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HomeMy WebLinkAbout1995-09-29 CCPD Minutes MINUTES OF A CALLED MEETING TEMPORARY BOARD OF DIRECTORS PROPOSED CRIME CONTROL AND PREVENTION DISTRICT SEPTEMBER 29, 1995 CALL TO ORDER A called meeting of the Temporary Board of Directors of the Proposed Crime Control and Prevention District was called to order by Chairman Carl Tyson on Friday, September 29, 1995, at 5:35 p.m. in the Council Chambers. Those present included Chairman Carl Tyson, Vice Chairman Charlie Miller, Secretary Todd Smith and Board Members Bobby Baker, Mary Lib Saleh, Tom Hart, and Ron Shields (proxy for Glenn Walker). Staff Members Present Bob McFarland, City Attorney; Joe Hennig, Assistant City Manager; Gary McKamie, Police Chief; Lee Koontz, Fire Chief; Diana Ortiz, Finance Director; Joey Ziemian, Police Captain; Rod Davis, Police Captain; Marcos Valladares, Police Officer; John Williamson, Police Officer; Scott Campbell, Administrative Assistant; and Becky Null, Administrative Secretary Visitors Lou Baum, Sue Lucas, Evelyn Thomas, Barbara Lucas, Michael Scoma, Lewis Lowe, Donna Hooker, Leon Hogg, Eric Owens, Kathy Haecker, Gary Haecker, Geri Donworth, Patricia Beaver, Sarah Chandler, Katie Edwards, Wes Scott, Larry Bradford, A. D. Shaeffer, Janice Griffin, Dale Douglass, and David Frey EXPLANATION OF PURPOSE AND ORDER OF MEETING Prior to calling the meeting to order, Chairman Tyson explained that this meeting is not a Council Meeting, but a Temporary Board of Directors Meeting for the Proposed Crime Control and Prevention District. He also noted that Ron Shields was sitting in for Board Member Glenn Walker. He stated that city staff would make a presentation first, followed by board member comments and then hear comments from the citizens in the audience. He asked that anyone wishing to speak fill out a Speaker Registration Form. City Attorney Bob McFarland explained the background of this board and its authority, explaining that any board member except the chairman can designate a proxy to attend the meeting in the member's absence. He explained that the two issues the temporary board is authorized to determine are consider approval of the budget plan and crime plan. .., Only after those plans are approved can the Board call an election. It will require four affirmative votes, which is a majority of the Board and not a quorum, to adopt either one- ' • ' TEMPORARY CRIME CONTROL BOARD SEPTEMBER 29. 1995 PAGE 2 quarter or one-half cent sales tax. The permanent board can reduce the tax amount from one-half cent, if approved, to one-quarter center, but not to zero. It cannot, however, increase the amount to one-half from one-quarter cent, if approved, or abolish the board without another election. Once the tax is approved by voters, a permanent board will be appointed by the City Council to manage the affairs of the board. Once approved, the tax and board will be in effect for five-years. If the election is called for November, the tax would not commence collection until April, 1996. City Attorney Bob McFarland explained that the City Council Meeting scheduled for Saturday, September 30, 1995, at 10:00 a.m. to call an election to reduce the ad-valorem tax by one-quarter cent was cancelled due to the city charter requiring that ordinances be considered at regular council meetings. ITEM NO. 1: HOLD PUBLIC HEARING ON WORK PROGRAM AND BUDGET FOR A PROPOSED CRIME CONTROL DISTRICT Police Chief Gary McKamie distributed a handout to the Board which contained the goals, two-year budget, and five-year projected needs. He began the staff presentations by listing the goals of the Crime Control and Prevention Plan. He also listed the items needed that would be provided under the plan, including additional police officers, computer system upgrade, cadet program, first offender counseling, training, new police building, and the continued support of the radio system being funded in the budget this year. He stated that there are recurring expenses, as well as one-time expenses. The approval of the crime tax would be for five years unless approved again by the voters in another election. The two-year budget, which would be voted on at this meeting, totals expenditures of $983,159 for personnel, computer equipment, crime prevention, capital equipment and mall contingencies (utilized only if mall is constructed). He noted that the debt retirement on the proposed police building will be between $400,000 - $700,000 on a $4 - $7 million building. He stated that the proposals are conservative and expectations are realistic. He hopes this will be considered a community project and not just a police department project. City Manager Tom Hart stepped out of his role as temporary board member and made a presentation as staff member. He applauded Police Chief Gary McKamie for his approach to the budget, stating that Gary came up with a conservative resource list to address the public safety needs within the next few years. He stated that he has not heard any debate from the Board on the need for the crime project. The only comments have been on how to fund those needs. He stated that there are three basic sources of revenue the City has available to fund public safety functions. They are the proposed crime tax, general fund (primarily made up of 1% sales tax and ad-valorem taxes), and drug fund (which is shown as an average of $150,000/year, but cannot be counted on at all). With the crime tax there are three options: zero, one-quarter cent, and one-half cent. The argument for the sales tax is that a portion of the sales tax would be paid by someone other than Euless citizens to help fund the projects. ' • TEMPORARY CRIME CONTROL BOARD SEPTEMBER 29. 1995 PAGE 3 City Manager Hart explained that Funding Option 1 does not include the crime tax, but only revenue from the drug fund and general fund. The drug fund provides approximately $150,000/year, projected to bring in $862,500 during this period. The amount from general fund would vary and no amount is shown, so the total known amount would be $862,500. Funding Option 2 includes approving a one-quarter cent crime tax bringing in a projected amount of $4,528,500, the drug fund of $862,500, an unknown amount of general fund for a total projected amount of $5,391,000. Funding Option 3 includes a one-half cent crime tax bringing in a projected amount of $9,057,000, the drug fund of $862,500, an unknown amount of general fund for a total projected amount of $9,919,500. These projections cover a 60-month period. City Manager Hart stressed that the city should not commit to more than the city can fund after the 60-month period is over. Board Member Miller stated that it is actually going to come down to how much working capital will be accumulated at the end of the 60 months to keep those options on the payroll. City Manager Hart stated that Gary McKamie listed only the minimal needs, and did not base it on how much money would be available. Mr. Hart stated that he then made sure that the recurring costs were not so much that at the end of five years it would put the City in the position that it is untenable financially. The low and high expenditures listed in the five-year analysis of projected revenue vs. spending needs were based on the variable cost of the building, which would be built by bond program. The recurring costs would be between $800,000 and $1 million. The debt cost could not be cut, so employees would have to be cut. Without the crime tax there would be a shortage of $4 million to implement the program. With the one-quarter cent, depending on the building cost, there would be a surplus of between $400,000 and $1 million at the end of five years. With the one-half cent option there would be a surplus between $4.9 and $5.6 million. The one-half cent option allows the option to pay, for the most part, cash for the building. City Manager Hart listed the following policy considerations that need to be taken into account: (1) Is there going to be a crime tax and how much?; (2) How much to fund from general fund?; (3) How should recurring costs be absorbed after five years?; (4) If fund balance occurs, how should it be handled?; and (5) How should the facility be financed? Board Member Miller stated that even if the one-half cent tax is approved and would have a higher surplus, at some point that surplus would run out. City Manager Hart mentioned that if the mall is developed, the revenue numbers will increase dramatically and there will also be additional expenses. He stated that he and Gary McKamie are comfortable recommending the one-quarter cent sales tax. There has also been discussion about coming back with a quarter-cent property reduction. There is some merit in that. TEMPORARY CRIME CONTROL BOARD SEPTEMBER 29. 1995 PAGE 4 Board Member Miller stated he could see both sides to the one-quarter and one-half cent tax and believed there should be more thought put into this issue and also the tax reduction that has been mentioned. He asked Mr. Hart if it had to be on a November ballot and whether there is any objection to a January or May election. City Manager Hart stated that there is no objection and that this is a 60-month program whenever it starts. The advantage to a November election is that the program could be implemented quicker. Board Member Baker noted that the law will allow some new programs to begin in January and asked Police Chief McKamie to comment on those. Police Chief McKamie stated that a new juvenile code begins in January which will allow treating juvenile crime offenders as serious offenders. There will be more referral options; i.e., teen court, counselling, etc. Board Member Baker asked Gary McKamie what the estimated recurring cost will be at the end of five years. Police Chief McKamie stated that depending on which building option is used it will be $786,000 to $1,086,000. Also, a majority of the mall contingencies will be recurring if implemented. Board Member Baker asked what the surplus would be at the end of five years on Options 2 & 3, the anticipated cost of the building, and whether the building would be paid for with those options. City Manager Hart stated that on Option 2 there would be a surplus of $400,000 to $1 million. There would be approximately 15 years left on the 20-year bond. The building would cost between $4-$7 million. On Option 3, the surplus would range from $4.9 to $5.7 million. This option gets the building almost paid for. Vice-Chairman Miller asked what the recurring costs would be with Option 3 with the building paid for. City Manager Hart stated that the recurring costs would drop to $400,000/year. Board Member Saleh noted that the recurring cost of$400,000 could be funded from the general fund. Board Member Miller asked if there were mall revenues figured in on the mall contingencies. • TEMPORARY CRIME CONTROL BOARD SEPTEMBER 29. 1995 PAGE 5 City Manager Hart stated that mall revenues were not included. He stated that there could be a year or two of expenses before mall revenue could be collected. However, a rough revenue estimate on the mall would be $1 million on the one-quarter cent and $2 million on the one-half cent tax. Chairman Tyson asked if any of the board members had comments. Board Member Smith stated that when the Council is asked for funds, he asks two questions. Is it necessary, and what is the method of payment that will cost the least to citizens? He agrees that the crime program is necessary. The question is whether to pay for it through sales tax or property tax. The argument for the one-half cent sales tax is that someone other than Euless citizens help fund the program. A separate issue is whether to have a one-half cent sales tax to reduce the property tax alone or have a combination of one-quarter cent sales tax for the crime program and one-quarter cent sales tax for property reduction. He noted that there would be two options to fund the program if the one-quarter cent sales tax for property tax reduction is approved. The one- half cent sales tax could lower property taxes from 60 cents per $100 dollars of value to 43 cents. The first option would be to increase the rate from 43 cents to 51 cents to fund the crime programs, and pay for the police building over time. The second option would be to increase the property tax rate back to 60 cents to pay for the programs and pay •-- cash for the police building. Board Member Smith stated that if the mall comes in, 90% of the mall sales tax generated would come from non-residents. He noted that going with the first option and paying for the police building over time would save the citizens money because the sales tax revenue generated from the mall could be used to pay for the building. Board Member Bobby Baker stated that he is not assuming the city is going to get the mall and is basing his decision on that pretense; although, he hopes the mall does occur. He noted the recurring cost will be very significant. The one-half cent sales tax would bring the recurring cost down to approximately$400,000 and the general fund could cover that amount. He prefers to "pay as you go". He believed the one-quarter cent would cover the needs, but would put the city in debt for 20-25 years. The recurring debt would be $800,000 a year, and the general fund could not cover it as easy. Board Member Mary Lib Saleh stated she agreed with Bobby Baker on his reasoning. She felt the opportunity is there for the first time to get the job done with the one-half cent sales tax. She stated the Council could still look at the budget each year to lower the ad valorem taxes. The ad valorem taxes were lowered one cent this year, as well as last year. She felt the one-half cent proposal would leave extra money in the general fund to fund additional items for other departments. If the ad valorem taxes were lowered, the programs would have to be funded some other way. She felt the Board should listen to the citizens. Board Member Charlie Miller stated he came to listen to the citizens also, but there would not be a public hearing to hear the citizens comments on the ad valorem reduction. He stated there was a lot of credence to Board Members Smith, Baker and Saleh's TEMPORARY CRIME CONTROL BOARD SEPTEMBER 29. 1995 PAGE 6 comments. He further noted that if an announcement on the mall occurs between December and February, the one-quarter cent proposal is viable. He questioned why the rush to have a November election. He stated he would like to see if there is even going to be a mall. He could make a decision tonight, but preferred to wait. He didn't think it needed to be on a November ballot. Board Proxy Ron Shields (designated as a proxy for Glenn Walker) had no comments. Chairman Tyson stated the one-quarter crime sales tax and one-quarter sales tax for property reduction made the best sense and felt it would fund everything. Board Member Baker stated that if the one-half cent proposal is approved and then the mall came through, the sales tax could be reduced one-quarter cent, but it cannot be increased. Board Member Smith stated that if the mall did not come in, the one-quarter cent tax could get extended after five years; that there were plenty of options. At 7:00 p.m., Chairman Tyson stated that the Board would hear from the citizens and that they would hear from those for the proposal first and then from those in opposition. Mr. Lou Baum, 1400 Tanglewood, stated he attended the first citizen police academy. He supported the one-half cent crime sales tax and the election being held in November. Ms. Barbara Lucas, 1015 Collin Drive, chairperson of her neighborhood crime watch, spoke in support of the one-half cent crime sales tax and the election being held in November. Ms. Kathy Haecker, 403 John Vernon, graduate of the citizen police academy, spoke in favor of the one-half cent crime sales tax. She stated that although the city could not afford to pay high enough salaries to cover the risk police officers face, passing the tax would provide moral support. Mr. Mike Utzman, 409 Sunset, spoke in favor of the one-half cent crime sales tax being held in November. He also questioned what the cost would be to hold a special election if it was held off for three to six months. Board Member Miller stated that it would cost $2,500 - $3,000. He felt that the delay in order to get answers to some questions would be worth the cost of the election, because if the one-quarter cent sales tax is the one supported, it cannot be increased later. Board Member Smith noted that if the election was held off until the May General Election, the additional cost would not be incurred. • TEMPORARY CRIME CONTROL BOARD SEPTEMBER 29. 1995 PAGE 7 Chairman Tyson stated that in order to speed the public hearing process, any questions the citizens had would be written down and answered after all citizens had spoken. Mr. Utzman further stated that even if the mall comes in and it is a bust, services will still have to be provided. He supported the one-half cent sales tax election in November. He felt the long-term debt should be reduced because there is no guarantee if the mall will provide the revenue proposed. Ms. Janice Griffin, 1800 Fuller-Wiser Road #716, a member of the citizen police academy, stated she wanted police protection and did not believe the one-half cent sales tax was asking too much. She preferred reducing the one-half cent tax if it was not needed, but would not be happy raising the property taxes at a later date. She would like to see the issue on the November ballot. Mr. Wes Scott, 1802 Toplea, president of the Wilshire Neighborhood Association, stated he supported the one-quarter crime sales tax and the one-quarter property tax reduction. Ms. Geri Donworth, 1308 Shady Hollow Ct., a financial analyst, stated that it did not make sense to go into long-term debt. She did not want to keep waiting on news regarding the mall. She supported the one-half cent tax on the November ballot. Once the mall was developed, the tax could always be reduced. She asked how long it would be before additional officers were hired once the tax was approved. Ms. Patricia Beavers, 1117 Janann, chairman of Euless Library Foundation, stated that the new library would be serving more people which would require more police, and that the funding was needed now. There being no additional proponents, Chairman Tyson asked for any opponents. Mr. Lewis Lowe, 1101 Johns, stated it is the City Council's function to provide police protection over the other items in the budget. He noted that even though the property tax rate was cut, the valuation increased causing the taxes to increase. He supported providing the police programs with the current budget by cutting other items. He felt a lot of the crime issues were caused by increased taxation requiring both parents to work leaving kids to raise themselves. He supported giving the citizens three choices: (1) one- half cent crime sales tax; (2) one-half cent property reduction sales tax; and (3) no tax at all. Ms. Donna Hooker, 405 Wilshire, vice-president of the Wilshire Neighborhood Association, stated she is against the one-half cent sales tax; however, she is for the police programs. She stated that she has had at least a 7% property tax increase this year and wanted to know why the City couldn't use part of that property tax increase to fund the police programs. TEMPORARY CRIME CONTROL BOARD SEPTEMBER 29. 1995 PAGE 8 Ms. Evelyn Thomas, 412 Limestone, questioned why a city the size of Euless couldn't pay for police programs out of the general fund. She was against the sales tax increase. She expressed her appreciation for the police department. Ms. Sue Lucas, who had filled out a speaker registration form, decided not to speak. Mr. Larry Bradford, 1112 Meadowview Dr., stated he is all for the police department; however, he has never seen a reduction in sales tax once it has been approved. Mr. Rod Ashford, 1505 Cedar Ridge, stated he agreed with Lewis Lowe. He further stated he has voted against every tax increase since 1971. He asked what the plans were for the old library building. There being no additional opponents, Chairman Tyson called for a ten minute break at 7:50 p.m. The meeting reconvened back to order at 8:02 p.m. Chairman Tyson asked Police Chief McKamie to answer Geri Donworth's question. Police Chief McKamie stated that if the election was held and approved in November, the first check would be received in June. With the city manager's approval, officers could be hired one to two months before the money was received. Chairman Tyson noted that money would begin being collected in April for the November election and in July for the January election. Chairman Tyson asked City Manager Hart to answer Mr. Ashford's question. City Manager Hart stated that the old library building would be used for the Development Department. He noted that if it was used for police expansion, it would split the operations and require other buildings to be added onto. Chairman Tyson closed the public hearing at 8:05 p.m. and asked for comments from the board members. Board Member Miller stated that if needed, the city could get a bank loan to add police before getting the money six months after approval. He noted that the questions are how to fund the programs and whether to have long-term or short-term debt. Short-term debt could become long-term if some of the stores had a downturn or closed. Board Member Saleh stated that eight of the thirteen people who spoke were in favor of the one-half cent crime sales tax with a November election. She appreciated Lewis Lowe's comments. She noted that the Board learned earlier today that the ad valorem tax reduction could not be placed on the November 7th ballot. She further noted that TEMPORARY CRIME CONTROL BOARD SEPTEMBER 29. 1995 PAGE 9 Haltom City and North Richland Hills are considering the crime sales tax now. She stated that the Board should listen to the citizens, and thought the election should be held on the November 7th ballot and give the citizens the choice. Board Member Baker stated that the surrounding cities that have not approved the crime tax are considering an election. Most all of the surrounding cities will have an 8 1/4 cent tax. It will be no different paying the sales tax in Euless than in adjacent cities. He felt the City should be taking advantage of the purchases made in Euless from non-residents rather than looking at the source from the ad valorem base. He further noted that in the last few years cities have been hit hard with the loss of federal grants and the addition of federal mandates. In the past the funding has had to come from ad valorem taxes. The legislature has now provided the sales tax as another method for cities to fund some of these programs. He supported the one-half cent tax election being held in November. He also suggested that by having the one-half cent tax for five years, and with the mall developed, the City could come back with a one-half cent sales tax to reduce the property tax which would do a lot more for the citizens than the one-quarter cent sales tax. Board Member Smith stated that Board Member Baker's suggestion reminded him of a church camp sign offering "hot dogs free tomorrow". Tomorrow never came. It was mentioned at the time the original half-cent sales tax for economic development was passed that there would be benefit to the citizens. It is now three years later, and they now have the ability to benefit both the City and the citizens. He stated that with the mall, the one-quarter cent tax would provide the police programs with the majority of it being paid by non-residents. Chairman Tyson stated he still believed that the one-quarter cent crime sales tax and the one-quarter cent sales tax for property reduction was the way to fund all the police programs for the next two years before funding the building. The building fund doesn't go into effect until 1998-99. If the mall or development along SH 121 occurs, it can be determined at that time how to finance the building. He stated he was unsure if the quarter-cent sales tax was approved tonight what guarantee there would be to put the one-quarter cent tax for property reduction on the ballot in January. He thought the quarter-cent crime tax should go on the November ballot, but that there should be some type of guarantee that the City Council would put the one-quarter cent sales tax for property reduction on the January ballot. Board Member Miller stated he had the same concerns. He felt that if the Board went with the two, one-quarter taxes, they should be on the same ballot because of the trust factor. Board Member Baker noted that when the drainage utility district fee was set, it was thought to be enough to pay the 20-year bonds; however, after three years, the fee had to be increased. He felt that the one-quarter cent crime tax would end up not being enough; however, it would have to stay short. If the one-half cent tax was approved, it could always be reduced. • TEMPORARY CRIME CONTROL BOARD SEPTEMBER 29. 1995 PAGE 10 00-- Discussion occurred among the board members on how to ensure that the second tax election would take place if the first one was placed on the November ballot. Different suggestions were made. In response to some of the suggestions, City Attorney McFarland stated that the City could not hold an alternative ballot where you vote on one of three options. He also noted that an election cannot be called prior to 75 days before an election, so the January election could not be called prior to the November election. After additional discussion, Chairman Tyson opened the floor for a motion on the Budget Plan and Crime Control Plan. Board Member Miller made a motion to table the Budget Plan and Crime Control Plan. Discussion ensued as to when the item would be heard again if tabled. City Attorney McFarland stated that if the item was tabled to a definite date, then the Temporary Board would have to meet on that date, or if it was tabled without a definite time, the Board could pull it off the table the next time a meeting was called. He further reminded the Board that they could not call the one-quarter sales tax election for property tax reduction. It had to be called by the City Council. Even though the Board and City Council are made up of the same members, they are two separate boards. The City Council could place the property reduction call for election on the agenda for the first City Council meeting in November. Board Member Smith seconded the motion. Ayes: Board Members Tyson, Smith, and Miller Nays: Board Members Baker, Shields and Saleh Abstentions: Board Member Hart Chairman Tyson declared the motion failed. Board Member Saleh made a motion to support the Budget Plan and Crime Control Plan covering a period of two years. In response to questions, City Attorney McFarland stated that the budget and crime control plans must be approved prior to an election being called. Board Member Miller seconded the motion. Board Member Hart stated that his position on the Board was temporary until a new council member was elected and he had made it clear at that time that he would not vote other than by abstaining. He stated that his recommendation is to move forward with a sales tax election and that he is comfortable with one-quarter cent or one-half cent. He also stated that he would support November, as well as January; but, for the record, he will not vote. TEMPORARY CRIME CONTROL BOARD SEPTEMBER 29. 1995 PAGE 11 Ayes: Board Members Tyson, Smith, Baker, Miller, Shields, Saleh Nays: None Abstentions: Board Member Hart Chairman Tyson declared the motion carried. Chairman Tyson opened the floor for a motion to approve a resolution calling an election for consideration of creation of the Euless Crime Control and Prevention District and the adoption of a local sales and use tax. Board Member Miller made a motion to approve a resolution calling an election for consideration of creation of the Euless Crime Control and Prevention District and the adoption of a local sales and use tax at a rate of one-quarter of one percent to be held November 7, 1995. Board Member Hart seconded the motion. Board Member Smith asked if there could be a commitment to placing the property reduction tax on a future ballot. The motion was amended and seconded to approve a resolution calling an election for consideration of creation of the Euless Crime Control and Prevention District and the adoption of a local sales and use tax at a rate of one-quarter of one percent to be held November 7, 1995. The Board also recommended to the City Council favorable consideration of support in placing the one-quarter of one percent sales tax to reduce the property tax on a ballot in either January or May. Ayes: Board Members Tyson, Smith, Miller and Shields Nays: Board Members Baker and Saleh Abstentions: Board Member Hart Chairman Tyson declared the motion approved. ADJOURNMENT There being no further business to conduct, the meeting adjourned at 8:57 p.m. Chairman Carl Tyson secretary Todd Smith