkanin stated he is concerned about the increase in water and wastewater, drainage utility fees and an increase in appraised value of property. Ms. Hughson confirmed with the City Manager there would be no increase in water and wastewater this year nor has there been for two years. Ms. Tatum stated she is concerned about the tax increase. Ms. Tatum stated she is struggling with the tax increase. Mr. Gilley stated he is concerned with a tax increase. He stated the City began its budget process in January and the February Policy Statement Workshop. Mr. Gilley stated the Council asked for a heads up, and this was provided. The proposed tax increase was for 5 cents, and was then reduced to 2-1/2 cents. The City has received a steady increase in sales tax, and this has been able to reduce the tax rate. The City knew some time ago there would be a tax increase with the new fire station, staff for the fire station, and the new animal shelter and associated staff. Mr. Gilley stated he did not think there were any surprises. He stated there is a sound budget before the Council. Mr. Gilley stated the budget process included the Council, Staff and citizens. Mr. Gilley recommended approval of the Budget. Ms. Hughson requested Mr. Gilley state the increase for the average appraised horne, and Mr. Gilley responded $52.26. On roll call the following vote was recorded: AYE: Hughson, Chiu. NAY: Mihalkanin, Montoya, Tatum. ABSTAIN: None. The motion failed. Mr. Montoya moved to reconsider the Ordinance and Ms. Hughson seconded the motion, which passed unanimously. Mr. Taylor advised the Council the Charter states the Budget must be adopted by September 15, or last year's Budget will become the Budget. In Section 2 of the Tax Rate Ordinance, Subsections A and B would need to be changed if a different tax rate is proposed (for operations and maintenance and sinking fund to retire bonded debt). Mr. Mihalkanin stated a Special Meeting would need to be scheduled. It was direction of Council to schedule Council Meetings September 13, 14 and 15 for consideration of setting a tax rate and adopting a Budget for FY2001-2002. Mayor Chiu introduced for consideration adoption of an Ordinance on emergency, the caption which was read as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, ADOPTING A BUDGET FOR THE FISCAL YEAR BEGINNING ON OCTOBER 1, 2001 AND ENDING ON SEPTEMBER 30, 2002; AUTHORIZING CERTAIN ADJUSTMENTS TO THE BUDGET WITH THE APPROVAL OF THE CITY MANAGER; APPROVING FISCAL YEAR 2001-2002 CAPITAL IMPROVEMENTS PROGRAM PROJECTS; INCLUDING PROCEDURAL PROVISIONS; AND DECLARING AN EMERGENCY.