- CITY OF AUSTIN, TEXAS MINUTES OF THE CITY COUNCIL CITY OF AUSTIN, TEXAS Special Called Council Meeting August 31, 1981 3:30 Ρ.Μ. Council Chambers 301 West Second Street 1 The meeting was called to order with Mayor McClellan presiding. Roll Call: Present: Mayor McClellan, Mayor Pro Tem Trevino, Councilmembers Absent: Deuser, Mullen, Urdy Councilmembers Duncan, Goodman Mayor McClellan stated that this was a Special Called Meeting for the following purposes: 1. Canvassing the returns and declaring the results of the August 29, 1981 Special Municipal Election; 2. City Manager's Report on the Proposed 1981-82 Annual Budget; 3. Transmit to Council the Proposed 1981-82 Annual Budget; 4. Consider setting a Public Hearing on the Proposed 1981-82 Annual Budget; 5. Consider amending the 1980-85 Capital Improvements Program by appropriating $900,000 for acquisition of the Rebekah Baines Johnson Facility and surrounding property. CITY OF AUSTIN, TEXAS - August 31, 1981 CANVASSING OF ELECTION RESULTS The Council then canvassed the results of the Special Municipal Election of August 29, 1981 by reviewing the following precincts: Councilman Mullen Precinct 254 - okay Precinct 141 - okay Mayor McClellan Precinct 324 - okay Precinct 445 - okay Councilmember Mullen Precinct 246 - okay Precinct 247 - okay Mayor McClellan Precinct 447 - okay Councilman Urdy Precinct 147 - okay Councilman Mullen Precinct 138 - okay Precinct 424 - okay Councilman Urdy Precinct 323 - okay Mayor McClellan Precinct 139 - okay Councilman Urdy Precinct 148 - okay Councilman Deuser Precinct 253 - okay Precinct 326 - okay Mayor McClellan Precinct 143 - okay Councilman Urdy Precinct 327 - okay Precinct 451 - okay Precinct 328 - okay Precinct 233 - okay Mayor McClellan Precinct 331 - okay Councilman Deuser Precinct 257 - okay Councilman Urdy Precinct 343 - okay Precinct 346 - okay Mayor Pro Tem Trevino - Precinct 325 It was noted that there was a discrepancy of five votes. August 31, 1981 _ CITY OF AUSTIN. TEXAS Mr. Jimmy Barho, Presiding Judge, Central Counting Station, stated that the precinct was tabulated twice and that apparently 5 people failed to sign the roster. Councilman Deuser Mayor Pro Tem Trevino Precinct 256 - okay Precinct 146 - okay - Precinct 329 It was noted that there was a discrepancy of 1 vote. Motion Mayor Pro Tem Trevino moved that the Council adopt a resolution verifying the results of the Special Mumicipal Election held August 29, 1981. The motion, seconded by Councilmember Deuser, carried by the following vote: Ayes: Councilmembers Mullen, Urdy, Mayor McClellan, Mayor Pro Tem Noes: None Trevino, Councilmember Deuser Absent: Councilmembers Duncan, Goodman August 31, 1981 CITY OF AUSTIN, TEXAS: BOND PROPOSISITONS PROPOSITION NUMBER 1 "THE ISSUANCE OF $41,655,000 GENERAL OBLIGATION STREET AND DRAINAGE BONDS" FOR 15,613 votes AGAINST 14,321 votes TOTAL VOTES CAST 29,934 votes PROPOSITION NUMBER 2 "THE ISSUANCE OF $1,000,000 GENERAL OBLIGATION SANITARY LANDFILL BONDS" FOR 15,423 votes : AGAINST 14,396 VOTES TOTAL VOTES CAST 29,819 votes PROPOSITION NUMBER 3 "THE ISSUANCE OF $1,845,000 GENERAL OBLIGATION HEALTH AND EMERGENCY MEDICAL SERVICE BUILDING BONDS" FOR 15,766 votes AGAINST 14,114 votes TOTAL VOTES CAST 29,880 votes PROPOSITION NUMBER 4 "THE ISSUANCE OF $4,425,000 GENERAL OBLIGATION FIRE STATION BUILDING BONDS" FOR 16,299 votes AGAINST 13,555 votes TOTAL VOTES CAST 29,854 votes August 31, 1981 _ CITY OF AUSTIN, TEXAS PROPOSITION NUMBER 5 "THE ISSUANCE OF $190,000 GENERAL OBLIGATION NEIGHBORHOOD CENTER BUILDING BONDS" FOR AGAINST TOTAL VOTES CAST 11,923 votes 17,909 votes 29,832 votes PROPOSITION NUMBER 6 "THE ISSUANCE OF $1,070,000 GENERAL OBLIGATION LIBRARY BUILDING BONDS" FOR 13,530 votes AGAINST 16,401 votes TOTAL VOTES CAST 29,931 votes PROPOSITION NUMBER 7 "THE ISSUANCE OF $15,120,000 GENERAL OBLIGATION PARK BONDS" FOR 14,707 votes AGAINST 15,221 votes TOTAL VOTES CAST 29,928 votes PROPOSITION NUMBER 8 "THE ISSUANCE OF $2,490,000 GENERAL OBLIGATION TRAFFIC SIGNAL BONDS" FOR 15,279 votes AGAINST 14,599 votes TOTAL VOTES CAST 29,878 votes PROPOSITION NUMBER 9 CITY OF AUSTIN, TEXAS August 31, 1981 "THE ISSUANCE OF $1,475,000 GENERAL OBLIGATION TRANSIT SYSTEM BUILDING AND EQUIPMENT BONDS" FOR AGAINST 12,660 votes 17,222 votes 29,882 votes TOTAL VOTES CAST PROPOSITION NUMBER 10 "THE ISSUANCE OF $630,000 GENERAL OBLIGATION TRANSIT SYSTEM VEHICLE BONDS" FOR 13,693 votes AGAINST 16,238 votes TOTAL VOTES CAST 29,931 votes PROPOSITION NUMBER 11 "THE ISSUANCE OF $3,100,000 GENERAL OBLIGATION PUBLIC WORKS SERVICE FACILITY BUILDING BONDS" FOR 11,998 votes AGAINST 17,789 votes TOTAL VOTES CAST 29,787 votes PROPOSITION NUMBER 12 "THE ISSUANCE OF $180,000 GENERAL OBLIGATION VEHICLE AND EQUIPMENT SERVICES BUILDING BONDS" FOR 11,933 votes AGAINST 17,861 votes TOTAL VOTES CAST 29,794 votes August 31, 1981 CITY OF AUSTIN, TEXAS PROPOSITION NUMBER 13 "THE ISSUANCE OF $34,045,000 REVENUE BONDS FOR ELECTRIC LIGHT AND POWER SYSTEM EXTENSIONS AND IMPROVEMENTS" FOR AGAINST TOTAL VOTES CAST PROPOSITION NUMBER 14 "THE ISSUANCE OF $39,105,000 REVENUE BONDS FOR WATERWORKS SYSTEM EXTENSIONS AND IMPROVEMENTS" FOR AGAINST TOTAL VOTES CAST PROPOSITION NUMBER 15 11,575 votes 18,394 votes 29,969 votes 12,036 votes 17,951 votes 29,987 votes "THE ISSUANCE OF $32,915,000 REVENUE BONDS FOR SEWER SYSTEM EXTENSIONS AND IMPROVEMENTS" FOR 12,019 votes AGAINST 17,895 votes TOTAL VOTES CAST 29,914 votes PROPOSITION NUMBER 16 "THE ISSUANCE OF $7,125,000 REVENUE BONDS FOR AIRPORT IMPROVEMENTS" FOR 13,276 votes AGAINST 16,631 votes TOTAL VOTES CAST 29,907 votes —CITY OF AUSTIN, TEXAS August 31, 1981 Mayor McClellan expressed her thanks to the staff, City Clerk's Office and the Judge and Alternate Judge of the Central Counting Station for their fine work in conducting the election. PROPOSED 1981-82 ANNUAL BUDGET City Manager Dan Davidson introduced the proposed 1981-82 operating budget by stating that it had been the most difficult budget process with which he had been associated. A total of 14 separate drafts had been required to arrive at the final product, which was a budget of $118,973,052, with a recommended tax increase of 10¢ per $100 valuation. The overall tax rate would be 67% per $100 valuation. The proposed budget would retain the same service level now being used, would have few increases and would maintain adequate reserves. The tax rate was 28¢ lower than it was in 1972-73. Ms. Lee Thomson, Budget Director, next reviewed details of the proposed budget. She pointed out that certain new CIP facilities would be opened without additional personnel. In some instances, new programs had been recom- mended to replace existing ones where it was felt that greater efficiency would result. In addition, the Human Services Department's Department's CETA funding was being reduced by $9 million due to Federal funding cutbacks. 35 positions were not recommended for continued funding under CETA and in addition 15 positions in general human services areas were not recommended for funding. Ms. Thomson stated that the proposed increase for 1981-82 over last year's amended budget was $52 million or 11% more. The current General Fund budget, as amended, is $105.6 million, while the proposed General Fund budget was $118.9 million, with a 12.6% increase. The proposed Hospital budget was $50.7 million or a 13.6% increase, while the combined water, wastewater and electric budgets were $335 million or a 10.5% increase. The total property tax increase represented a 17% increase over last year's tax rate. Councilmember Mullen asked why there was an overall 11% increase and a 17% increase in the property tax rate. Ms. Thomson responded that it was because the property tax represented about 26.4% of the revenue for the General Fund, while other major sources of revenue had changed proportionately to the property tax. She then presented the following comparisons between current estimated revenues and pro- posed 1981-82 budget figures as a percentage of total available funds: _CITY OF AUSTIN, TEXAS August 31, 1981 Proposed 1981-82 Budget - Property Tax 26.4% Sales Tax 18.9% - Utility Transfer - 22.6% Estimated Current Revenues - Property Tax 23.2% Sales Tax 18.9% Utility Transfer - 24.7% - Mayor McClellan pointed out that there were some errors in the budget before the Council. Ms. Thompson stated that corrections were being made and that updated versions would be given to the Council. COUNCILMEMBER GOODMAN ENTERS Councilmember Goodman entered the Council Chambers at 4:12 p.m. Analyzing the per capita cost of general government over the past five years, Ms. Thomson said that if the general fund was adjusted for inflation, the per capita cost for general government had remained virtually constant. Compared with the 6 or 7 largest Texas cities, Austin's tax rate was about in the middle. Dallas, Fort Worth and San Antonio were looking at higher proposed tax rates, while El Paso, Lubbock.: and Corpus Christi were looking at lower rates. Regarding the proposed fee increases, Ms. Thomson stated that none of the increases resulted from the outcome of last Saturday's bond election. Responding to Mayor McClellan's question, Ms. Thomson said that 5.6% of the 10.5% proposed increase in water and wastewater revenues resulted from Proposal 7. In response to Mayor McClellan's question, Mr. R.L. Hancock, Electric Department, stated that the major factor for no recommended electric rate increase was the capacity contract with Houston Lighting and Power and that it would be a major influence in future rate increases. Councilmember Urdy did not feel that it was fair to blame Proposal 7 for the water and wastewater rate increase. In response to Councilmember Mullen's question, Mr. Hancock stated that raising the electric rate by 1% would generate $2 million in revenue. Councilmember Mullen pointed out that it would take about a 3¢ raise in property taxes to generate $2 million in revenue. Increasing electric rates by about 50 per month would offset a 3¢ increase in taxes. SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATUR 1 2 3 4 Council work session: Council work session Council work session Council Meeting 1:00 6:00 p.m. 12:00 3:00 p.m 1:00 6:00p.m. 6 7 Holiday 13 14 Collect and distribute questions on budget 8 9 15 16 Publish Citizens Guide Transmit Proposed 1981-86 CIP to Council Distribute Budget Facts 10 Transmit Data Update to Council 17 11 18 22 23 Council work session Council Meeting Public Hearing 5:00p.m. 7:30p.m Council Meeting to complete 24 12:00 - 3:00 p. 'budget decisions Ist reading 30 Council work session Public Hearing 12:00 - 3:00 p.m. (Arts) 4:00 - 7:00 (Social Services) Council work session 9:00 a.m. to completion 2nd reading 25 20 27 21 Operating Budget Public Hearing 5:00 p.m. 28 Budget, work session 1:00 6:00 p.m. 29 3rd read _ CITY OF AUSTIN, TEXAS August 31, 1981 Ms. Thomson next reviewed the various fees proposed for FY 81-82. Transfers for administrative support amounted to $3 million while transfers for debt service came to $2.9 million. The electric transfer excluded fuel and totaled $27.6 million. The water and wastewater transfer to general government was calculated at $2.9 million. The proposed budget recommended 4,472 full time employees for all funds. Of that number, 3,781 employees were proposed for the general fund, an increase of 77 employees. A wage increase of 7.5% was proposed for all current employees and would exclude any new or seasonal and temporary employees. Also included were proposed changes to the health benefits plan and the insurance plan. In the proposed budget, worker's compensation had been pulled out of departmental budgets and placed in a worker's compensation fund so that the fund could be administered more efficiently and to save the City money. Merit increases were budgeted in each department based on actual annual review date and based on the City-wide average percentage given for merit. Terminal pay was not included in the proposed budget except in cases where there was certainty that the money actually would be soent. Ms. Thomson stated that the results of the bond election would impact the proposed budget and the City Manager would be communicating with Council in the near future regarding that impact. An ending balance of 5% of departmental appropriations was recommended for the General Fund. The Council next discussed the proposed CIP and Operating Budget schedule. Motion Councilmember Mullen moved that the Council adopt a resolution setting a public hearing on the proposed 1981-82 Annual Budget on September 17, 1981 at 7:30 p.m. and on September 21, 1981 at 5:00p.m. The motion, seconded by Mayor McClellan, carried by the following vote: Ayes: Councilmembers Goodman, Mullen, Urdy, Mayor McClellan, Mayor Pro Tem Trevino, Councilmember Deuser Noes: None Absent: Councilmember Duncan CITY OF AUSTIN, TEXAS August 31, 1981 Motion Councilmember Mullen moved that the Council adopt the following schedule of hearings and work sessions for the proposed 1981-82 Operating Budget and 1981-86 Capital Improvements Program. (See following page for schedule) The motion, seconded by Mayor McClellan, carried by the following Vote: Ayes: Councilmembers Goodman, Mullen, Urdy, Mayor McClellan, Mayor Pro Tem Trevino, Councilmember Deuser Noes: None Absent: Councilmember Duncan BUDGET AMENDMENT FOR PROPERTY ACQUISITION Mayor McClellan introduced the following ordinance: AN ORDINANCE AMENDING THE 1980-85 CAPITAL IMRPOVEMENT PROGRAM BUDGET; APPROPRIATING $495,000 FROM THE HEALTH CAPITAL IMPROVEMENT PROGRAM FUND AND $405,000 FROM THE PARKS CAPITAL IMPROVEMENT PROGRAM FUND FOR THE PURPOSE OF FUNDING THE ACQUISITION.. OF THE REBEKAH BAINES JOHNSON FACILITY AND SURROUNDING PROPERTY; SUSPENDING THE RULE REQUIRING THE READING OF ORDINANCES ON THREE SEPARATE DAYS; AND DECLARING AN EMERGENCY. Mayor Pro Tem Trevino moved that the Council waive the requirement for three readings, declare an emergency and finally pass the ordinance effective immediately. The motion, seconded by Councilmember Goodman, carried by the following vote: Ayes: Councilmember Mullen, Urdy, Mayor McClellan, Mayor Pro Tem Noes: Trevino, Councilmembers Goodman, Deuser None Absent: Councilmember Duncan The Mayor announced that the ordinance had been finally passed. ! August 31, 1981 _ CITY OF AUSTIN, TEXAS For the record, Finance Director Phil Scheps, stated the financing for the acquisition would be as follows: $495,000 from the Health and EMS Bond Fund $405,000 from the Parks Bond Fund ADJOURNMENT The Council adjourned its meeting at 4:55 p.m. APPROVED Corde ATTEST: Grace Monive City Clerk Mayor