06242002 Regular Meeting - Laserfiche WebLink

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Regular Meeting June 24, 2002 77. Page 9 table this Resolution until the Regular Meeting on July 8, 2002, and Ms. Narvaiz seconded the motion, which passed unanimously. Mayor Habingreither introduced for consideration Item 18 removed from the consent agenda, adoption of a Resolution, the caption which was read as follows: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, REJECTING THE BID SUBMITTED FOR THE ALL TERRAIN LETTER VAC FOR THE MAIN STREET PROGRAM; AND DECLARING AN EFFECTIVE DATE. Ms. Tatum moved for adoption of the Resolution, and Mr. Mayhew seconded the motion. Mr. Mihalkanin inquired how these bids did not meet the specifications. Rodney Cobb, Director of Parks and Recreation stated all the bids received were over the specified amount. He also stated the specifications are being reviewed for rebid. Mr. Mihalkanin stated he would like the cost of this equipment shared with the Main Street Program, Parks and Recreation and Public Works. The Council then voted unanimously for the adoption of the Resolution to reject all bids. Mayor Habingreither introduced a discussion regarding overview of City of San Marcos' financial condition. Mr. O'Leary stated some of the Council Members have asked for a financial assessment of the General Fund, since Bill White, the Director of Finance, will soon be leaving the City of San Marcos. Mr. White provided a handout showing Investment Grade Ratings. He explained many cities are experiencing the same shortfalls. Mr. White stated some of the shortfalls are due to losing $207 million for Hays Energy and $5 million for HEB tax abatements. Dan Wegmiller stated he is with First Southwest Company Investment Bankers, who is the Cities financial advisors. He stated his company assists the City's with the process of bond ratings. Mr. Mihalkanin inquired how much debt the City can withstand right now. Mr. Wegmiller stated this depends on the tax rate, amount of debt load and the type of investments the City is considering. Mr. O'Leary inquired whether the Council would like him to continue building the City's budget based upon the prior Council's direction, or should he address shrinking the shortfall between the revenues and expenditures. Mayor Habingreither stated he would like to address shrinking the disparity between the revenue and expenditures. Mr. Mayhew stated he would like Mr. O'Leary to identify possible ways of shrinking the shortfall between the revenues and expenditures. Ms. Tatum stated she would also like Mr. O'Leary to look at ways to reduce the expenditures, and is not in favor of a tax increase. Mr. Mihalkanin stated he would like the Finance Department to provide the Council with an explanation to where the extra revenues from 1997 and 1998 went. He also stated he would like the Council to be given a quarterly report to let the Council know where the City stands in terms of projects. Ms. Narvaiz stated she would like to see the City become less dependent on sales tax. Mr. O'Leary stated it could take a few years to get the expenditures to equal the revenue unless drastic cuts are made. He stated the Staff has