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HomeMy WebLinkAbout1995-09-18 MINUTES OF A SPECIAL CALLED MEETING OF THE EULESS CITY COUNCIL SEPTEMBER 18, 1995 CALL TO ORDER A Special Called Meeting of the Euless City Council was called to order by Mayor Pro Tern Bobby Baker at 6:20 p.m. on Monday, September 18, 1995, in the downstairs Administration Building Conference Room. Those present included Mayor Pro Tern Bobby Baker and Council Members Charles Miller, Todd Smith, Carl Tyson and Glenn Walker. Mayor Mary Lib Saleh was absent. The meeting was convened into closed session at 6:22 p.m. to discuss land acquisition as authorized by Section 551.072 of the Texas Government Code. COUNCIL CONSIDERATION OF SCHEDULED ITEMS - COUNCIL CHAMBERS The Euless City Council continued their meeting in the Council Chambers at 7:00 p.m. for the consideration of scheduled items. Staff Members Present City Secretary Susan Crim; Police Chief Gary McKamie; Finance Director Diana Ortiz; Director of Administrative Services/Economic Development Tom Cox; Director of Community Services Rick Herold; Captain Harland Westmoreland, Police Department; Captain Joey Ziemian, Police Department; Captain Rod Davis, Police Department. Visitors Leon Hogg, Chairman, Parks and Leisure Services Board; Keith Eggers, Planning and Zoning Commission; Katie (Matzke) Edwards DISCUSSION OF SALES TAX OPTIONS ALLOWED BY STATE STATUTES Police Chief Gary McKamie reviewed the 2-year Crime Control Plan outlining strategies and resources required to strengthen neighborhoods by decreasing crime, reduce juvenile crime and victimization, increase community involvement in crime prevention efforts and to provide safety and security in an expanded parks system. Chief McKamie also reviewed proposed revenues and expenditures through the end of fiscal year 1996-97, with retained earnings at the end of that year totalling $620,292. COUNCIL MINUTES SEPTEMBER 18, 1995 PAGE 2 "`" Chief McKamie discussed three election date options regarding implementation of the crime control and prevention district and outlined the time schedule for each of the options. The earliest the election could be held is November 7, 1995, and other options proposed include election dates of January 1996 or August 1996. Chief McKamie explained that the resolution the Council will be considering would create a temporary board of directors for the proposed Crime Control and Prevention District. If the resolution is passed, it simply enables calling an election sometime within the next five years, but does not require that an election be called. A public hearing notice has been published and is scheduled to be held September 29, 1995. At that time, a chairman of the temporary board will be elected by the members of the temporary board. The election may or may not be called at that meeting. Mayor Pro Tem Baker asked what would happen if the election were called for November 7, 1995 and it failed. Chief McKamie replied that the city could not call another election for this purpose for a period of one year. At the September 29, 1995 meeting, the public hearing would be held, a chairman of the temporary board will be elected, the two year plan would be presented for approval, and calling the election would be considered if the Council desires to have a November 7, 1995 election. If the Resolution No. 95-910 is approved at this meeting, the chairman would need to be elected within 15 days of September 18, 1995, even if the Council chose not hold the election on November 7. Mayor Pro Tem Baker asked if anyone in the audience had questions they would like to ask. No one in the audience had questions. Chief McKamie pointed out that approximately 33% to 50% of the projected revenue would come from non-Euless residents. Chief McKamie said the 33% figure was based on figures which were used in the Half Cent Sales Tax election in 1993, and the 50% figure came from the management of Home Depot who estimated that 50% of their sales come from non-Euless residents. Council Member Miller questioned whether the 50% figure would be accurate for other businesses in the city. Finance Director Diana Ortiz replied that Home Depot, Ross, Burlington and Sutherland's are regional type stores and would have a higher percentage of non-Euless resident shoppers than other stores, where 33% would be a more accurate percentage. Council Member Smith questioned the accuracy of these figures. Ms. Ortiz said that she could check with the State Comptroller's office about sales tax figures in the city. Mayor Pro Tern Baker stated that a disproportionate number of residents in the city live in multi-family housing and that as a result a disproportionate amount of time is spent by the Police Department within apartment complexes. Also, because of the density of multi- family housing, property taxes are also paid in a disproportionately larger amount by single family residents. The crime tax is a fair tax in that everyone contributes, including those �,.. who don't live in our city but who shop here. Council Member Walker said that the wealthier people will spend more money and, therefore, will pay more sales tax. COUNCIL MINUTES SEPTEMBER 18, 1995 PAGE 3 Council Member Miller asked City Attorney Wieneskie about the cap on sales tax and how the city would be affected if the State were to implement another sales tax option. Mr. Wieneskie stated that sales tax caps are contained in individual laws that authorize extra sales taxes, but the cap remains at 2% above the state sales tax. Council Member Walker asked if the city could designate the first two years of this tax for the Crime Control District and the last three years to reduce property taxes. Mr. Wieneskie replied that the entire five years would have to be designated for the Crime Control District. Council Member Smith stated that he felt the law allowed for dissolution of the crime tax prior to the expiration of the 5-year time period. So, if the city chose to replace that with a half cent property tax reduction, the city would merely have to call an election for that purpose. Mr. Wieneskie confirmed that Mr. Smith was correct in this assumption in that if the Crime Control District Board chose to reduce the half cent tax to a quarter cent, that would free up a quarter cent to use for another purpose. Council Member Miller questioned if the mall were to become a reality, would this allow the Crime Control District tax to be dissolved. Council Member Smith stated there was clearly provision in the law which would allow dissolution, but questioned if the city could put the question to the voters in such as a way that the city would be bound to dissolve the tax if the mall is built. Mayor Pro Tern Baker said he felt that this tax would be more attractive with the mall in place with 90% of non-Euless residents paying for it. Council Member Tyson agreed and said that you want people who are using the services to pay for them, and those going to the mall would be using the services of the crime district. Council Member Walker indicated that if the mall is built, there were be an even greater need for additional police officers. Council Member Smith made a presentation to the Council in which he stated that although he is remaining open-minded, he leans toward opposing an election for a crime tax, at least until more definitive information regarding the mall is available. Mr. Smith expressed concerns that the city has found that a revenue source is available and tends to look for ways to spend that revenue, rather than determining what needs to be accomplished and considering the financing options available. Council Member Smith said that over the 5- year period of the crime tax, it is estimated that approximately $9 million in additional sales taxes would be generated. Of this amount, $6 million would be paid by Euless residents. Mr. Smith offered alternatives to the half cent crime tax which would result in Euless residents paying only $1 million of the $9 million expenditures proposed. The city's one and one-half cent sales tax would provide $3.5 million in revenue from mall sales in the first year, according to figures provided by City Manager Tom Hart. This figure would grow to $11.2 million in year 10, with a total of $79.1 million of additional new revenue created entirely by the development of the mall during the ten-year period beginning with a mall opening date in 1998. This revenue would be collected mostly from non-Euless residents. Council Member Miller asked what would be the first year the city would realize any return on the mall. Council Member Smith said that figures from City Manager Hart assume a mall opening in mid-1998, with revenue available in 1999. Council Member Miller asked Community Services Director Rick Herold when the athletic complex would be open. Mr. Herold replied he expected it to open around the beginning of September 1997. Council Member Smith said he felt the projects could be funded on the same schedule from the mall proceeds as from proceeds of the crime tax and still benefit Euless citizens because COUNCIL MINUTES SEPTEMBER 18, 1995 PAGE 4 they would be funding approximately $1 million through mall-generated sales tax versus $6 million through the crime tax. Council Member Smith said that by utilizing mall revenue to fund crime control efforts, the city preserves the half cent sales tax to be used to reduce property taxes. Mayor Pro Tern Baker stated that $79.1 million looks like a lot of money, but if the mall becomes a reality there is a tremendous amount of funds required for infrastructure, utilities, fire and police protection, etc. The city has to be prepared ahead of time for these projects and the crime tax would assist the city in being ready to meet the tremendous need for additional services. Additionally, there are other existing needs that have not been addressed because of lack of funds, such as Pipeline Road where drainage improvements could cost several million dollars. Council Member Walker said all that needs to be decided at this meeting is whether or not to propose the crime tax district. Mr. Walker stated he felt the citizens deserved the extra protection that the crime tax would afford them during the next two years, before the mall would even be finished. Mayor Pro Tern Baker asked what the half cent sales tax would cost the average citizen in Euless. Council Member Walker recalled that during the Half Cent Sales Tax election in 1993, a figure of a little over one dollar per month was used to indicate how the half cent tax would affect each citizen. Council Member Miller said he felt the needs of the Police Department are valid, but felt that Option 1 (a November 7, 1995 election) is being pushed. Mr. Miller said he didn't have a problem with Resolution No. 95-910, but rather with the rush to complete the requirements to hold a November 7 election. Council Member Miller stated that if the city passed the crime tax it would make the city's tax rate the same as other cities in the area, and it would allow the city to reduce the ad valorem tax when the mall comes in. Chief Gary McKamie said that he was not pushing to hold the election on November 7, but wished to present all available options to the Council. Chief McKamie stated that all of the items listed in the proposed crime tax budget are needs that have been brought to the Council in the past. APPROVAL OF RESOLUTION NO. 95-910 Mayor Pro Tern Baker said that by adopting Resolution No. 95-910, a temporary board which is required to have seven members will be appointed. It has been discussed that the members of the Council would be appointed to that board, but because of the current vacancy, City Manager Tom Hart would be appointed until the November election if Council agrees. Council Member Miller said that he was not aware that Mr. Hart would be appointed and felt that a citizen should be appointed to the Board. City Secretary Susan Crim stated that the reason Mr. Hart volunteered to be appointed was that he would �,. voluntarily resign when a new Council Member is elected in November, whereas if a citizen COUNCIL MINUTES SEPTEMBER 18, 1995 PAGE 5 `�- is appointed, the Council would have to ask them to resign if they wished to appoint the seventh member of the Council. Council Member Walker moved to approve Resolution No. 95-910, proposing the creation of a crime control prevention district and appointing Tom Hart as a temporary member of that board to serve until November 7, 1995, or whenever a new Council Member for Place 6 is elected. Council Member Tyson seconded the motion. Ayes: Council Members Tyson and Walker, Mayor Pro Tem Baker Nays: Council Members Miller and Smith Mayor Pro Tern Baker declared the motion carried. ADJOURN Mayor Pro Tern Baker adjourned the meeting at 8:35 p.m. APPROVED: Bobby Bak , Mayor'Pro Tem '�.. ATTEST: Susan Crim CMC, City Secretary \wpwin\m i n ute s\9-18-95.m in